United Trust Bank has introduced a line of mortgages designed to help mortgagees stranded on high interest rate products.
The lender will offer a reduced affordability assessment for applicants to the new line, provided the payments are lower than their existing product.
Last week, the Financial Conduct Authority called on lenders to change the criteria in an attempt to help around 47,000 mortgage prisoners renounce their current agreements.
UTB offers digital credit searches and an integrated AVM (Automated Assessment Model) Dip (decision in principle) with document upload function as well as an application-based biometric identity verification process.
New products are only available through Mortgage Advisory Service Certified Brokers who have a proven track record of advising mortgage holders.
Loans are available from £ 10,000 to £ 500,000 at fixed rates over two and five years with a maximum LTV of 60%.
Mortgage prisoners are defined by the FCA as borrowers who are unable to switch from an SVR to a new mortgage agreement despite being up to date with their mortgage payments and, based on their loan risk characteristics and borrower, could potentially benefit from a change.
United Trust Bank Mortgage Director Buster Tolfree said: “The FCA’s publication of the Mortgage Prisoners review highlights the number of people trapped in low-value mortgages, often no fault of their own. their part. As a Specialty Mortgage Lender, we have the flexible underwriting skills and ability to help many of these households move to a better, more competitive deal if their circumstances do not match those required by most other lenders.
“These are probably great options for Standard Variable Rate Mortgage (SVR) customers with closed book lenders who may not be able to meet the affordability requirements of a traditional mortgage but may nonetheless be able to afford it.” show a history of maintaining their mortgage payments. I am very happy that UTB is one of the first specialty mortgage lenders to offer products specifically designed to help mortgage lenders get a better deal.