United Trust Bank (UTB) has introduced further changes to its residential and second charge lending criteria, widening affordability assessments and easing requirements for older borrowers.

The lender said the latest updates are designed to improve flexibility for brokers placing specialist cases, while also helping to streamline the application-to-offer process.

WIDER USE OF BENEFITS IN AFFORDABILITY

United Trust Bank will now accept a broader range of benefits as part of affordability assessments. These include Universal Credit, excluding Jobseeker’s Allowance and Housing Benefit, alongside Child Benefit, Pension Credit, Personal Independence Payment, Employment Support Allowance and Disability Living Allowance.

Attendance Allowance, Carer’s Allowance, Maternity Allowance, Child Tax Credit and Working Family Tax Credit are also now included within affordability calculations.

The move reflects growing reliance on multiple income sources among borrowers, particularly within specialist segments.

CHANGES TO LATER LIFE LENDING

The bank has also revised its approach to lending into retirement, offering greater flexibility where mortgage terms extend beyond a borrower’s planned retirement age or age 70.

In addition, it has removed the requirement for Independent Legal Advice for applicants aged 75 and over at the start of the mortgage term. The lender said this would reduce both time and cost for older borrowers.

UPDATED AVM RULES FOR SECOND CHARGE

Changes have also been made to automated valuation model criteria for second charge loan applications. United Trust Bank has aligned its confidence score requirements with loan-to-value thresholds to increase the number of cases that can proceed without a physical valuation.

Under the revised structure, loans up to 85% LTV require a minimum confidence score of five, while loans up to 60% LTV require a score of four, and loans up to 40% LTV require a score of three.

For loans up to £250,000, the lender will consider up to 75% LTV with a minimum confidence score of five on properties valued up to £1m. For properties above this level, lending is capped at £150,000 and 75% LTV, with a minimum confidence score of six.

Andrew Ferguson (pictured), commercial director of mortgages, buy-to-let and bridging at United Trust Bank, said: “These latest changes are all about giving brokers more opportunities to place specialist cases with UTB when applicants rely on benefits or are borrowing into retirement, both of which are growing customer sectors.

“When you add these to the enhancements announced over the last ten days, you can see that we’ve transformed much of our mortgage and second charge loan criteria and given brokers even more reasons to choose UTB for speed, flexibility, simplicity and certainty.”