United Trust Bank (UTB) has made reductions across its second charge 5-year fixed rate product range, with rate cuts of up to 1.64%.
The range now includes a sub-6% rate, priced at 5.99%.
This move was designed to make financing more accessible for borrowers seeking second charge loans, offering a range of updated options across the bank’s Prime-Plus, Prime, and Near-Prime plans.
The revised rates will take effect starting from Monday 7th October.
UTB confirmed that all pipeline applications sold on older products will be honoured, provided that an offer is issued by Friday 15th November.
The bank’s reductions apply to all 5-year fixed rate products, including those with and without early repayment charges (ERC), across its Prime-Plus, Prime, and Near-Prime plans.
For borrowers under the Prime-Plus plan, 5-year fixed rates with no ERC will now start at 6.55%, while those with ERCs will start from 5.99%.
Under the Prime plan, the 5-year fixed rates with no ERC will begin at 6.75%, while those with ERCs will now start at 6.65%.
Near-Prime customers will see 5-year fixed rates without ERCs starting at 7.49%, with rates for those with ERCs beginning at 7.39%.
Borrowers and intermediaries can find full details of the changes in UTB’s newly updated Second Charge Product Guide.
Buster Tolfree, director of mortgages – United Trust Bank, said: “We have been in the seconds market for a good few years now we know what brokers and consumers want.
“They want us pass on our ability to reduce rates as soon as we can and by as much as we can, so that’s what we’ve done.
“As a leading lender in the seconds space, we have a responsibility to do the right thing by brokers and customers and our commitment to delivering on our promise is demonstrated by the many awards we have won over the years and the many more awards shortlistings we currently have in play.”
He continued: “We love seconds. We love how they can help people change their lives and reach their goals and we do all we can to promote the market and encourage brokers to consider them.
“We offer great rates, great criteria, slick processing and fast completions. Where we lead, we hope others will follow.”
Matt Tristram, co-founder of Loans Warehouse, said: “Over the past two years, second charge rates have risen as a result of the fall out from the September 2022 mini-Budget, though not as sharply as first mortgage rates, resulting in the gap between the two narrowing significantly – and this trend continues.
“Today’s announcement from UTB follows the recent sub-4% milestone from about a month ago, signalling that second charge rates continue to be within 2% of first mortgage rates.
“Kudos to UTB for leading the way and keeping second charge lending in the spotlight.”
