Masthaven Bank to leave the UK and sell its mortgage portfolio

Masthaven has announced that he will exit the UK banking market within the next two years.

The lender has confirmed that it will sell its mortgage portfolio through a tender process, which is expected to conclude this year.

The decision to pull out of the UK was made because the bank was unable to secure the long-term capital investment it needs to operate effectively.

Masthaven was founded as a non-bank lender in 2004 and acquired a banking license in 2016. All associated employees, intermediaries and stakeholders hear the news today.

The lender will reduce and eventually sell its long-term and short-term loan portfolios and return all savings deposits to customers. It claims to be well funded and have enough capital and liquidity to repay savings customers in an orderly fashion by the end of 2023, at the latest on contractual maturity dates.

Masthaven Bank Chief Executive, Leigh Bartlett, said: “We have conducted a comprehensive strategic review of the business, with the support of specialist advisors, to determine how we could achieve our growth ambitions for the bank.

“We evaluated a range of options, but all required a significant commitment of long-term capital and we were unable to secure the level of investment needed to grow the bank while serving our customers in a meaningful way. effective and efficient.

“I am very proud of what the team has achieved in a very competitive UK banking market and recognize that this news will be a shock and disappointment to colleagues, customers, intermediaries and others. We will do our best to answer their questions and address their concerns over the coming weeks.

“I must stress that this was a strategic decision, and we are working on a detailed plan which will be implemented carefully over the next two years.”

In a note to brokers, the bank confirmed that all mortgage and bridge products will be withdrawn from sale tomorrow (February 2), with February 4 being the deadline for mortgage and bridge decisions accepted in principle.

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