Jon Hall, director at Masthaven Bank (pictured), explained that the lender will distribute its products through intermediaries only and focus on a proposition that is “customer-led and flexible”.
He said: “We’re operating under three lending divisions; first and second charge mortgages, bridging and renovation and development and self-build. Our approach is that different doesn’t necessarily mean risky.”
Last week Masthaven secured its retail banking licence to offer mortgages and savings products as an online bank. The firm, previously Masthaven Finance, has built up a name for itself in bridging and secured loans sector, with first charge mortgages making up only a small part of the business.
For residential owner-occupier deals, the lender intends to offer a broad range of self-employed products and options for borrowers with complex income and credit considerations. For the buy-to-let market, Masthaven will target the professional investor, including those investing under limited companies. Hall added that lending into retirement was also a potential target market for the brand.
He said: “Lenders need to be able to look beyond the credit score and be flexible and tailor what the offering for the intermediary market and borrowers as well.
“We’re quite happy with a maximum loan-to-value (LTV) that sits around the 80% mark for first charge deals as there’s plenty of opportunity to be flexible on criteria and customer types within that range.There’s also limited opportunity for borrowers on longer-term fixes within the specialist market at present, so I do see that as an area where we can offer something different to customers.”
To ensure that its existing service level is maintained, Masthaven will make deals available to brokers on its current panel before expanding distribution. Firms currently on Masthaven’s panel include John Charcol, Savills Private Finance, Brightstar and Y3S.
Hall said Masthaven is in the process of finalising its procuration fee structure for brokers.
“At the moment what we’re considering is the appropriateness of proc fees that recognise further advances as well as new business and potentially proc fees for retention,” he added.
“We want to make sure that this a partnership with our intermediaries and that their appropriately remunerated for their efforts.”