United Trust Bank (UTB) has implemented substantial interest rate cuts across its regulated and unregulated bridging finance products, reflecting its confidence in the buoyant housing market.
- Interest rates for standard regulated bridging loans have been reduced to 0.65% per month, down from the previous 0.75%.
- Large loan rates have also been lowered from 0.64% to 0.63%, while small loans over £100,000 now share the same rates as larger ones.
- For experienced investors, heavy refurbishment loans now start at 0.8% per month, decreased from the prior 0.9%.
- UTB’s director of bridging, Sundeep Patel, emphasises the bank’s commitment to supporting brokers with these competitive rate reductions to nurture market activity.
United Trust Bank (UTB) has taken a decisive step by reducing interest rates on its bridging finance products. This move is aimed at invigorating the market by making borrowing more accessible and affordable for a wide range of clients. Standard regulated bridging loans have seen a reduction in interest rates from 0.75% per month to 0.65%, marking a significant decrease that could save borrowers substantial sums over the duration of their loans.
In alignment with these reductions, UTB has also adjusted rates for large loans, bringing them down from 0.64% to 0.63% monthly. This change indicates UTB’s strategic approach to maintaining competitive pricing in a fluctuating market environment. Moreover, loans exceeding £100,000 are now subject to the same lower rates that were previously reserved for large amounts, thereby removing the distinction that made smaller loans more expensive.
For experienced borrowers engaged in heavy refurbishment projects, the interest rates have been decreased from 0.9% to 0.8% per month, offering them more favourable financial conditions. Meanwhile, inexperienced borrowers see a rate drop to 0.9% from the previous 1.0% for similar projects, indicating a slight relaxation in lending terms to encourage broader market participation.
Sundeep Patel, director of bridging at UTB, stated that the bank’s initiative to cut rates is a response to the growing demand for bridging finance, following a reduction in the Bank of England’s base rate. The adjustments not only reflect UTB’s belief in the strengthening housing market but also represent their intent to provide outstanding service and financial options that allow brokers and clients to capitalise on existing opportunities.
The recent interest rate cuts by UTB signify a proactive commitment to fostering growth and adaptability in the housing finance sector.
