Secure Trust enters consultation to cease mortgage lending

Secure Trust Bank has started a consultation on a proposal to stop granting new mortgages.

The lender says the action is taken in light of the current economic climate, increased competition and pressures in the housing market.

The company intends to operate as normal throughout the consultation and says there will be no impact on existing mortgage customers or new enquiries.

Paul Lynam, Managing Director of Secure Trust Bank (Photo) said, “Market pressures show no sign of easing, with competition intensifying, as evidenced by rising loan-to-value ratios and declining new lending spreads. After considering all of these factors, and although no final decision has been made, we propose to cease new mortgage business until conditions become more favourable. This proposed action plan is consistent with our responsible lending strategy to build a long-term sustainable business.

Lynam says: “This has been a difficult decision to make and has absolutely no bearing on the professionalism and hard work of our mortgage colleagues, or the many organizations they partner with, – a fact that has recently been corroborated by far-reaching external recognition, including a five-star award at the Financial Adviser Service Awards.

The lender will provide more information on its next steps once the consultation process is complete, which we believe will take place at the end of February.

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 it has introduced end-of-life loans, right to buy and new build markets, with Esther Morley leading the bank’s mortgage arm as managing director.

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