Secure Trust Bank – which entered the mortgage market last week – increased its pre-tax profit by nearly four times (379%) to £137.5m in 2016.
The intermediary-only lender has pledged to offer loans to those underserved by the high street which it defined as the self-employed, contract workers, those with complex incomes and the credit-impaired.
Esther Morley, managing director at Secure Trust Bank Mortgages, said: “The latest results from the wider group are yet another sign that we are in a very strong position to be launching into the UK mortgage market.
“A lot of hard work has gone in to developing a proposition that sets us apart from the competition and we’re looking forward to supporting those customers who don’t always fit the criteria of traditional lenders.”
The lender is currently lending though the Mortgage Advice Bureau, though it plans to widen its distribution.
The bank will lend up to £2m per household and customers can choose from 2, 3 and 5-year fixed rate deals with a maximum loan-to-value of 80%.
Paul Lynam, chief executive at Secure Trust Bank, said: “During 2016 we have built out the operating platform necessary to support the launch into the residential mortgage market.
“Our lending will be specialist and manually underwritten enabling us to serve those customers often shunned by the automated processes used by the larger banks.
“We expect to compete against other challenger banks and specialist non-bank lenders.”