United Trust Bank (UTB) Mortgages has updated its criteria across residential mortgages and second charges to enhance flexibility.
These come after changes made last week to improve criteria and processes, aiming to simplify and speed up application to offer journeys and give brokers more choice when placing cases.
The latest updates include a wider acceptance of benefits for affordability, and UTB will now allow Universal Credit, excluding Jobseeker’s Allowance and housing benefit, child benefit, pension credit, Personal Independence Payment (PIP), Employment and Support Allowance, Disability Living allowance, Attendance Allowance, Carer’s Allowance, Maternity Allowance, child tax credit and working family tax credit.
UTB has also updated its approach to lending into retirement to allow more flexibility and clarity where the mortgage term runs into planned retirement age or age 70. The lender has updated its Independent Legal Advice (ILA) requirements, removing the need for applicants aged 75 and over at the start of the mortgage term to go through the process. UTB said it would save these borrowers time and money.
Across its second charge mortgage proposition, UTB has revised its automated valuation model (AVM) rules for applications to improve delivery times and remove the need for physical valuations.
The use of AVMs will be eligible up to 85% loan to value (LTV), with a minimum confidence score of five, up to 60% LTV with a minimum confidence score of four, and up to 40% LTV with a minimum confidence score of three.
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For a gross loan up to £250,000, UTB will consider AVMs up to 75% LTV, minimum confidence score of five and maximum property value of £1m.
For properties valued at more than £1m, UTB will accept up to 75% LTV, a maximum gross loan of £150,000 and minimum confidence score of six.
Andrew Ferguson, commercial director of mortgages, BTL and bridging at UTB, said: “These latest changes are all about giving brokers more opportunities to place specialist cases with UTB when applicants rely on benefits or are borrowing into retirement, both of which are growing customer sectors.
“When you add these to the enhancements announced over the last 10 days, you can see that we’ve transformed much of our mortgage and second charge loan criteria and given brokers even more reasons to choose UTB for speed, flexibility, simplicity and certainty.”
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