United Trust Bank Mortgages for Intermediaries has cut second charge rates by up to 70 basis points, with and five-year terms for prime borrowers starting at 7.55% for up to 65% loan to value.
The specialist lender has also reduced product fees for these types of loans under £25,000 to £395.
It says the moves make lending for these products “more competitive on monthly payments and total cost of credit measures for smaller loans”.
United Trust Bank sales and marketing director – mortgages Caroline Mirakian adds: “We have taken on board this emerging trend for smaller loan sizes and the pressure on consumers caused by an avalanche of base Rate increases and high inflation.
“We appreciate the tough environment brokers are working in and want to help them to place business and achieve great outcomes for their customers by giving them more competitive product options.
“We believe that with market-leading five-year fixes from 7.55% and product fees from £395, we’re supporting brokers in the most practical way we can.”
Second charge mortgage lending tumbled 25% to £109m in September compared to a year ago, reflecting a “weaker economic outlook,” according to data from the Finance & Leasing Association released today.
