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United Trust Bank launches range for mortgage prisoners

  • 07/12/2021
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United Trust Bank launches range for mortgage prisoners
United Trust Bank (UTB) has launched a range of mortgage products designed to help mortgage prisoners refinance onto lower rates.


The range is open for borrowers who may need a specialist approach to their application status, income or property. 

UTB will apply a reduced affordability assessment in line with the Financial Conduct Authority’s (FCA’s) policy to relax assessment for affected borrowers. 

The new monthly payments must be lower than current monthly payments and no stress rate is applied. 

The products will only be available through brokers who are accredited by the Mortgage Advice Service and show they have experience with advising mortgage prisoners. 

The range offers loans between £10,000 and £500,000 and like-for-like remortgages are available. Products are fixed for either two or five years and the maximum loan to value offered is 60 per cent. 

Remortgages are available on a capital and interest or interest-only basis. 

Last week, the FCA published its review into mortgage prisoners and urged more lenders to help as it found just 200 borrowers had benefitted from relaxed affordability assessments. 

The regulator estimated that 47,000 mortgage prisoners could refinance onto a lower mortgage rate and reduce their monthly payments. 

Mortgage prisoners are defined by the FCA as borrowers that are unable to switch from a standard variable rate (SVR) to a new mortgage deal despite being up to date with their mortgage payments and, depending on their loan and borrower risk characteristics, could potentially benefit from switching. 

Buster Tolfree, director – mortgages, United Trust Bank, said the review highlighted just how many people were “trapped in poor value mortgages” through no fault of their own. 

He added: “As a specialist mortgage lender, we have the skills and flexible underwriting capability to help many of those households move to a better, more competitive deal if their circumstances don’t suit those required by most other lenders. 

“I’m very happy that UTB is one of the first specialist mortgage lenders to offer products specifically designed to help mortgage prisoners get a better deal.” 

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