Mortgage News
Masthaven reveals mortgage plans and bank licence application
Masthaven Finance has revealed it has applied for a banking licence and plans to offer specialist mortgages and savings products by the summer next year.
The bank, which will be online only, has already secured the investment needed to meet the UK’s regulatory capital rules.
Masthaven currently specialises in bridging and secured loans with first charge mortgages making up only a small part of the business. A spokesperson confirmed first charge mortgages will become a core part of the Masthaven Bank mortgage offering.
She said: “Masthaven Bank’s specialist lending will be a broad offering covering first charge residential and buy to let mortgages, secured loans and bridging and development finance. Masthaven Bank will be developing its specialist first charge mortgage range over the coming months in conjunction with its intermediary partners.”
It plans to offer mortgages to UK borrowers which it said have been rejected by larger high street lenders with ‘rigid and uncompromising rules’.
Jon Hall, managing director of Masthaven Bank, said: “This is a hugely exciting time to launch a new retail bank in the UK. For too long, savers and borrowers have had to dance to the tune of the big banks. The Masthaven approach will be different, recognising that ‘no one size fits all’ and that everyone’s individual financial backgrounds and requirements vary.”
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Hall said the bank’s culture will be to treat borrowers and savers as individuals.
“…when it comes to mortgage lending, we don’t believe in crude tick box or computer electronic score-carding. For instance, take a customer who is currently on a very low base-rate tracker or fixed rate but who wants to extend their property with a loft conversion. To use the equity in their property they may have to refinance away from their low rate. Whereas our underwriters will make a lending decision based on each customer’s financial circumstances, along with having a wide range of mortgage options, this means we could potentially lend the cash on a capital and interest basis alongside the existing mortgage.”
Masthaven will give share options in the business to its employees. The options will be distributed throughout the business and up to 80% of current and future employees will be eligible to benefit from them.
The new bank will be majority-owned by Masthaven’s founder Andrew Bloom with the remaining ownership held by the Pears family and Masthaven’s employees.
Product details have not yet been confirmed.