London Scottish to cease mortgage lending

London Scottish Bank has announced that it will shut down its lending division.

Since pooling its resources into its debt collection arm, Robinson Way, LSB is freezing its mortgage and secured lending service.

Its AGM statement says: “The group is focussed on the development and growth of its successful debt purchase and debt collection division, reducing the capital employed in its lending divisions and, over time, effecting a reduced level of lending and a managed exit from these lending businesses.”

It says: “The mortgages and secured lending division has ceased writing new second charge secured loans but continues to write small volumes of new first charge mortgages.”

Mortgage and secured lending accounted for a £2.1m profit since November 2007, despite a loss of £6.5m.