United Trust Bank has introduced a mortgage range designed to help mortgage prisoners stuck on high interest rate products.
The lender will offer a reduced affordability assessment for applicants to the new range, provided that payments are less than for their existing product.
Last week, the Financial Conduct Authority called on lenders to amend criteria in an effort to help an estimated 47,000 mortgage prisoners to move off their current deals.
UTB offers digital credit searches and AVM (automated valuation model) integrated Dip (decision in principle) with document upload facility as well as 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.
Loans are available from £10,000 to £500,000 on two and five-year fixed rates with a max LTV of 60%.
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.
United Trust Bank director of mortgages Buster Tolfree says: “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.”