The product has been designed to enable customers to release equity in their unencumbered property and for customers that don’t necessarily fit an automated underwriting process. The product can also be used for purchases and a wide range of construction types are considered.
UTB Mini-Mortgages are available from £5,000 to £100,000 and up to 75% of LTV.
Repayment terms can be agreed from 3 to 30 years and borrowers should be no more than 85 years old at end of term.
UTB does not require a minimum credit score and interest rates include Bank of England Base Rate lifetime trackers and five-year fixed rates.
The process
The loan was soft launched in November 2017 through Ocean Finance and ChaseBlue Loans and will initially be exclusively available through UTB’s existing introducers with a wider roll-out later this year.
Gareth Shilton, director of Ocean Finance, said: “I’m sure this new product will be warmly welcomed by brokers who now have another option for clients wishing to release equity from their property or borrow a relatively small amount at competitive rates.”
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, United Trust Bank commercial director – mortgages, said: “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 launched into specialised mortgages in 2015 initially offering a range of second charge loans.
