The product has been designed to enable customers to release equity in their unencumbered property for a variety of reasons, typically at loan sizes below standard minimum mortgage amounts and for customers that don’t necessarily fit an automated underwriting process. Mini-Mortgages can also be used for purchases.
UTB Mini-Mortgages are available from £5,000 to £100,000 and up 75% of LTV. Repayment terms can be agreed from 3 to 30 years and borrowers must be aged 18 or over at commencement and no more than 85 years old at end of term. Loans are individually underwritten and a wide range of construction types are considered.
Similar to United Trust Bank’s lending criteria for second charge mortgages, there’s no minimum credit score required and interest rates available are a selection of Bank of England Base Rate lifetime trackers and 5-year fixed rates, none of which have early redemption charges. Broker and Product Fees can be added to the loan, which is available on properties with a minimum value of £100,000.
The new product was soft launched in November 2017 through Ocean Finance and ChaseBlue Loans and initially will be exclusively available through UTB’s existing introducers with a wider roll-out later this year.
Commenting on the success of the soft-launch, Gareth Shilton, Director of Ocean Finance, said:
“UTB have once again identified an area of the mortgage market where there was an opportunity to innovate with some intelligent product design. Reaction to the Mini-Mortgage range during the soft-launch phase has been excellent and I’m delighted that Ocean Finance has been on board from the start providing valuable insight to assist in shaping the product. I’m sure this new product will be warmly welcomed by brokers who now have another option for clients wishing to release equity from their property or borrow a relatively small amount at competitive rates.”
Ben Gillespie, owner of ChaseBlue loans, added:
“This is a great product and what’s more, like UTB’s second charge offering it benefits from simple processes, a fantastic underwriting team and excellent BDM and training support. I’m sure that UTB and the mortgage team will be chalking up another success with this move into first charge mortgages.”
Buster Tolfree, United Trust Bank Commercial Director – Mortgages, commented:
“Since entering the mortgage sector in January 2016, UTB has played a leading role in the development and growth of the second charge market under the post-MCD, MCoB framework. UTB’s products are designed with a consumer-first approach which allows the Banks panel of introducers to give their customers greater choice in under-served market sectors.
“Following the success to date, I’m delighted that UTB’s mortgage offering continues to develop into other mortgage sectors where there’s a clear customer demand but a distinct lack of choice. By using the same consumer-outcome based approach we apply to all of our lending I’m confident that brokers will find the Mini-Mortgage a useful addition to their product tool kit.”
