Whether you’re improving your home or consolidating debt, United Trust Bank could help with a secured loan. United Trust Bank doesn’t provide secured loans directly to consumers, so you will need to apply through one of its brokers (the broker will receive a fee).
If you borrowed £35,000 over a 14-year term at 8.95% p.a. (variable), you would make 168 monthly payments of £418.88 and pay £70,371.84 overall, which includes interest of £30,326.84, a broker fee of £3,550.00 and a lender fee of £995.00. The overall cost for comparison is 11.8% APRC representative.
What's in this review?
- What is United Trust Bank?
- What are second-charge mortgages and a mini-mortgages?
- Key features of a United Trust Bank homeowner loan at a glance
- Am I eligible for a United Trust Bank secured loan?
- How can I apply?
- Alternative options
- Pros and Cons of United Trust Bank loans
- Our verdict
- Frequently asked questions
What is United Trust Bank?
Incorporated in 1955, United Trust Bank is a specialist secured lending bank. As well as providing homeowner loans, it offers a range of other products through its network of brokers. These products include bridging finance, professional loans and asset finance.
What are second-charge mortgages and a mini-mortgages?
- Second-charge mortgage. These are designed for customers who wish to raise additional funds secured on their home while leaving the existing first-charge mortgage on their home untouched.
- Mini-mortgage. This would suit customers who want to release equity in their home at an amount that typically falls below the minimum for a standard mortgage.
Key features of a United Trust Bank homeowner loan at a glance
United Trust Bank provides second-charge and “mini-mortgages” to UK homeowners. This is a type of loan that is secured against your property.
- Borrow £10,000 to £500,000. United Trust Bank will lend up to 75% of the value of your property, less the outstanding mortgage. There are no restrictions on this percentage for listed properties, ex-council properties or high-rise flats.
- Repay over 3 to 30 years. Your repayment term will depend on your individual needs and circumstances as well as your credit score.
- Competitive fixed or variable rates. Interest rates can be fixed for a set term to help you budget for the repayments.
- Security. Your home will be used as security on your loan. Missing repayments will put your home at risk, so always ensure that you can afford the loan you are asking for before you apply.
- Early repayment. United Trust Bank allows you to repay your loan early without a penalty. You can also make unlimited overpayments on your loan, which would save you money in interest.
Am I eligible for a United Trust Bank secured loan?
You should only apply for a United Trust Bank secured loan if you are certain you can meet the repayment terms. You must also:
- Be a homeowner
- Live in England, Scotland or Wales
- Be aged over 18
- Be employed, self-employed or have a retirement income
How can I apply?
To obtain a secured loan from United Trust Bank, you will need to apply through one of its brokers. The broker will perform a credit check on the details you provide and assess your affordability before a decision is made on your loan.
Before taking out a homeowner loan, you should consider all of your options carefully. Other ways of borrowing large sums include:
- Remortgaging. Remortgaging is when you switch to a new mortgage, with the same or a new lender. In the process you can renegotiate the loan – potentially releasing equity.
- Unsecured personal loans. If you have excellent credit and would be able to afford it, most lenders offering unsecured loans will stretch to £25,000, or in some cases £30,000. Some big high-street banks will go up to £50,000 for existing customers, but again, you’ll need to get through the affordability and credit checks.
- Car finance. If you need money to buy a new vehicle, there are a wide range of car finance options you could consider.
Pros and Cons of United Trust Bank loans
- Possibility of borrowing larger sums than with unsecured loans
- No penalty for early repayments
- Lower interest rates for customers with excellent credit history
- You can only apply through a broker
- Missing a payment on your secured loan could put your home at risk
- Higher interest rates for customers with limited or poor credit history
A secured loan might not be for everyone but if you consider yourself to be financially responsible with a credit report that reflects this, then you might want to explore United Trust Bank’s offerings. But you’ll only be able to get one through a broker.
If that doesn’t phase you, then you could be in line to borrow a big sum of money for rates that you find favourable compared to others. Plus, if you decide to make early repayments, you won’t be charged any fees and stand to actually save money in interest.
While you can take a look at the secured loans offered by United Trust Bank above, there are alternatives you might want to consider. Just remember to do a little research and to shop around.
Frequently asked questions
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