Secure Trust Bank plans to stop new mortgage lending

The Bank said action is being taken in light of the current economic climate, increased competition and pressures on the housing market.

In a statement, Secure Trust said the 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.

Further information will be made available once the consultation process has concluded which is expected to be at the end of February.

Paul Lynam, CEO at Secure Trust Bank, commented: “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 whilst 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.

“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 - a fact that has recently been corroborated by wide ranging external recognition."