United Trust Bank has launched a range of first-time buyer mortgage aimed at “underserved customers”.

The specialist lender says the products range from a maximum 80 per cent loan to value and have a loan size of up to £500,000, with a minimum property value of £100,000.

Two-year, three-year and five-year fixed rates start at 3.80 per cent. Applicants must have a minimum income of £25,000, and a maximum loan-to-income ratio of 4.5.

The bank says its “specialist mortgage products, [are] designed to accommodate those underserved customers who do not meet the high street approach of a minimum credit score or automated process”.

The lender adds the move is part of a range of new products it has introduced over the last year as it develops its first and second charge specialist mortgage position.

United Trust Bank commercial director – mortgages Buster Tolfree says: “This is yet another step towards UTB offering a full suite of specialist mortgage products catering for customers requiring a bespoke underwriting approach rather than the sausage-factory attitude of more generic credit-score based high-street lenders.”

Tolfree adds: “We’ve supported brokers throughout the pandemic and their feedback on the development of our product range and technology-led service has been overwhelmingly positive.”

The move comes as a plan from chancellor Rishi Sunak to offer an incentive to lenders to supply 95 per cent mortgages emerged over the weekend.

The proposed scheme, set to be announced in the Budget on Wednesday 3 March, will give buyers (and not just first-time buyers) the option to put down a 5 per cent deposit on a home worth up to £600,000, tackling the problem of higher-LTV mortgages disappearing from the market.