United Trust Bank launches into specialist remortgage market – exclusive

The product does not require a minimum credit score or borrower legal representation, uses automated valuation models (AVMs) up to 75 per cent loan to value (LTV) and has no application fees.

It is available at up to 85 per cent LTV with two-year fixed rates from 3.8 per cent, five-year fixed rates from 3.95 per cent, and a Bank of England tracker from +3.35 per cent.

UTB will take the same approach to county court judgements and defaults as it does with its second charge product, and all cases will be manually underwritten.

There is no LTV restriction on property construction types and no proof of buildings insurance is required.

Digital innovation

UTB commercial director – mortgages Buster Tolfree (pictured) told Specialist Lending Solutions that it had made digital innovation a key part of the product.

“We spent a lot of time and effort identifying where we can introduce new digital solutions to the process,” he said.

“Anything that makes things easier for the customer and does not mean the lender is taking on more risk is what we are aiming for.

“Some of what we have got allows us to compete in ways that maybe some of the other first charge lenders cannot yet,” he added.

Continue to diversify

This product is the latest step for UTB following the launch of its unencumbered mortgage, and the lender has pledged there will be more to come.

Tolfree agreed that this year was going to be a big one for the lender and that it was trying to make its mark.

“Our plan from four or five years ago was always to diversify into other mortgage products and we began that with the unencumbered loan which allowed us to prove the concept,” he said.

“This now allows us to step into a mainstream specialist market, which is a bigger market than the second charge one so we can spread our wings a little bit further.

“We’re not just looking at volume and business development and growth, but also to change our distribution strategy.”

Distribution growth

The remortgage product will only be available through a selected group of packagers and master brokers to begin with.

The launch into the new market has meant UTB is now working with packagers it had not previously dealt with such as Impact, 3MC and Connect, with more due to join shortly.

“Dealing with new packagers is a big step but it’s nice to be out there and is all part of the growth strategy,” Tolfree added.

Impact Specialist Finance managing director Dale Jannels said: “This is a highly positive move from United Trust Bank and an important addition to the market.

“We are seeing growing numbers of borrowers who are being ignored by mainstream lenders because they don’t fit a tick box approach to lending.

“There are many reasons why a borrower can slip into the adverse credit lending band, but it’s crucial to a healthy mortgage market that such people have access to good advice and that there is sufficient competition between lenders in the sector. UTB will certainly shake things up.”