Secure Trust Bank considers halting new lending
Secure Trust Bank is today consulting on a proposal to stop originating new mortgages.
The lender said this action is being taken in light of the current economic climate, increased competition and pressures on the housing market.
The bank launched its first mortgage on 20 March 2017. It specialises in mortgages for the self-employed, contract workers, those with complex incomes and those with a recently restored credit history.
Paul Lynam, chief executive officer at Secure Trust Bank, said: “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.”
The mortgage business will continue to operate as normal through the consultation period and during the period there will be no impact on existing mortgage customers or new applications in progress.
Lynam added: “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.”
Further information will be made available once the consultation process has concluded which is anticipated to be at the end of February.