United Trust Bank refreshes its Second Charge offering with substantial rate cuts and revamped AVM criteria

02 February 2022

United Trust Bank (UTB) Mortgages has announced a major refresh of its Second Charge product range with interest rate reductions across many products and new AVM (Automated Valuation Model) criteria. UTB believes they will roughly double the number of AVMs they will be able to complete rather than costly and time-consuming physical valuations.

The significant interest rate reductions apply to 2, 3 and 5 year fixed rates for Prime and Near Prime applicants with rates typically reduced by at least 0.5% to 1% depending on status and LTV. UTB borrowers can now benefit from second charge interest rates from as little as 3.85%.

UTB was one of the first specialist mortgage lenders to adopt the use of AVMs and continues to adjust its criteria to enable more valuations to be completed this way rather than insist on physical valuations. UTB estimates that as well as being cheaper, cases using AVMs complete on average 7 days faster than those using a physical valuation. With speed being such a critical factor in the conversion of second charge mortgage cases, they’re expecting considerable improvements to their and brokers’ success rates.

The refreshed criteria will be incorporated into UTB’s new online automated underwrite and DiP process available through the Mortgage Portal where brokers can receive an instant pass, decline or refer decision 24 hours a day, 365 days a year following a 4-minute application.

Pipeline cases have been reviewed for AVM eligibility and customers contacted if they no longer require a physical valuation.

Second Charge refresh highlights

Loans available to £500k and 85% LTV
Interest rates available from 3.85% for Prime and 5.05% for Near Prime
AVMs available for loan sizes up to £250k at 70% LTV, £100k at 75% LTV and £25k at 80% LTV

Mike Walters, Sales Director – Mortgages, United Trust Bank commented: “UTB has been a leading light in Second Charges since we first entered the market in 2015. One of the secrets of our success is our enthusiasm to talk to brokers, gain their insight and evolve our offering to ensure it continues to meet their and their customers’ needs.

Brokers expect to see market leading rates, flexible criteria and a quick and simple application journey delivered through smart technology and skilled, knowledgeable people. This refresh will keep UTB at the top of broker’s consideration lists for second charge mortgages and signals our intent to continue supporting the broker community with a competitive and innovative specialist mortgage offering which meets the demands of customers underserved by mainstream lenders. This is the first of many exciting product and service enhancements you’ll see from UTB Mortgages this year.”

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