Secure Trust Bank wants to lend to older borrowers once its current proposition is established, its managing director of mortgages Esther Morley has revealed.
The bank is analysing a variety of products from equity release to residential mortgages running into retirement before getting involved itself.
Morley (pictured) said: “One area we are looking at is how to better service older customers. That market is doing well and there aren’t enough lenders there.
“You have IFAs who are very knowledgeable on the investment and pension side of things and you have brokers who are knowledgeable about the mortgage market. How do you bring those two knowledge bases together?
“There needs to be some product innovation in that market.”
Secure Trust Bank only came to two weeks ago, offering loans up to 80% loan-to-value for the self-employed and credit impaired.
Currently the lender’s distribution is limited to the Mortgage Advice Bureau but this will be widened to other networks and mortgage clubs in the second and third quarters this year, with a view to eventually being available across the whole market.
Before its launch Secure Trust Bank asked brokers what they wanted and they said consistency of decision making as well as transparency, Morley added.
With this in mind the lender is allowing brokers to speak to underwriters directly to help them understand nuances in criteria.
The bank also pledged to tell brokers quickly whether the deal is on or off and ask all the necessary questions upfront.
Morley explained: “If the broker has a good deal but the client doesn’t tick the box in terms of criteria he can chat through that case with the underwriter and explain the circumstances.
“If those stack up and everything looks fine we will look to do the deal.
“If a customer has had a divorce but has credit issues around it two years ago it allows brokers to explain.
“Not all customers are straightforward.”
Secure Trust Bank made £137.5m in 2016, though that was in part due to selling off its Everyday Loans business, which offered secured lending and personal loans.
Morley added: “We’re not naïve coming to the market thinking we’ve got something completely different from every other lender.
“We’ve got a parent that’s willing to lend, wants to lend, wants to use its balance sheet and therefore we’re going to be a player in the market.”