Masthaven Bank to withdraw from UK banking market

In an announcement on its website, the bank said that as part of its withdrawal plans it will “reduce and ultimately sell” its long-term and short-term loan books and return its savings deposits to customers.

It reassured customers that it was “well-funded” and had “sufficient capital and liquidity” to repay customers by the end of 2023 or before customers’ contractual maturity dates.

Masthaven was launched in 2004 as a non-bank lender, specialising primarily in bridging loans and secured lending.

The firm went on to secure its banking licence in 2016, launching first charge mortgages in 2017 then business savings and buy-to-let products in 2018.

The bank currently offers personal savings, business savings, first and second charge mortgages, buy-to-let, bridging finance and development finance.

Leigh Bartlett (pictured), who was appointed chief executive of Masthaven Bank in 2020, said a “comprehensive strategic review” of the business had been conducted with advisers to see how it would achieve its growth ambitions.

He said: “We assessed a range of options, but all of them required a significant commitment of long-term capital and we have not been able to secure the level of investment necessary to grow the bank while serving our customers efficiently and effectively.

“I’m very proud of what the team has achieved in what is a very competitive UK banking market and I recognise this news will come as a shock and disappointment to colleagues, customers, intermediaries, and others. We will do everything we can to answer their questions and address their concerns over the coming weeks.”

He added: “I must stress that this was a strategic decision, and we are working to a detailed plan which will be implemented carefully over the next two years.”

Masthaven is working with the Prudential Regulation Authority and Financial Conduct Authority on its two-year process.