United Trust Bank cuts second charge rates and updates AVM criteria

UTB said the changes meant it would be able to roughly double the number of AVMs it would be able to complete, rather than what it called “costly and time-consuming” physical valuations.

Interest rate reductions apply to its two, three and five year fixed rates for prime and near prime applicants, and rates have been reduced by at least 0.5 per cent up to one per cent depending on status and loan to value (LTV). UTB borrowers can also access second charge interest rates from 3.85 per cent.

UTB’s second charge loans of around £500,000 are available up to 85 per cent LTV, whilst interest rates are available from 3.85 per cent for prime and 5.05 per cent for near prime.

AVMs available for loan sizes up to £250,000 at 70 per cent LTV, £100,000 at 75 per cent LTV and £25,000 at 80 per cent LTV.

UTB estimated that as well as being cheaper, cases using AVMs complete, on average, seven days faster than those using a physical valuation.

The refreshed criteria will be incorporated into UTB’s new online automated underwriting and decision in principle process through its mortgage portal.

Cases already in the pipeline have been reviewed for AVM eligibility, and customers have been contacted if they no longer require a physical valuation.

Mike Walters (pictured), UTB’s sales director mortgages,  said the firm had entered the market in 2015 and one of the keys to its success was its “enthusiasm to talk to brokers, gain their insight and evolve our offering to ensure it continues to meet their and their customers’ needs”.

He added: “Brokers expect to see market leading rates, flexible criteria and a quick and simple application journey delivered through smart technology and skilled, knowledgeable people.”

“This refresh will keep UTB at the top of broker’s consideration lists for second charge mortgages and signals our intent to continue supporting the broker community with a competitive and innovative specialist mortgage offering which meets the demands of customers underserved by mainstream lenders. This is the first of many exciting product and service enhancements you’ll see from UTB Mortgages this year.”