UCB Home Loans enters adverse mortgage market

Specialist intermediary lender UCB Home Loans has today announced its expansion into the adverse mortgage market, effective from 22 March 2007.

The lender, which currently specialises in self-certification and buy-to-let mortgages, has said for some time that it is considering other niche markets in order to increase its market share and widen opportunities to grow the business.

It will be offering a range of self-cert adverse loans up to 85% loan to value (LTV) and status adverse loans up to 90% LTV.

The three adverse product categories available are as follows:

Self-Cert and Status Extra Light Adverse – up to £1000 in County Court Judgements (CCJs) or defaults and up to 1 month’s mortgage or rent arrears (none registered in last 3 months).

Self-Cert and Status Very Light Adverse – up to £2000 in CCJs or defaults and up to 2 months’ mortgage or rent arrears (none registered in last 3 months).

Self-Cert and Status Light Adverse – up to £3000 in CCJs or defaults and up to 3 months’ mortgage or rent arrears (none registered in last 3 months).

Each category boasts a choice of two and three year fixed and tracker products, with rates based on the customer’s loan to value.

Keith Astill, managing director at UCB Home Loans said: "Over the past few years we've concentrated on improving and enhancing the products and criteria for our existing markets, as well as developing our online proposition, iSite, which we launched last month.

"In order to provide our intermediaries with the service and products they have come to expect from us, we are now broadening our offering by increasing the number of markets in which we operate,” he said.

UCB Home Loans says that its expansion into adverse lending fits well with its overall risk strategy. It will not be offering medium and heavy adverse loans to customers who have more serious credit problems.

“The combination of rates, fees and lending criteria on the new adverse range is designed to provide intermediaries with even more choice for their clients when looking for products to fit their needs,” said Keith Astill.