Masthaven obtained a banking licence in April 2016. Since then it has been building up its team to offer loans to areas of the market it did not serve under the Masthaven Finance brand.
Its mortgage range will be launched in early 2017 with a second charge pilot already underway. A full second charge range is expected to be launched next year.
Development finance is a market sector the bank intends to focus on more heavily as a challenger. With former Regentsmead CEO James Bloom heading up the development finance division as managing director, it will offer loans of up to 50% on purchases, up to 100% of build costs, and up to 60% of the gross development value including rolled up interest. It will also lend on refurbishments where there is structural work or change in either use or number of units required.
The bank will continue its focus on bridging lending with a refreshed range of products.
Residential bridging products will include:
- First charge bridging loans – suitable for owner occupied or property investors, from £100,000 to £5,000,000
- Second charge bridging loans – designed for anyone looking for second mortgage residential and investment property, from £100,000 to £1,000,000 over terms from one to 12 months
- Renovation and refurbishment bridging loans – often used when high street funding for refurbishing or finishing is difficult to secure because of the current condition or state of the property
In the commercial bridging sector the bank will offer first and second charge bridging loans, designed to be used to buy commercial property including shops and offices, until long-term finance can be arranged.
Jon Hall (pictured), managing director of Masthaven, said: “Today marks the beginning of an exciting new chapter in our journey, and I am delighted to open the digital doors of this fantastic new challenger bank.
“We know everyone has different financial needs and that’s why we are providing products that our customers want, not just products that banks have always had available. Our unique blend of human digital banking combines intelligent people who really care, with technology to ensure both customers and brokers can interact with us in the way that suits them. We are proud to be part of the banking revolution – looking beyond convention to give individuals what they want from their bank.”
Masthaven operates an owner-managed model and 80% of its employees are shareholders in the business. Since securing its retail banking license in April the bank has built a team of almost 100 employees.
Speaking to Mortgage Solutions in April, Hall said the bank would in due course cater for the owner-occupier market with a broad range of products for self-employed borrowers and options for those with complex income and credit considerations. It also plans to target the professional buy-to-let investor.
Commenting on the bank’s launch, Simon Kirby, the economic secretary to the Treasury, said: “We want our financial services industry to be the most competitive and innovative in the world, delivering greater choice and value for customers. New digital banks entering the market are a key part of this vision and help to cement the UK’s leading position as a global fintech hub. I am delighted that Masthaven is now open for business and look forward to seeing it flourish as a new player in retail banking.”