United Trust Bank has launched into the first charge residential mortgage market with what it’s calling a ‘mini-mortgage’ product.
The second charge specialist has added a first charge product range that allows customers to release equity from an unencumbered property, with loans available from £5,000 to £100,000 and up to 75 per cent LTV. The product can also be used for purchase.
The new deal can be used for a variety of reasons and offers typically lower minimum amounts than standard lenders, UTB says. It is also available to customers that don’t necessarily fit an automated underwriting process.
Repayment terms are available from 3 to 30 years and borrowers must be aged 18 or over at commencement and no more than 85 years old at end of term.
No minimum credit score is required for the products, which come in the form of lifetime trackers and five-year fixed deals, with no ERCs.
The new product was soft launched in November 2017 through Ocean Finance and ChaseBlue Loans and initially will be exclusively available through UTB’s existing introducers.
A wider roll-out is planned for later this year.
UTB commercial director, mortgages Buster Tolfree (pictured) says: “UTB’s products are designed with a consumer-first approach which allows the Banks panel of introducers to give their customers greater choice in under-served 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.”
United Trust Bank entered the mortgage market in January 2016, predominantly as a second charge lender.