Secure Trust Bank has confirmed that it will cease origination of new mortgage lending following a consultation.
The bank says it will not offer new mortgages to borrowers “until conditions become more favourable” and has liaised with staff on the matter.
The current economic climate, increased competition and pressures on the housing market have been highlighted as contributing to the decision.
Existing customers are not expected to be affected by the decision and will continue to have their loans administered in accordance with the General Mortgage Conditions, says STB.
It adds that registered intermediaries will be contacted shortly with confirmation of pipeline deadlines for cases in progress.
The bank has thanked mortgage industry colleagues for “demonstrating the highest standards of professionalism and dedication since launch”
Secure Trust entered the mortgage market in March 2017 with the intention of offering mortgages to those who are under-served by mainstream lenders, such as the self-employed.
Since then it has introduced lending in the later life, Right to Buy and new build markets, with Esther Morley (pictured) heading up the bank’s mortgage arm as managing director.
The cessation of mortgage lending will not affect any of STB’s other lending businesses, including its real estate finance business.
It says that the closure will have minimal impact on the group’s revenue as mortgages only represent a small part of its total lending