UTB targets unregulated market growth

This article was created in partnership with United Trust Bank

United Trust Bank has long been regarded as a trusted broker partner and recently made changes to maintain and expand that reputation. Well-known for regulated transactions in the bridging space, over the last 18 months UTB’s average bridging loan size headed north of £500,000 and a significant proportion of that was driven by growth in the unregulated market. In response to this clear demand, UTB mobilised to effectively deliver the service brokers expect in the unregulated sector.

“By offering competitive products and access to our strong expertise, brokers are building the same levels of trust and value they get from our regulated lending proposition and getting the same high levels of service.” says Sundeep Patel, director of bridging at UTB. “We’ve got a great track record in regulated bridging, and now we’ve positioned ourselves to explore and develop our product range on the unregulated side as well — and we’ll continue to make changes to meet the demands of an evolving market.”

Restructuring affirms commitment

Last year the bank’s bridging underwriting team was restructured into separate regulated and unregulated teams. Each now have the right people with the right skills, ensuring that collectively the underwriting department can quickly assess and progress both types of application. In addition, the internal and field sales team are now a united front. This greater integration means more knowledge sharing and better communication. This commitment to and understanding of the market is bolstered by a robust operations team, which are also bringing innovation to the offering with the development of future integration with APIs to continual platform improvements.

This restructuring reaffirmed UTB’s commitment to the unregulated market and signaled its intention to grow that side of the business further, whilst protecting its dominance of the regulated market. After laying the foundation in 2023, this year has seen greater focus on pricing. “There is a published product guide, but it’s just that — a guide,” says Patel, noting it’s about “tailoring the deals to work best for the customer.”

“It was important to us that the deals be bespoke and we invested in technology to help support that goal,” he says. “Our updated portal allows us to be less rigid on unregulated deals. You typically don’t need a high degree of flexibility on regulated bridging as it’s more transaction based than commercially viewed. Now our portal caters for both equally well.”

Building on a strong foundation

Despite the host of changes, UTB’s overall approach remains the same. The bank is proud of its reputation of transparency — “Once we agree a deal, and as long as no material changes crop up in the processing, we don’t change the goal posts. We do a little extra due diligence upfront, but that solid commitment earns respect for us from the broker, and respect for the broker from their client,” Patel notes — and UTB continues to view bridging as a people business, a niche market that requires human interaction.

“That belief guides all our offerings,” Patel says, “and while a comprehensive technology stack supports a streamlined, online process, the in-person service side is still strong. If brokers want to talk, we’re there to support that.”

The last 18 months were volatile in the UK and UTB worked hard to provide stability and the necessary agility to react to the fast-changing market and several rate increases. With demand for property still high and supply limited, and interest rates stabilising with a cut or two expected later in the year, Patel expects increasing transactions as confidence rebuilds. He welcomes the “fragile stability” of 2024 and is looking ahead to 2025 which they expect to be even more optimistic.

“The goal is to grow and be sustainable in that growth, giving customers what they need which will enable us to thrive as well,” Patel says. “We want to connect with more brokers who transact in the bridging space, because we have the appetite, capacity, pricing, and ability to do larger ticket loans and more unregulated business.”