UTB introduces second charge binding offers; Pepper launches e-signatures – round-up

  • 22/02/2024
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UTB introduces second charge binding offers; Pepper launches e-signatures – round-up
United Trust Bank (UTB) has launched a binding offer process for second charge mortgages.

The lender aims to reduce the application to offer time by five days by giving borrowers a binding offer with special conditions. 

UTB said first mortgage lenders sometimes placed a restriction at the Land Registry, which is required for consent to be given before a second charge loan can be offered. The lender said this was usually delayed and was often the only outstanding action on an application. 

However, issuing an offer without consent or without a special condition for consent could put a borrower in breach of their first charge mortgage and deliver a bad outcome, the lender said. 

UTB’s binding offers with special conditions are applicable against non-affordability linked requirements, which allows the requirements to be provided after an offer has been issued and before completion. 

This can be used when the first charge lender has given consent to a second charge, where there are up to date redemption figures and in circumstances where bank details for items of debt consolidation have been provided. 

This can also apply where there is a deed of consent for non-dependent residents. 

UTB said feedback from a pilot of the policy resulted in a five-day reduction in the application time to offer. 

Buster Tolfree, director of mortgages at UTB, said: “We entered the second charge market to shake it up, and nearly 10 years on, we’re still innovating and improving to grow the market and help our brokers complete more business.

“Speed to offer and completion is probably the most important success factor in a second charge loan application. Reducing a customer’s wait for a binding offer by five days is a huge reduction, and what we have seen in the pilot is that the reduced delay significantly increases the possibility that the loan will complete.” 

He added: “Both we and brokers waste less time on abandoned cases and are more productive and profitable as a result. And customers get their money quickly to crack on with their home improvements or alleviate their debt worries. It’s a real win-win-win.” 

Earlier this month, UTB launched product transfer options for select loans.


Pepper Money brings in e-signatures for second charge

Pepper Money has updated its process to allow e-signatures on second charge offer documents. 

This will include the mortgage deed and is expected to speed up the overall process. 

The lender said it would allow eligible borrowers to receive an offer immediately and reduce the time it takes for a mortgage deed to be completed and returned. 

Pepper Money said this would also prevent circumstances where borrowers do not return all the required documentation or return it incomplete. 

Ryan McGrath, second charge sales director at Pepper Money, said: “The launch of e-signatures further enhances Pepper Money’s market-leading second charge mortgage proposition, making the process quicker and easier for brokers and customers.

“It also delivers a number of less-obvious advantages. By reducing printing and postage, e-signatures will further strengthen Pepper’s ESG credentials by reducing our carbon footprint, and a more digital process will also enable us to invest more resources in further elevating the service we provide our partners.

“Consistently delivering outstanding service is a core focus for us at Pepper Money, which is why we choose to work with a select number of intermediary partners with whom we can build a close working relationship to ensure the best possible customer results.” 

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