Secure Trust moves into mortgage sector
Solihull-based Secure Trust Bank has extended its range of service with a move in the mortgage market.
The bank said it was looking to target the large pool of people underserved by the high street lenders.
The move is a clear declaration of intent on the part of the challenger bank to become a major player in the market.
Secure Trust Bank Mortgages will be headed by managing director Esther Morley, who joined the bank 12 months ago.
Ms Morley has more than 20 years’ experience in the mortgage and banking sector having worked most recently for Kensington Group and previously for Start Mortgages, Investec and HSBC. She will spend most of her time in the firm’s offices in Bourne End.
Secure Trust Bank made its move onto the London Stock Exchange’s Main Market in October 2016, valuing the company at £427.5m. The bank said its capital and funding position remained robust and it announced total post-tax profit for the first half of 2016 of £129.1m putting it in a strong position to grow the Mortgage business.
Its new mortgages arm will be 100% committed to intermediaries and the bank has initially agreed an exclusive distribution partnership with Mortgage Advice Bureau (MAB). This means that all MAB members will have full access to Secure Trust Bank’s specialist mortgage services and all brokers will deal directly with the bank’s team of underwriters. It will roll out mortgages to other intermediaries after the initial launch period.
Secure Trust Bank will provide loans of up to £2m per household and will offer two, three and five-year fixed rate mortgages with a maximum LTV of 80%.
The bank said it would lend to customers who were often overlooked by the high street lenders including contract workers, the self-employed and those with complex incomes or those who have experienced a credit blip – at potential market of more than 5.5m people.
Esther Morley, managing director at Secure Trust Bank Mortgages, said: “There are millions of people looking to get themselves on the property ladder, move home or find a better deal with a new mortgage provider. Our offering will serve customers who don’t fit the criteria of traditional lenders. We completely understand the finance problems our customers face and will work in partnership with Mortgage Advice Bureau to ensure we are placing more complex cases easily.
“We will stand out from others in the market by providing an exemplary service with smart operating systems that will be fine-tuned to respond faster and make everybody’s life much easier. The team will be committed to offering bespoke services with a personal touch, and this will move us one step closer to becoming Britain’s best bank.”
Ms Morley has been joined by head of sales and marketing Tony Hall, who will be responsible for building the broker network for the new business. Mr Hall has spent 25 years in the industry, including his most recent role at West Bromwich Building Society as head of distribution.
Paul Lynam, Group Chief Executive at Secure Trust Bank, added: “As one of the most strongly capitalised banks in the UK, Secure Trust Bank is very well positioned to progress our entry into the mortgages market as part of our long term diversification strategy.”