UK bank eyes entry into the mortgage market

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Secure Trust Bank is considering an entry into the UK mortgage market.

The Solihull-based lender says it has hired a team to explore the idea of entering the market.

In its interim results, published last week, it said: “We remain open to the possibility of competing in the UK mortgage market and have hired a team to undertake a detailed study to establish if we can build a sustainably viable proposition in this market alongside some of the other challenger banks.

“In particular we have been awaiting the outcome of the first Budget of the new government and are now factoring the announcement in respect of tax relief changes on buy-to-let mortgages into our deliberations.”

The bank, which is listed on the Alternative Investment Market and is a subsidiary of the Arbuthnot Banking Group, made a £16m pre-tax profit in the first six months of the year, up 40 per cent year-on-year.

Its income in H1 reached £62.2m, up from £43.8m in the first half of 2014.

Presently, Secure Trust Bank offers a range of personal, motor and business loans as well as current accounts and real estate development products.