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Harrods Bank suspends new mortgage business

Harrods

Harrods Bank has stopped taking mortgage applications for three months following reports of a sale.

Money Marketing sister publication Mortgage Strategy reports the world-famous department store’s banking arm offers residential mortgages between £1m and £10m and buy-to-let loans between £1m and £5m. It also handles personal loans, savings accounts and gold bullion services.

Harrods Bank declined to comment.

Sky News has previously reported that parent Harrods Group wants to sell its banking arm, which racked up pre-tax losses of more than £8.4m last year and £4.9m the year before.

Harrods Group has met with advisers to discuss disposal of the bank.

In July, Harrods Bank chief executive Peter Ball left the firm to head Together’s retail division. He was replaced by former Aldermore deputy chief executive Mark Stephens.

In May 2014 Mortgage Strategy broke the news that Harrods Bank was planning to expand into the broker market.

At the time the bank appointed former Saffron Building Society head of mortgages Peter Izard, now Investec business development manager, as head of intermediary mortgages in preparation for the launch.

Harrods first set up a banking arm in 1893, although it was known by several different names until the 1980s.

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