Secure Trust Bank (STB) has proposed suspending new mortgage lending, as rising competition pushes up loan-to-value and lowers margins across the market. An employee consultation is under way, with a decision expected before the end of February.
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The alternative lender launched its mortgage business in 2017, shortly after ceasing to write new sub-prime motor finance business and unsecured personal loans as part of a shift towards lower-risk areas of lending. Mortgage balances had risen to £37.3m by the end of June, with a conservative average loan-to-value ratio of 59 per cent.
