The mini mortgage for the millions

Government figures suggest there are around 7.7 million households in England which are owned outright. 7.7m households who, if they wanted to access some of the capital tied up in their homes, could now consider UTB’s newest mortgage product as a great alternative to equity release.

Equity release may be ok for some but certainly not for all. It’s quite an expensive way of borrowing and the compounding of rolled up interest means the debt can grow quickly, at 6% it will double in less than 12 years. Some borrowers don’t want a debt which increases, especially one which grows more quickly the longer they live or keep their house.

That’s where our new Mini-Mortgage comes in. We created it to enable customers to access some of the capital tied up in their mortgage free property, typically at loan sizes below standard minimum mortgage amounts and for customers that don’t necessarily fit an automated underwriting process.

• Loan sizes from £5,000 to £100,000
• Up to 75% of LTV
• Repayment terms from 3 to 30 years
• Borrowers can be up to 85 years old at the end of the term
• No minimum credit score required
• No Early Redemption Charges
•BofE Base Rate lifetime trackers and 5-year fixed rates available

The Mini-Mortgage gives intermediaries an extra tool in the box when talking to clients who are mortgage free and wanting to put the equity in their home to good use in improving their finances and increasing their lifestyle choices.

This customer’s finances were back on the road in eight days

Our applicant had realised that their car was becoming a money pit. It regularly needed repairs and the costs of keeping it on the road were not going to get any lower. With the bills coming on top of their other outgoings, finances were feeling the pinch. They decided the answer was a more reliable car, but how could they afford it?

The customer spoke with a Credit Intermediary and completed a fact find. The applicant could see that by consolidating their outstanding credit as well as the funds to purchase a new car, their outgoings would be slightly less than they were currently paying and there would be no more repair costs. Looking for certainty in their outgoings, they also wanted to take advantage of UTB’s 5-year fixed rate product. Following a fully advised sale, releasing some of the equity in their unencumbered home was the best solution and they were keen to progress the application as quickly as possible.

The application was submitted to UTB and allocated to an underwriter. With the Credit Intermediary also an approved UTB packager they ensured that the pack included the applicant’s last two months payslips and an automated valuation report, which negated the need for an in-person inspection. Within four days of receipt of the application we were able to issue the Binding Offer. At UTB offers are accepted by returning the original Mortgage Deed, which the customer did quickly and UTB released the funds to them 48 hours later.
From application to completion in eight days.

Mini-Mortgage – £35,000
Term – 10 years (5-year fixed rate)