8th Jan 2019 12:20
LONDON (Alliance News) - Secure Trust Bank PLC said Monday it will cease all new mortgage lending until "conditions become more favourable".
The retail and commercial bank said the current economic climate, increased competition and continued uncertainties in the wider housing market have put the mortgage industry "under huge pressure".
As a result, STB said it is proposing to cease origination of new mortgage lending until it feels conditions are more suitable.
The lender said its mortgage business will operate as normal through a period of consultation. STB stressed the proposal will not impact existing mortgage customers.
STB's Consumer Mortgage division, launched in March 2017, held a GBP16.5 million balance at the end of 2017. For the six months to June 30, the lender's Consumer Mortgage division generated GBP21.3 million in new business with a GBP37.3 million balance.
The bank did warn of increased competition in its interim results and third quarter update. At the time, STB said ongoing uncertainty surrounding Brexit will lead to a continuation of its "selective" policy in respect to new lending activities.
STB's Consumer Mortgage division offers customers, whose personal circumstances "do not fit the norm" but are still credit worthy individuals with good affordability, fixed rate mortgage products.
Shares in Secure Trust Bank were up 1.5% Tuesday at 1,180.00 pence each. In the past twelve months, STB's shares are down 36%.
Related Shares:
Secure Trust