United Trust Bank

United Trust Bank (UTB) was incorporated in 1955 and is a specialist in secured lending. As at December 2021, United Trust Bank had a loan book in excess of £1.8bn.

United Trust is different from many banks in that applications must be made via a broker (who will receive a fee) - applicants cannot apply directly. This requires customers to outline their needs with the broker who can then find the best loan product. UTB loans are often suitable options for customers with more complex circumstances and who may not be able to obtain loans from mainstream lenders.

All United Trust Bank loans are secured, meaning that the applicant must use their home as security/collateral. This is in contrast to unsecured loans where no security is required (and repayments and interest rates are often higher to reflect the added risk to the lender).

United Trust Bank offers a number of different secured loans, including:

• First-time/charge mortgages
• Second-charge mortgages
• Remortgages
• Mini-mortgages
• Asset finance
• Bridging finance

United Trust Bank offers residential first-charge mortgages up to a maximum of £750,000. This range includes mortgages up to 85% LTV, fixed rates of between 2 and 5 years, and these products are also available to first-time buyers. There are also a number of options for interest-only first-charge mortgages. The maximum Loan to Income (LTI) ratio on first-charge loans over £500,000 is 4.5.

A second-charge mortgage is a product that is designed for customers looking to raise additional funds secured against their home whilst not affecting the existing mortgage. The maximum amount that United Trust Bank lend on a second charge mortgage is £400,000 and these loans are available on a BoE tracker basis or 5-year fixed rate basis with repayment periods of between 36 and 300 months.

United Trust Bank offers remortgages on similar terms to their first-charge mortgages outlined above.

United Trust Bank's 'mini-mortgage' product is specifically aimed at customers who wish to release equity in their home but are not keen on equity release products or the amount is below the minimum for a more traditional/standard mortgage. Loan sizes range from £5,000 up to £100,000 with a LTV of 75% maximum. Repayment terms range from 3 to 30 years, there are no early redemption charges. Borrowers can be up to 85 years of age by the end of the loan term.

United Trust Bank offers asset finance loans to fund a variety of assets including but not limited to classic/prestige cars, buses and coaches, engineering machinery, HGVs, and agricultural equipment. Its asset finance products include hire purchase, lease and general refinancing.

United Trust Bank has offered bridging finance options for more than a decade. These loans can be used for any purpose but are most commonly used to 'bridge' the gap between the sale of an existing property and the purchase of a new one. United Trust Bank offer bridging loans from £125,000 up to £15m with terms of between 12 months and 36 months. These loans do not incur early repayment charges, attract daily interest charges, and there is no maximum age limit.

United Trust Bank has won a number of awards in the past few years including 'Best Specialist Bank' and 'Best Regulated Bridging Lender' (at the Bridging & Commercial Awards 2021), 'Best Second Charge Lender' (2021 Mortgage Strategy Awards), and 'Secured Loan Lender of the Year 2021' (at the SFI 2021 Awards).

United Trust Bank allows customers to pay off their loans early without incurring a penalty charge. This can save money by reducing the amount of interest payable.

Before taking out a homeowner loan, it is important to consider all alternative options carefully. Other ways of accessing funds include:

• Unsecured personal loans. People who have good credit history and plenty of disposable income will be able to access loans from most lenders. Most offer loans of up to £25,000, although some may go as high as £50,000 for existing customers.
• Specialist car finance. If the money that you need is specifically to buy a new car/vehicle, there are a number of car finance options available to consider before opting for a homeowner loan.

To be eligible for a secured loan from United Trust Bank you need to:

• be a homeowner
• be aged over 18
• live in England, Scotland or Wales
• be employed, self-employed, or have a retirement income

In summary, United Trust Bank offers significant loans at favourable rates and may be a good option for financially responsible adults with a strong credit history.