Secure Trust pulls plug on new mortgage lending

Secure Trust pulls plug on new mortgage lending

Secure Trust Bank has confirmed it will pull the plug on new mortgage lending.

Following consultation with affected staff, Secure Trust Bank bosses have confirmed it will cease origination of new mortgage lending until conditions become more favourable.

This decision has been made in light of the current economic climate, increased competition and pressures on the housing market.

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Existing customers are not expected to be affected by the decision and will continue to have their loans administered in accordance with their general mortgage conditions.

According to a Secure Trust Bank spokesman registered intermediaries will be contacted shortly with confirmation of pipeline deadlines for cases in progress.

The spokesman said: "We would like to thank our mortgage colleagues for demonstrating the highest standards of professionalism and dedication since launch, which has been recognised by wide-ranging external recognition and awards.

"This will not affect any of our other lending businesses, including our real estate finance business which continues to grow and remains an integral part of Secure Trust Bank.

"The closure will have minimal impact on group revenue as mortgages only represent a small part of our total lending."

Speaking at the start of this year, Andrew Montlake, director of mortgage brokerage Coreco, said Secure Trust Bank looking to pull the plug on new mortgage lending was surprising.

He said: "There will be tougher conditions in the first quarter of this year until politicians sort out what they are doing with Brexit but whatever happens with Brexit the UK is good at bouncing back and adapting.

"I think lots of lenders will be having discussions about how to do lending this year.

"There is a lot of competition at the moment so it is difficult for lenders when it comes to margins."

Secure Trust Bank listed on the London Stock Exchange in October 2016.