United Trust Bank

Mortgage Type

Residential

Property Value (min)

£100,000 for core products & FIRST TIME BUYERS £75,000 at 60% LTV for 3mc exclusives - £100,000 for interest only

Advance (min)

£25,000

Advance (max)

£1,000,000 up to max LTV 85% - (85% LTV) UTB -0 - Status only. Including Interest only
£250,000 if property is unencumbered.

Term (Max)

40 years

Minimum Age

18 years 25 years for Interest only repayment type.

Maximum Age

85 years at the end of the mortgage term

Family Cash Gift Deposit

Yes, no vendor deposits

Family Gift of Equity Deposit

Yes - but if a gift of equity is to be used, then the applicant must have at least 15% deposit based upon the loan amount. So if £100,000 is the total loan amount, the applicant must be able to put in £15,000. The value of the property will be based on FMV minus the gifted deposit amount - the total will act as the LTV - 85% LTV maximum.

Income (min)

Minimum Primary Applicant Income – £15,000 PA

FIRST TIME BUYERS - Max 80% LTV and £500k Loan Size
0-Status 2yr, 3yr and 5yr fixed rates
FTB must have three items of active credit at application (excluding comms/mail order)
Minimum £25k Income, Maximum 4.50 LTI and minimum £50,000 application total annual income
Minimum £100k property value
Available for Gifted Deposit, Gifted Equity and Purchase at Undervalue
Not currently eligible for FTB: Interest Only, RTB, HTB and Shared Ownership


If Interest only - minimum income is £50,000

Max DTI – 40%
Max LTI – 4.50 up to max LTV, however, 6.00 to 60% LTV product range
80% LTV - Primary income must be employed only, minimum 12 months in current role
5x income up to 85% on 0 range only.

United Trust Bank consider Joint Borrower/Sole Proprietor
Consider Single applications if married and rationale is accepted by underwriting.

Let to Buy (Turning Residential into Buy to Let)

No, not considered.

Ex-Local Authority Properties

Yes, accepted.

Minimum years remaining on leasehold property

60 years remaining at the end of the mortgage term. However, by exception can consider up to 40 years by exception.

Minimum Ownership

12 months mortgage history, 6 months in current – however, refer if slightly under these parameters.
Applicants will be classed as first-time buyers if there has been no mortgage found on a credit search for 6 years, this includes unencumbered properties.
Can consider less than 6 months if clients have had 12 months mortgage history - case by case basis

Permanent rights to reside and remain

Yes, required.

Ex-Patriates

No

New Builds

Yes.

Purchases allowed off-plan, subject to re-inspection before completion.
Max 5% new build incentives, including builders deposit.
Evidence of an appropriate new build warranty, or certificate.

Credit Score

Not on all ranges - but do credit check No minimum credit score for First Time Buyers 1 & 2 Status Criteria • 0 Status – No change, no minimum Credit Score • 1&2 Status – New minimum 300 Equifax Navigator Credit Score

Historic CCJ’s & Defaults

CCJ's & Defaults:

Note: must meet unsecured credit, secured lending and CCJ & default criteria to be considered, please refer to product guide.

Assessed by number (whether satisfied or not) AND £-value.

All CCJ’s and defaults will be ignored if under £300

Ignore if under £300 mail order or Communications.

UTB-0 Range: 0 in last 2 years
Max of 5 over 2 years old, providing total is less than £5,000

UTB-1 Range: 1 in last 12 months
No max number over 1 year old, providing all in total less than £10,000

UTB-2 Range: 2 in last 12 months
No max number over 1 year old, providing all in total less than £15,000

Ignore Mail Order and Comms Defaults regardless of size or when registered.
No minimum number of active credit items for First Time Buyers.

UNSECURED adverse: If there are any accounts (no max number) that are currently in arrears, we will not count the arrears if the clients bring them up to date pre offer.

Valuation Fees

Valuation fees paid directly to the lender at the lenders valuation fee scale AVM's available to £500k and 75% LTV on remortgages only, not purchases

Maximum number of applicants

2

Countries

Will lend in England, Scotland (mainland) and Wales.

Access

Access to United Trust Bank is via mortgage packagers currently, one of which is 3mc.

Missed mortgage payments

UTB-0: 0 in 3 months. 0 in 12 months, 0 outstanding. UTB-1: 0 in 3 months. 1 in 12 months. Max 1 outstanding. UTB-2: 0 in 3 months. 2 in 12 months. Max 2 outstanding. If the client doesn’t make a payment on their mortgage or secured loan on the due date, but makes this before the next payment is due then UTB wouldn’t treat this as arrears. Some lenders will report missed payments within 2 weeks of the payment being missed, if you can get a 12 month statement from the lender confirming due date and when it was paid can ignore from an arrears point of view.

Shared Ownership

Yes, but only to buy out the remaining share to make 100%

Right to Buy (RTB)

Yes - They can remortgage if the current applicant is 3 years into a pre-emption period, otherwise, they will not consider. Do not consider a purchase

Debt Management Plan

Considered, whether repaying the DM off or not, need a 12-month statement from the DMP provider.

UTB policy states we generally don’t lend to clients on a DMP, however, UTB can lend whether the client is clearing or not, as long as we have a 12-month statement confirming the payments have been made, any missed and it’s a decline.

Help To Buy (Shared Equity)

No

Ex-Bankrupts

Yes - 6 years from discharge considered.

IVAs

Will ignore IVA after 1 year satisfied as long as they haven’t had any adverse since the discharge date, otherwise - 6 years from discharge considered.

Repossessions

No, not considered.

Payday Loans

Consider on a case by case basis

Repayment Types

Capital and Interest Interest only - they assess the Interest only payment, not on C&I - 75% max LTV (70% for downsizing)

Lenders completion fee

Can be added to loan.

Affordability

Affordability and ONS based.

Employment

Max 80% LTV for all employed applicants

Contractor: -

Gross Annual Income will now be calculated at the day rate x 5 days x 48 weeks
A minimum 12m contract history with at least one renewal is required, along with 24m in a similar role. If less than 3m remain on the current contract, evidence of a renewal must be provided and signed by both parties.
Proof of Income:
Applicants paid by Employer or via an Umbrella Company: Last 2m payslips, supported by the latest P60 and latest 3m bank statements. Umbrella Company fees/costs will be deducted from Gross income.
Applicants paid via a pure income servicing Limited Company: Latest Accounts or Accountants Certificate, supported by the latest 3m personal and business bank statements. The company must be 100% owned by the Applicant and trading for a minimum of 12m.

Please note: United Trust Bank currently will not consider: -

• Travel – For example airlines, travel agents, tour operators or travel call centre sales staff
• Hospitality – For example, hotel or B&B staff
• Entertainment and Leisure – For example bar, restaurant or venue staff
• Retail – For example, high street shop workers or online retail support staff


Note: -
Guaranteed income, such as Basic earnings and Car Allowances, accepted.

Accept 50% of all regular Bonus, Overtime and Commission income for employed staff, including key workers and non-key workers

For Key Workers listed on www.gov.uk regular Bonus/Overtime, including Shift Allowances, will be considered on an individual case basis, subject to the standard 18m history and evidence.

As forms of employment.

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3 months in currently employed role with 12 months continuous or 6 months in the current job, neither can be in probation.
Where a client has been in employment for 1 month (with 12 months continuous) in the same line of work as previous UTB can consider

Overtime: - policy states 0% but UTB can use up to 100% if regular, consistent, intrinsic to roll and evidenced with 18 months proof.

Annual bonus: - can take bonuses/ commission if it is monthly, bi-monthly or quarterly if an annual bonus is received UTB wouldn't normally use it, with 2 years P60's though we can refer to credit.

Benefits - £25k earned income: - policy states that they can use benefits where the client is earning £25,000, UTB can look as low £20,000

Maintenance: - where there is no court order/ CSA in place - if we can evidence via 18 months of filtered bank statements UTB can look to refer to credit.

Income over the age of 70: - employed income can't be used passed 70, but where the client is self-employed but not actively working, I.e. just receiving salary or dividends whilst family run the business, UTB can consider.

Self Employed

Max 80% LTV for all self-employed applicants - only 0-Status, no other range.

Sole Traders: 100% of Net Profit. Partnerships/Limited Companies: 100% of all sustainable drawings or dividends in addition to any salary.

Contractor: -

Gross Annual Income will now be calculated at the day rate x 5 days x 48 weeks
A minimum 12m contract history with at least one renewal is required, along with 24m in a similar role. If less than 3m remain on the current contract, evidence of a renewal must be provided and signed by both parties.
Proof of Income:
Applicants paid by Employer or via an Umbrella Company: Last 2m payslips, supported by the latest P60 and latest 3m bank statements. Umbrella Company fees/costs will be deducted from Gross income.
Applicants paid via a pure income servicing Limited Company: Latest Accounts or Accountants Certificate, supported by the latest 3m personal and business bank statements. The company must be 100% owned by the Applicant and trading for a minimum of 12m.

Retained Profits and Directors Loans are not accepted.

Pension/Maintenance – 100% of all regular income.

Working Family Tax Credit, Child Benefit and Child Tax Credit – 100% of all income, providing there is a minimum of £25,000 total earned income across the application.

Sole trader to limited company: - where the client has only had a limited company for a short time but changed from being a sole trader we can consider with an explanation from the accountant (normally for tax reasons).