Masthaven Bank doesn’t offer secured loans directly to customers – you apply through one of its trusted brokers (which will receive a fee for its services).
If you borrowed £35,000 over a 14-year term at 8.95% p.a. (variable), you would make 168 monthly payments of £418.88 and pay £70,371.84 overall, which includes interest of £30,326.84, a broker fee of £3,550.00 and a lender fee of £995.00. The overall cost for comparison is 11.8% APRC representative.
What's in this review?
- What is Masthaven Bank?
- What types of loans does Masthaven Bank offer?
- What is a second-charge mortgage?
- Key features of a Masthaven Bank loan at a glance
- What can I use a Masthaven Bank loan for?
- Pros and cons of Masthaven Bank loan
- Am I eligible for a Masthaven Bank secured loan?
- How do I apply?
- Masthaven Bank customer reviews
- Alternative options
- Our verdict
- Frequently asked questions
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
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
- Flexible loan terms
- Fixed and variable rates available
- Poor credit histories considered
- Only offered through brokers
- Smaller loan limits
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:
Residential second-charge mortgage:
- Be aged over 21, or 25 if self-employed. You must be aged under 85 at the end of your loan term
- Be a homeowner
- Be a UK resident having lived in the UK for a minimum of 3 years
- Be employed or self-employed. Masthaven Bank will also consider you if you are a contractor or have a short work history
- Have a minimum income of £12,500 per year
Buy-to-let second-charge mortgage:
- Be aged over 18. You must be aged under 85 at the end of your loan term
- Be a homeowner
- Live in England, Scotland or Wales
- Have a rental income of at least 125% of your monthly repayment amount
- Have a minimum property value of £100,000
How do I apply?
- 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.
- 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.
- 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.
- 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 5 June 2020):
4.5 out of 5
3.3 out of 5
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).
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.
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
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