UTB launches ‘industry first’ PT for seconds; Castle Trust adds flexible bridge – round-up

  • 13/02/2024
  • 0
UTB launches ‘industry first’ PT for seconds; Castle Trust adds flexible bridge – round-up
United Trust Bank (UTB) has launched product transfer options for its residential and second charge loans, claiming this as the first second charge product transfer on the market.

UTB will offer a proc fee of 0.4 per cent for a residential product transfer and one per cent for second charge. 

The specialist lender’s two-year fixed residential rates start from 6.99 per cent, while five-year fixes begin from 7.09 per cent. 

The second charge two-year fixed rates start from 7.39 per cent and five-year fixes from 6.79 per cent. 

Both options have a £995 product fee. 

The product transfers are currently available, and advisers can apply on behalf of clients through the UTB portal. 

Advisers can also submit an enquiry on the lender’s website with the customer’s details, which UTB will assess and provide potential options for. 

Buster Tolfree (pictured), director of mortgages at UTB, said: “We recognise how important it is for brokers to be able to give their customers certainty and peace of mind as they approach the end of their initial fixed rate period. We are delighted to launch these new product transfer options for UTB customers, especially our industry-first second charge product transfer. 

“Furthermore, at 0.4 per cent for first charges and one per cent for seconds, the commissions we’re paying on product transfers are very much at the upper end of the market – proof yet again that we’re keen to look after our brokers when doing a great job for our shared customers.” 

Earlier in the year, UTB slashed bridging rates and lowered the minimum loan size.


Castle Trust Bank launches bridging solution 

Castle Trust Bank has brought out a bridging loan for borrowers who are nearing the end of a fixed rate or existing bridging finance but are waiting to move onto a buy-to-let (BTL) deal. 

The lender said it could help investors who were reluctant to move onto a fixed rate in case interest rates rose. Castle Trust Bank said it would also be of use to borrowers who want to build up a letting track record on the investment property before committing to a long-term loan, as some lenders request a minimum of 12 months of borrowing history before offering terms.  

The product has a term of 12 months with serviced interest at a reduced rate of 0.52 per cent per month, equivalent to an annual rate of 6.24 per cent. Early repayment charges (ERCs) apply for three months.  

Access to the product is available to investors from day one.

Investors can borrow up to 75 per cent loan to value (LTV), and the maximum LTV is available where the interest is rolled up. A 5.5 per cent arrangement fee applies, and there is no exit fee. 

The product is available to investors who want to borrow more from day one. 

Anna Lewis, commercial director at Castle Trust Bank, said: “Bridge the Gap is a product that specifically addresses a growing demand that brokers are seeing for bridging finance that can buy property investors time whilst they wait in hope that rates will continue to fall in the next year. 

“By introducing a 12-month bridge loan with a reduced interest rate, increased arrangement fee and no exit fee, we can provide investors with the flexibility that they need to best manage the rate cycle. If investors have tenants currently paying rent, they could opt to service the loan payments instead of rolling the interest, as the monthly payments on Bridge the Gap are more affordable, aligning with rates currently available in the BTL market.”

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