UTB unveils dedicated contractor criteria and near prime second charge deal

UTB unveils dedicated contractor criteria and near prime second charge deal

 

It has also added a webchat facility to support broker queries and clarified case packaging guidelines.

The specific professional contractor mortgage criteria applies to those working in industries such as IT, healthcare, business management and other sectors where six, 12, and 18-month contracts are common.

Previously these were included within self-employed criteria but UTB said it expects this move will give brokers more clarity when advising professional contractors.

A minimum 12-month contract history with at least one renewal is required, along with 24 months in a similar role and if less than three months remain on the current contract, evidence of a renewal must be provided and signed by both parties.

Gross annual income will now be calculated at the day rate, times five days, times 48 weeks.

The latest three months’ bank statements, plus other documents depending on the source of income, will be required for proof of income.

The criteria is available across all existing residential mortgage and second charge plans.

 

Second charge

UTB’s limited edition near prime second charge product is for customers with historic unsecured missed payments providing that the debts concerned are consolidated in the new loan.

The lender is removing all caps on the adverse unsecured credit available on its second charge, one and two status products.

“We will now ignore the payment profile on all unsecured credit items entirely, providing they are being consolidated with our loan, a reasonable explanation is received during the underwriting process, and there is no recent pay day loans,” the lender said.

The status two product, which allows the greatest credit forbearance, will permit two mortgage arrears in the last 12 months with a maximum of two outstanding, and two defaults or county court judgements in the last year with no maximum number more than a year ago, providing the total is less than £15,000.

 

Webchat

The webchat facility has gone live on the broker portal.

This will allow any registered mortgage brokers to submit new enquiries to the bank online in real-time with immediate access to mandated underwriters.

The system also enables brokers to discuss existing cases and supply information to UTB which would usually be passed by phone or email.

 

Packaging process

The lender has urged brokers to separate documents when scanning them for underwriting, especially given many of its staff continue working from home.

However, where this is not possible it is urging brokers to scan documents in three groups – customer documents including the application, income documents, and property documents.

Sales director for property intermediaries Mike Walters (pictured) said the changes were part of the UTB’s summer-long programme.

“The increase of our maximum loan to value for self-employed applicants certainly caused a stir in the marketplace and we’re hoping that these latest criteria and technology enhancements will be equally well received,” he said.

“Our aim is to help our broker partners write more business and make it easier for them to process applications with UTB.”

He added: “Brokers are vital to the growth and success of the specialist mortgage market and we will do all we can to support them as they try to turn around a very challenging year.”

 

Kent Reliance extends availability of its ‘near prime’ product range

Kent Reliance extends availability of its ‘near prime’ product range

 

Under the range, borrowers in debt management plans are considered, as well as those who are one-year self-employed.

There are also no value limits on CCJs, arrears or defaults, and communications, mail order and utilities arrears are ignored if under £500.

Rates start from 3.19% and loan to value goes up to 90% and includes first-time buyers.

Adrian Moloney, sales director at Kent Reliance’s parent company OneSavings Bank (pictured), said: “The initial reaction from both intermediaries and their clients has been very positive; therefore it was a natural progression to open our Near Prime range across our entire broker network.

“This range offers customers increased choice, particularly those with specialist needs who are currently underserved and not able to access credit from mainstream lenders.”

“The extended distribution reflects Kent Reliance’s continued commitment to the market to ensure our brokers receive the best possible service, supported in-house by our specialist manual underwriting team.”

Danny Belton, head of lender relationships, Legal & General Mortgage Club added: “Specialist lending in the residential sector continues to grow as the number of customers that have poorer credit histories and CCJs that are explainable, or one-offs increases.

“There are still a number of good customers that require a near prime type of product and criteria, and the Kent Reliance proposition provides welcome opportunities and competition in this sector.”