​Secured Loans F​rom ​United Trust Bank Review

The United Trust Bank (UTB) was established in 1955 and have always been a specialised lender offering a variety of residential mortgage products. They were voted the Best Secured Loan Lender at the 2018 Mortgage Strategy Awards after only introducing this range in January 2016.

Part of UTB’s success is down to their partner network as they do not offer any secured loans directly to consumers. They’re a broker only lender preferring to work with a select panel of mortgage brokers able to deliver high-quality service to clients.

United Trust Bank provide the bespoke underwriting service suitable for a range of clients across the subprime, near-prime and prime markets.

What the Funding Can Be Used For

There are very few restrictions on what you can do with the funds released by a UTB secured loan. Options include:

• Paying for a new car
• Property portfolio expansion, however, the loan must be secured on the applicant’s primary residence, not a property with a BTL mortgage in place.
• Pay for your children’s tuition fees
• Pay for a wedding
• Or use the funds for debt consolidation, rolling all your regular monthly payments towards paying down debt into one manageable monthly repayment.

• UTB will lend on a variety of property types, based on the valuation of the property. Automated and drive-by valuations are subject to a max LTV (loan to value) of 70%. A full valuation will be required for secured loans between 70% LTV and the maximum 80% LTV.
  
  
• You must have lived in the mortgaged property for the previous six months and have a one-year mortgage history. It is possible to be approved with one missed mortgage payment within the past year.
  
  
• Minimum earnings for the primary applicant are £15,000.
  
  
• All employment types considered with flexible proof of incomes, so long as you can verify a regular income whether from employment, self-employment or a retirement income, can be used as evidenced income for the affordability assessment.
  
  
• Additionally, Tax Credits and Child Benefit can be used as additional income sources.
  
  
• Self-employed applicants will need two years accounts.
  
  
• Employed applicants can use up to 50% of regular bonus payments and commissions paid by their employer. Overtime is classed as non-guaranteed income, and can’t be used.
  
  
• Minimum age of 18 years old.
  
  
• Maximum age at the end of the loan term is 85-years of age.
  

• ​​There is no minimum credit score used for acceptance criteria.
  
  
• Mortgage arrears are limited to one in the past twelve months, provided it’s not within the previous three months at the time of application; therefore, your existing mortgage can’t be in default status.
  
  
• Current active arrears on unsecured debts is restricted to one account.
  
  
• CCJs and defaults are considered up to a maximum of 5 CCJs whether satisfied or unsatisfied, however; these exclude accounts with balances under £300 and those that are over two-years-old up to a combined maximum of £5,000.
  
  
• Applicants with a recent bankruptcy status won’t be eligible.
  
  
• Debt Management Plans may be considered, subject to affordability assessment.
  

• ​​Borrow from £10,000 to £250,000
  
  
• Variable interest rate or fixed rate
  
  
• Capital plus interest repayment terms - no option for interest only
  
  
• Repay between 3-years up to a maximum of 25-years
  
  
• For homeowners with their mortgage repaid, a mini-mortgage can be taken out as a second charge loan without remortgaging your property.
  
  
• Suitable for property investors, however; the secured loan must be secured on your main residential property, not a BTL mortgage.
  
  
• No early redemption fee with the ability to overpay an unlimited amount. There is a minimum overpayment amount of £100.00 per payment.
  
  
• Loan completion subject to a £100 Land Registry Discharge Fee.
  
  
• Interest rates on tracker mortgages (2nd charge) start at the current BoE (Bank of England) rate then +3.4% for prime borrowers, near prime rates from BoE +5.25% for near prime and BoE +7.15% subprime rates.
   
  

The United Trust bank’s bad credit second mortgages offer a flexible approach to releasing equity from your home without affecting your primary mortgage.

It’s suitable for debt consolidation and for retired homeowners to access some of the equity in their home at more affordable borrowing rates, without releasing the full equity of their home.

The only thing required is evidence of regular income and to have the loan paid in its entirety by the time you reach 85 years of age.

Find out how much you could borrow and for how much by contacting us today!