Secure Trust Bank has entered into consultation on a proposal to cease origination of new mortgage lending.
The specialist bank has taken this step in light of the current economic climate, increased competition and pressures on the housing market.
Paul Lynam, CEO at Secure Trust Bank (pictured above), felt market pressures showed no signs of abating, with competition intensifying, as evidenced by increasing LTV metrics and new lower 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.”
The bank’s mortgage business will continue to operate as normal through the consultation period and there will be no impact on existing mortgage customers or new applications in progress during this time.
“This has been a difficult decision to take and has absolutely no reflection on the professionalism and hard work of our mortgage colleagues or the many organisations they work in partnership with,” added Paul.
Further information will be made available once the consultation process has concluded, which the bank anticipates will be at the end of February.
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