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Secure Trust Bank plans to stop new mortgage lending

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  • 07/01/2019
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Secure Trust Bank plans to stop new mortgage lending
Secure Trust Bank has announced plans to stop issuing new mortgage lending.

 

The lender said the move was being taken due to “current economic climate, increased competition and pressures on the housing market”.

It added that its mortgage business would continue to operate as normal through the consultation period and during the period there would be no impact on existing mortgage customers or new applications in progress.

 

Market pressures continue

Secure Trust Bank chief executive officer Paul Lynam said: “Market pressures show no sign of abating, with competition intensifying, as evidenced by increasing Loan to Value metrics and lower new lending margins.

“Having considered all of these factors, and while no final decision has been made, we are proposing to cease origination of new mortgage business until conditions become more favourable.

“This proposed course of action is consistent with our strategy of lending responsibly to build a long-term, sustainable business.”

He added that it had been a difficult decision to make and had no reflection on the staff at the firm or those it worked with in the industry.

The lender expects the consultation to be concluded by the end of February.

Last week Specialist Lending Solutions revealed that sales and marketing director Tony Hall had left Secure Trust at the start of January.

 

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