Secure Trust Bank has entered into consultation on a proposal to cease origination of new mortgage lending.
The lender says the action is being taken in light of the current economic climate, increased competition and pressures on the housing market.
The business intends to operate as normal through the consultation and says there will be no impact on existing mortgage customers or new applications.
Secure Trust Bank chief executive Paul Lynam (pictured) says: “Market pressures show no sign of abating, with competition intensifying, as evidenced by increasing loan-to-value metrics and lower new lending margins. Having considered all of these factors, and whilst no final decision has been made, we are proposing to cease origination of new mortgage business until conditions become more favourable. This proposed course of action is consistent with our strategy of lending responsibly to build a long-term, sustainable business.”
Lynam says: “This has been a difficult decision to take and has absolutely no reflection on the professionalism and hard work of our mortgage colleagues or the many organisations they work in partnership with, – a fact that has recently been corroborated by wide ranging external recognition, including a five star award at the Financial Adviser Service Awards.”
The lender will provide more information on its next steps once the consultation process has concluded which we anticipate will be at the end of February.
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 heading up the bank’s mortgage arm as managing director.