United Trust Bank (UTB) has entered the first charge residential mortgage market after introducing its new mini-mortgage product .
The specialist bank has designed the product to enable customers to release equity in their unencumbered property for a variety of reasons, typically at loan sizes below standard minimum mortgage amounts and for customers that don't necessarily fit an automated underwriting process.
UTB's mini-mortgages are available from £5,000-100,000 and up to 75% LTV with repayment terms available from three to 30 years.
Loans are individually underwritten, and a wide range of construction types are considered.
There's no minimum credit score required and interest rates available are a selection of Bank of England base rate lifetime trackers and five-year fixed rates, none of which have early redemption charges, while broker and product fees can be added to the loan.
Other features of the mini-mortgage include:
• available on properties in England, Wales and mainland Scotland
• minimum property value £100,000
• hometrack AVM and drive-by valuations available subject to criteria
The product was soft launched in November 2017 through Ocean Finance and Chaseblue Loans and initially will be exclusively available through UTB's existing introducers with wider roll-out later this year.
“Reaction to the mini-mortgage range during the soft-launch phase has been excellent and I'm delighted that Ocean Finance has been on board from the start providing valuable insight to assist in shaping the product,” said Gareth Shilton, director at Ocean Finance.
Ben Gillespie, owner of Chaseblue Loans, added: “This is a great product and what's more, like UTB's second charge offering, it benefits from simple processes, a fantastic underwriting team and excellent BDM and training support.”
Buster Tolfree, commercial director of mortgages at UTB (pictured above), said UTB's products were designed with a consumer-first approach which allowed the bank's panel of introducers to give their customers greater choice in underserved market sectors.
“Following the success to date, I'm delighted that UTB's mortgage offering continues to develop into other mortgage sectors where there's a clear customer demand, but a distinct lack of choice.
“By using the same consumer-outcome based approach we apply to all of our lending, I'm confident that brokers will find the mini-mortgage a useful addition to their product tool kit.”
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