United Trust Bank Mortgages for Intermediaries has announced that they are now expanding their mortgage offerings to include new build properties. This decision comes as a part of their ongoing effort to adapt to market demands and provide more versatile financing options.
The expansion means that customers looking to invest in or purchase new build homes can now access tailored mortgage products designed specifically for these types of properties. Whether it’s a house to call home or an investment property for rental purposes, United Trust Bank (UTB) is opening the door to a broader audience.
Improved Terms Following Recent Repricing
Following a recent repricing effort, UTB has made its mortgage products even more attractive. For those looking to invest in rental properties, buy-to-let mortgages now start at an interest rate of 4.84%. On the other hand, residential mortgages for homebuyers begin at a rate of 5.99%. These competitive rates are part of UTB’s strategy to make property investment and homeownership more accessible.
Enhanced Credit Criteria to Support More Buyers
UTB has also revised and broadened its credit criteria, which now includes new rules for accepting customers with adverse credit histories. This change is geared towards accommodating a wider range of financial backgrounds, making it easier for those who have experienced financial difficulties in the past to secure financing.
Special Considerations for New Build Purchases
For new build properties, UTB requires an appropriate new build warranty or certificate to proceed. They accept off-plan purchases, which are agreements to purchase property before it is completed, with the condition that a re-inspection is performed prior to completion. Furthermore, the bank has set a maximum new build incentive of 5%, including what is often referred to as a builder’s deposit.
Keeping Consistent with Standard Offers
Despite these new offerings, the other criteria and features of UTB’s mortgage products remain consistent with their standard options. Residential mortgages are available with a loan-to-value (LTV) ratio of up to 85% and a maximum loan size of £1 million. For buy-to-let mortgages, the limits are set at an 80% LTV and a maximum loan size of £1.5 million.
Buster Tolfree, the director of mortgages at United Trust Bank, emphasised the benefits of this expansion: “This expansion of our product range gives brokers more choice for clients who want to buy a brand-new home but have a complex income or credit history blips. At UTB we are all about helping people to fulfil their property dreams even if they don’t fit the criteria of mainstream lenders. I’m delighted that our common sense and flexible approach to property types, incomes, and historic adverse now extends to this important sector of the property market.”