United Trust Bank has launched into the first charge residential mortgage market with its new 'Mini-Mortgage' product.
The product has been designed to enable customers to release equity in their unencumbered property for a variety of reasons, typically at loan sizes below standard minimum mortgage amounts and for customers that don’t necessarily fit an automated underwriting process.
Mini-Mortgages can also be used for purchases.
UTB Mini-Mortgages are available from £5,000 to £100,000 and up 75 per cent loan-to-value (LTV).
Repayment terms can be agreed from three to 30 years and borrowers must be aged 18 or over at commencement and no more than 85-years-old at end of term.
Loans are individually underwritten and a wide range of construction types are considered.
Similar to United Trust Bank's lending criteria for second charge mortgages, there is no minimum credit score required and interest rates available are a selection of Bank of England base rate lifetime trackers and five-year fixed rates, none of which have early redemption charges.
Broker and product fees can be added to the loan, which was soft launched back in November.
Gareth Shilton, director of Ocean Finance, said: "UTB have once again identified an area of the mortgage market where there was an opportunity to innovate with some intelligent product design.
"Reaction to the Mini-Mortgage range during the soft-launch phase has been excellent and I’m delighted that Ocean Finance has been on board from the start providing valuable insight to assist in shaping the product.
"I am sure this new product will be warmly welcomed by brokers who now have another option for clients wishing to release equity from their property or borrow a relatively small amount at competitive rates."
Ben Gillespie, owner of ChaseBlue Loans, said: "This is a great product and what is more, like UTB's second charge offering it benefits from simple processes, a fantastic underwriting team and excellent BDM and training support.
"I am sure that UTB and the mortgage team will be chalking up another success with this move into first charge mortgages."
emma.hughes@ft.com
