United Trust Bank launches new ‘Mortgage Prisoner’ remortgage products

United Trust Bank (UTB) has launched an enhanced range of mortgage products, designed to help ‘Mortgage Prisoners’ escape their higher interest rate deals. UTB’s Mortgage Prisoner product range is ideal for those ‘Mortgage Prisoners’ who need a specialist lender’s view on application status, income or property.

Applicants will benefit from a reduced affordability assessment, providing the new payment is less than the current payment, and no interest rate buffers are applied. Customers and brokers will also benefit from a quick digital journey enabled by UTB’s investment in time and hassle saving fintech. This includes using a full credit search and AVM integrated DIP with document upload facility and an app based biometric ID verification process.

By combining technology with specialist underwriters, UTB can individually assess each application on its merits, aiming to fulfil the needs of customers wishing to remortgage at a more sustainable rate.

The new products are only available through Mortgage Advice Service accredited brokers who have shown they have experience of advising mortgage prisoners.

Highlights of the new Mortgage Prisoner remortgage products include:

  • Loans available from £10,000 to £500,000
  • £ for £ remortgages (no capital raising)
  • 2 & 5 year fixed rates
  • Maximum 60% LTV
  • Interest Only or Capital Repayment available

Last week the FCA urged lenders to consider changes to lending criteria to help what they estimate to be around 47,000 borrowers who could benefit from a cheaper home loan but are currently unable to move.

Mortgage Prisoners are defined by the FCA as borrowers that are unable to switch from an SVR to a new mortgage deal despite being up to date with their mortgage payments and, depending on their loan and borrower risk characteristics, could potentially benefit from switching.

Buster Tolfree, Director – Mortgages, United Trust Bank, commented: “The FCA’s publication of the review of Mortgage Prisoners highlights just how many people are trapped in poor value mortgages, often through no fault of their own. As a specialist mortgage lender, we have the skills and flexible underwriting capability to help many of those households move to a better, more competitive deal if their circumstances don’t suit those required by most other lenders.

“These are likely to be great options for customers on standard variable rate (SVR) mortgages with closed book lenders who may be unable to meet the affordability requirements of a traditional remortgage but can nonetheless show a track record of maintaining their mortgage payments. I’m very happy that UTB is one of the first specialist mortgage lenders to offer products specifically designed to help mortgage prisoners get a better deal.”

Brokers can register to use UTB’s Mortgage services at www.utbankmortgages.co.uk