United Trust Bank (UTB) has announced the launch of a new range of mortgage products, designed to help mortgage prisoners escape their higher interest rate deals.

The bank suggested the products are “ideal” for mortgage prisoners who need a specialist lender’s view on application status, income or property.

Last week the FCA urged lenders to consider changes to lending criteria to help the estimated 47,000 borrowers who could benefit from a cheaper home loan but are currently unable to move.

Mortgage Prisoners are defined by the FCA as borrowers that are unable to switch from an standard variable rate (SVR) to a new mortgage deal despite being up to date with their mortgage payments, and depending on their loan and borrower risk characteristics, could potentially benefit from switching.

UTB’s mortgage prisoner remortgage products will be available at two and five-year fixed rates, with loans available from £10,000 to £500,000, and maximum LTV of 60% LTV.

Applicants would benefit from a reduced affordability assessment, providing the new payment is less than the current payment, and no interest rate buffers will be applied, UTB confirmed.

 “The FCA’s publication of the review of mortgage prisoners highlights just how many people are trapped in poor value mortgages, often through no fault of their own,” commented UTB director – mortgages, Buster Tolfree.

“As a specialist mortgage lender, we have the skills and flexible underwriting capability to help many of those households move to a better, more competitive deal if their circumstances don’t suit those required by most other lenders.

“These are likely to be great options for customers on SVR mortgages with closed book lenders who may be unable to meet the affordability requirements of a traditional remortgage but can nonetheless show a track record of maintaining their mortgage payments. I’m very happy that UTB is one of the first specialist mortgage lenders to offer products specifically designed to help mortgage prisoners get a better deal.”

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