Secure Trust Bank has confirmed it will stop granting new mortgages following consultation.
The bank said it would not offer new mortgages to borrowers “until terms become more favourable” and contacted staff about it.
The current economic climate, increased competition and pressures in the housing market were highlighted as having contributed to the decision.
Existing customers should not be affected by the decision and will continue to have their loans administered in accordance with mortgage terms and conditions, STB said.
He adds that registered intermediaries will be contacted shortly with confirmation of the processing times for current files.
The bank thanked colleagues in the mortgage industry for “demonstrating the highest standards of professionalism and dedication since launch”
Secure Trust entered the mortgage market in March 2017 with the intention of offering mortgages to those underserved by traditional lenders, such as the self-employed.
Since then he has introduced end-of-life loans, right to buy and new build markets, with Esther Morley (Photo) leading the mortgage arm of the bank as managing director.
The cessation of mortgage lending will not affect any of STB’s other lending activities, including its real estate financing activity.
It says the closure will have minimal impact on the group’s revenue, as mortgages make up only a small portion of its total loans.