- 2 March 2021
- Posted by: mikey0809
- Category: Mortgage
A range of first-time buyer mortgage aimed at “underserved customers” has been launched by United Trust Bank.
United Trust Bank says the products range from a maximum 80% loan to value and have a loan size of up to £500,000, with a minimum property value of £100,000.
The fixed rates start at 3.80% for the two-year, three-year and five-year.
A minimum income of £25,000 is required of the applicant, and a maximum loan-to-income ratio of 4,5.
The lender says its “specialist mortgage products, [are] designed to furnish those underserved customers who do not meet the high street approach of a minimum credit score or automated process”.
The bank adds the move is part of a range of new products it has introduced over the last year as it develops its first and second charge specialist mortgage position.
United Trust Bank commercial director – mortgages Buster Tolfree says: “This is yet another step towards UTB offering a full suite of specialist mortgage products catering for customers requiring a bespoke underwriting approach rather than the sausage-factory attitude of more generic credit-score based high-street lenders.”
Tolfree adds: “We’ve supported brokers throughout the pandemic and their feedback on the development of our product range and technology-led service has been overwhelmingly positive.”
The move comes as a plan from chancellor Rishi Sunak to offer an incentive to lenders to supply 95% mortgages emerged over the weekend.
The proposed scheme, set to be announced in the Budget on Wednesday 3 March, will give buyers (and not just first-time buyers) the option to put down a 5% deposit on a home worth up to £600,000, tackling the problem of higher-LTV mortgages disappearing from the market.