United Trust Bank Mortgages for Intermediaries has moved to cut second charge application-to-offer times by around five days by offering binding offers with special conditions, including first mortgage consent.  

The specialist lender says it’s common for first mortgage lenders to place a restriction at the Land Registry that requires their consent to be provided before a second charge loan can be offered.   

It adds: “First mortgage lenders often take time to process and issue these and so the required consent is frequently the only item outstanding, delaying the second charge loan offer.”  

The firm points out that issuing a binding offer without consent, or without a special condition for consent, can technically place the borrower in breach of their first mortgage terms and conditions, potentially creating a poor customer outcome and contravening Consumer Duty.  

But it says all the lender’s second charge loan binding offers can now be issued with special conditions for a range of non-affordability linked requirements.   

These requirements can then be provided after the offer, but before completion.  

The business adds that pilot tests have cut around five days from the offer process.  

Examples of where special conditions can be used include:  

• First mortgage consent to second charge  
• Up-to-date redemption figures  
• Bank details for items of debt consolidation  
• Deed of consent for non-dependent residents  

United Trust Bank director of mortgages Buster Tolfree says: “Speed to offer and completion is probably the most important success factor in a second charge loan application.   

“Reducing a customer’s wait for a binding offer by five days is a huge reduction and what we have seen in the pilot is that the reduced delay significantly increases the possibility that the loan will complete.   

“Both we and brokers waste less time on abandoned cases and are more productive and profitable as a result. And customers get their money quickly to crack on with their home improvements or alleviate their debt worries.”  

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