United Trust Bank (UTB) has launched a new range of mortgage products, designed to help mortgage prisoners escape their higher interest rate deals.
UTB’s Mortgage Prisoner product range is aimed at 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. The digital journey includes using a full credit search and AVM integrated DIP with document upload facility and an app based biometric ID verification process.
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
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, said: “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.”