Masthaven

Masthaven to leave UK banking market




Following a comprehensive strategic review, Masthaven Bank will be withdrawing from the UK banking market over the next two years.

Masthaven acquired a banking licence in 2016, but today (1st February) is communicating the news of its strategic withdrawal from the market to employees, customers, intermediaries, and other stakeholders.

The finance provider will stop the origination of new loan applications this week, and will continue to process current applications through to completion.

It is set to sell its mortgage book through a competitive tender process, which is anticipated to conclude during 2022.

Masthaven will also allow the short-term (bridging) book to run off naturally as loans are repaid, and will consider a sale of the remaining book once a buyer is secured for the mortgage book.

The bank stated that it is well-funded and has sufficient capital and liquidity to repay savings customers in an orderly fashion by the end of 2023, on or before contractual maturity dates.
  
“We have conducted a comprehensive strategic review of the business, with the support of specialist advisers, to consider how we could achieve our ambitions to grow the bank,” said Leigh Bartlett, chief executive at Masthaven Bank.
 
“We assessed a range of options, but all of them required a significant commitment of long-term capital, and we have not been able to secure the level of investment necessary to grow the bank while serving our customers efficiently and effectively.
 
“I’m very proud of what the team has achieved in what is a very competitive UK banking market and I recognise this news will come as a shock and disappointment to colleagues, customers, intermediaries, and others.

“We will do everything we can to answer their questions and address their concerns over the coming weeks.
 
“I must stress that this was a strategic decision, and we are working to a detailed plan which will be implemented carefully over the next two years.” 
 
Masthaven is working closely with the PRA and the FCA, and both organisations are aware of the bank’s plans and the measures it has put in place.

It will return all savings customers’ deposits over the next two years, either on or before maturity dates, and will reduce the range of fixed-term deposit products available to customers.

A maximum term of six months will be applied to new or retained deposits. 

 

 

 

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