Masthaven Bank secured loans
Masthaven Bank provides second-charge mortgages of £10,000 to £500,000 to UK homeowners and property investors, including those with a poor credit history.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.
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).
Compare Masthaven loans
Table: sorted by overall cost for comparison (representative APRC)
Updated April 7th, 2020
Overall representative example
If you borrowed £41,000.00 over a 14-year term at 8.89% p.a. (variable), you would make 168 monthly payments of £479.45 and pay £80,547.60 overall, which includes interest of £34,557.60, a broker fee of £3,995.00 and a lender fee of £995.00. The overall cost for comparison is 11.6% APRC representative.
If you borrowed £41,000.00 over a 14-year term at 8.89% p.a. (variable), you would make 168 monthly payments of £479.45 and pay £80,547.60 overall, which includes interest of £34,557.60, a broker fee of £3,995.00 and a lender fee of £995.00. The overall cost for comparison is 11.6% APRC representative.
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 £10,000 to £500,000. Masthaven Bank will lend up to 75% of the value of your property, less your outstanding mortgage.
- Repay over terms of 3 to 35 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. You will, however, have to prove you can comfortably afford the repayments.
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.
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 18. You must be aged under 85 at the end of your loan term
- Be a homeowner
- Live in England, Scotland or Wales
- 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 £100,000 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. They will then recommend a loan that is most suitable for your circumstances. They 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.
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 are a wide range of car finance options you could consider.
Frequently asked questions
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