United Trust Bank (UTB) Mortgages has carried out a major refresh of its second charge product range with interest rate reductions across many products and new AVM (Automated Valuation Model) criteria.
UTB believes they will roughly double the number of AVMs they will be able to complete rather than costly and time-consuming physical valuations.
The significant interest rate reductions apply to 2-, 3- and 5-year fixed rates for Prime and Near Prime applicants with rates typically reduced by at least 0.5% to 1% depending on status and LTV. UTB borrowers can now benefit from second charge interest rates from as little as 3.85%.
UTB was one of the first specialist mortgage lenders to adopt the use of AVMs and continues to adjust its criteria to enable more valuations to be completed this way rather than insist on physical valuations.
UTB estimates that as well as being cheaper, cases using AVMs complete on average seven days faster than those using a physical valuation. With speed being such a critical factor in the conversion of second charge mortgage cases, they’re expecting considerable improvements to their and brokers’ success rates.
The refreshed criteria will be incorporated into UTB’s new online automated underwrite and DiP process available through the Mortgage Portal where brokers can receive an instant pass, decline or refer decision 24 hours a day, 365 days a year following a 4-minute application.
Pipeline cases have been reviewed for AVM eligibility and customers contacted if they no longer require a physical valuation.
