What is Masthaven Bank?

Previously known as Masthaven Finance, Masthaven Bank began life as a private lender in 2004. In 2016 it became the first new bank to be granted a banking licence. The lender says its modern digital infrastructure combined with excellent customer service is what sets it apart from its competitors.

Is Masthaven Bank safe?

Masthaven bank is regulated and authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority (FCA). Your eligible deposits are also protected up to £85,000 by the Financial Services Compensation Scheme (FSCS). Plus, it’s regulated under GDPR and data protection laws.

What types of loans does Masthaven Bank offer?

Masthaven Bank offers both first-charge and second-charge mortgages, as well as bridging finance and buy-to-let loans. However, Masthaven secured loans are only offered through accepted mortgage brokers and are not offered directly by Masthaven Bank.

What is a second-charge mortgage?

Like your existing (first-charge) mortgage, a second-charge mortgage is a type of loan that is secured against your home or property. You must think carefully before taking out a second-charge mortgage, as your property will be at risk if you don’t keep up repayments.

Masthaven Bank offers second-charge mortgages on both residential homes and buy-to-let investment properties.

Key features of a Masthaven Bank loan at a glance

• Borrow £0 to £0. Masthaven Bank will lend up to 0% of the value of your property, less your outstanding mortgage.
• Repay over terms of 0 months to 0 years. Choose a repayment plan to suit your budget.
• Variable or fixed rates. You can choose to fix your interest rate for a set term to help you budget.
• Interest-only option. If you are a buy-to-let owner you can choose for your repayments to pay off only the interest of your loan. The full loan will be repaid using profits from the sale of your investment, or you must have another method of repayment.
• Security. Your property will be used as security on your loan. Missing repayments will put your property at risk, so always ensure that you can afford the loan you are asking for before you apply.
• Self-employed, contractors and short work histories considered. Masthaven Bank will primarily consider your ability to afford the repayments for the length of the term.
• Poor credit histories considered. You may still be accepted for a loan if you have a less than perfect credit score. However, you will have to prove you can comfortably afford the repayments.

What can I use a Masthaven Bank loan for?

You can use a Masthaven secured loan for any worthwhile purpose, including to cover the cost of a large purchase or expense such as a car, home improvements, a holiday, medical procedure or wedding.

Pros and cons of Masthaven Bank loan

Am I eligible for a Masthaven Bank secured loan?

Whether you’re improving your home, paying for a wedding or consolidating debt, you should only apply for a Masthaven Bank secured loan if you are certain you can meet the repayment terms. You must also meet the following criteria:

How do I apply?

1. Masthaven Bank does not sell its second-charge mortgages directly to customers. They are only available through a number of mortgage brokers, or “intermediaries”, who specialise in this market. You can contact Masthaven Bank to find a suitable company to apply through.
2. The broker will ask you about your circumstances and finances and about your requirements. It will then recommend a loan that is most suitable for your circumstances. It will also be responsible for arranging your loan.
3. Your intermediary should explain the terms and conditions of the loan, as well as what the various documents mean. You should always ask for an explanation if you don’t understand any part of your second-charge mortgage agreement, including the terms and conditions.
4. Once you have understood and signed your loan agreement, Masthaven Bank will transfer the funds to your bank account.

Masthaven Bank customer reviews

Online customer reviews are for Masthaven as a Bank, but include its loans service (updated 9 April 2021):

The bank’s savings account and flexible deposits are favourites with customers, but some report difficulties in opening their accounts or taking out a loan (with bridging loans seemingly extra troublesome).

Alternative options

Before taking out a homeowner loan, you should consider all of your options carefully. Other ways of borrowing large sums include:

• Remortgaging.Remortgaging is when you switch to a new mortgage, with the same or a new lender. In the process you can renegotiate the loan – potentially releasing equity.
• Unsecured personal loans. If you have excellent credit and would be able to afford it, most lenders offering unsecured loans will stretch to £25,000, or in some cases £30,000. Some big high-street banks will go up to £50,000 for existing customers, but again, you’ll need to get through the affordability and credit checks.
• Car finance. If you need money to buy a new vehicle, there is a wide range of car finance options you could consider.

Our verdict

Masthaven Bank offers secured loans for homeowners looking to access the equity they own in their property. While it has relatively low loan amounts, it does offer flexible loan terms, including both fixed and variable rates, as well as interest-only options and loans for those with bad credit, which may make it suitable for homeowners looking for a flexible secured loan.

Frequently asked questions

• What if my circumstances change and I am no longer able to make the repayments?

  If you find yourself in this position you must contact Masthaven Bank as soon as possible. It may be able to help you come to an arrangement that is more manageable for you. Please be aware that missing payments, or paying late, can affect your credit rating and make it more difficult for you to borrow money in the future.

• I am self-employed with a complex income. Will I still be considered for a loan?

  Yes. Masthaven Bank specialises in providing second-charge mortgages to people in this position. Whether you’re employed or self-employed, its underwriters will review your income for stability and consistency. They will take time to verify that the repayments for the loan are affordable in your circumstances. Masthaven Bank believes that having a clear understanding of the financial accounts of the borrower is crucial. That’s why all of its underwriters are accountant-trained. It also has specialist accountants with lending mandates, who are ideally placed to deal with more complex cases.

• How do I make the repayments?

  Monthly repayments are taken on the agreed dates directly from your bank account as a direct debit.

• Can I repay my loan early?

  Masthaven Bank does allow you to settle your loan early, but you will be charged a fee for doing this.

• Is Masthaven Bank safe?

  Yes. Masthaven Bank is covered fully by the Financial Services Compensation Scheme (FSCS), meaning that eligible deposits up to £85,000 are protected. However, deposits exceeding this amount are unlikely to be covered.

• Is the Masthaven Bank site secure?

  Yes, pretty secure. Masthaven Bank uses TLS/SSL to serve its web pages and a secure cryptographic algorithm to hash passwords to ensure data is protected.