Masthaven is a modern bank which prides itself on combining digital technology with a human touch. At Masthaven, the emphasis is always on the customer - their customer charter makes clear that everything they do is centred on ensuring that each and every feels customer valued and has their needs met.
Masthaven are part of a growing trend amongst independent banks, and are one of the leading lenders in the market today. Their extensive experience within the industry coupled with their forward-looking attitude and flexible outlook allows them to provide top-quality financial services for a range of requirements. In this article we’ll explore what Masthaven does and why its services are so in-demand amongst consumers.
Masthaven is a relatively modern bank - there are no Florentine Renaissance roots here, nor any Industrial Revolution-era foundations; instead, Masthaven has been put together purely to meet the needs of today’s consumers. Starting in 2004, Masthaven was created around the same time as the digital revolution - this bank has always been keen to use every tool at its disposal, and with digital technology coming of age during the early 2000s was able to connect brokers and borrowers in new ways.
Masthaven began life as a private lender, rather than a public commercial bank. Initially, the bank focused on providing secured lending and bridging loans, a highly specialised and fast-moving form of lending (bridging loans can be in the millions of pounds, and in exceptional circumstances may need to be arranged overnight). Over the following decade, Masthaven enjoyed considerable success with its private lending, eventually growing to become a potent force within the financial marketplace.
In 2016, Masthaven was granted a banking licence - the first new bank to be awarded one. This allowed the bank to bring its streamlined, highly desirable services to the public consumer market, where their commitment to customer service combined with excellent digital infrastructure has enabled them to provide an unparalleled product range. Masthaven offers the quality of private banking to the public sector, and makes it easy for borrowers and savers alike to access top-notch financial services.
Masthaven offers a wide range of products for various different needs. The Masthaven product range is focused around their core financial services, and reflects the bank’s history as a private bridging lender; customers can secure property loans through mortgages or bridging, and invest their money for the future in fixed bonds.
We’ll explore the different options available from Masthaven, along with a description of how they can be used to help consumers.
Masthaven’s savings products are designed to meet the needs of many different savers, rather than providing a simple set of static options. With the growing diversity of the UK’s savings sector, it’s vital that Masthaven’s products are flexible and can be adapted to suit a number of different purposes.
Key to the Masthaven product range are their fixed-term bonds, which can be selected in 1, 2, 3 or 5 year variants. These enable savers to maximise their earnings from each pound they save, and generally offer a more rewarding return on investment than simply sinking money into a current or savings account. Interest can be paid monthly or annually, according to the saver’s preference.
Masthaven’s flexible-term savings products are much more flexible than standards bonds because they can be arranged for any length of time that the saver requires. Masthaven’s flexible term savings product allows savers to select the amount of time that best suits them, anywhere between 1 - 60 months. The interest rates on offer grow with the length of the bond, which allows savers to pick the right combination of time and reward for their needs. This innovative approach to fixed-term saving reflects the Masthaven attitude towards customer service - Masthaven always consider how to provide what their customers need.
As we’ve highlighted already, Masthaven has its roots as a professional bridging lender and secured loan provider. This background in a highly competitive, highly pressurised industry has made Masthaven an extremely skilful lender, able to appraise market conditions and offer reliable, high-quality products that match consumer needs. This background also means that Masthaven can provide firm decisions in a short space of time; when your clients expect you to turn loans around in a matter of days, it’s important to act fast.
Bridging finance is a specialised lending product that’s often used within the property development industry. It’s so-called because it’s used to “bridge the gap” while a long-term source of finance is put into place, so the most common use for this type of lending is to complete the purchase of a property without having to wait for a mortgage. There are other uses, though, and bridging loans are a highly flexible type of loan - they allow the borrower to circumvent cashflow problems and are often used to resolve estates, construct property and meet large expenses.
The major benefit of bridging finance for many borrowers is the flexibility and speed with which it can be obtained. Firstly, bridging loans can be obtained when a mortgage can’t be, which means it’s a good solution for the purchase of properties that can’t be mortgaged. Homes which are in poor repair, for example, or those with a short lease - mortgage lenders won’t touch them with a bargepole, but Masthaven’s bridging finance team are able to expertly appraise these properties and ascertain whether they’re a solid investment or not. This flexibility enables borrowers to secure finances for a wide range of opportunities, rather than being tied to the criteria of a mortgage supplier.
Secondly, the speed at which bridging lenders like Masthaven work is a major attraction of bridging finance. While a mortgage application may take several weeks to undergo the extensive underwriting process, a bridging lender typically streamlines this process into just a few days. Many bridging lenders pride themselves on the speed with which they can resolve a bridging loan application, and their ability to take a loan from application to completion in a short space of time often makes them an attractive lender. In property development, it may well be necessary to act quickly before an opportunity slips away, in which case a bridging lender that can act quickly to provide the necessary funds is absolutely vital.
Bridging loans are similar to mortgages in that they’re secured against property. This allows lenders to supply large amounts of money, since they can reclaim their loan through the sale of the property if the borrower should fail to repay. However, bridging loans differ from mortgages in that they’re typically unregulated; the Financial Conduct Authority does not set out conditions by which bridging lenders must abide, and they’re free to set their own terms. This means that most bridging lenders cannot offer their loans as a method to purchase an owner-occupied property, as this is strictly controlled by the FCA. However, Masthaven is a regulated lender, and this enables them to provide loans for private residential use, as well as commercial and investment purposes.
Masthaven’s bridging loan products come in several different varieties, catering to different borrower requirements. By segregating their products across several different ranges, Masthaven are able to provide precisely-targeted lending solutions that fit the needs of particular groups of borrowers.
Prime First Charge> - these bridging loans are targeted at the simplest, most straightforward bridging customers. For borrowers who have a spotless financial record, and are purchasing a residential property in good repair, this range of loans is ideal. This provides access to a higher level of LTV in comparison to Masthaven’s other loans, which reflects the straightforward nature of customers suitable for this product.
Standard First Charge - Masthaven’s “standard” bridging loans are a much more flexible product than their “Prime” range, and cover many of the uses to which bridging loans are typically put. This includes properties with a short lease (above 50 years) and properties in need of refurbishment - this platform also accommodates borrowers who have a less-than-spotless financial history, though this will depend on the particular borrower’s circumstances. The consequence of this greater flexibility is a lower available LTV, a reflection of this loans riskier nature.
Prime Second Charge - This product is similar to the “Prime” First Charge loan listed above, but for use on properties that already have an existing charge - this enables borrowers to take out a bridging loan even if they haven’t paid off their mortgage. The criteria for this loan are the same as for the first charge variant, with a lower LTV.
Standard Second Charge - This loan addresses the same needs as the “Prime Second Charge” product, but has a greater degree of flexibility. A wider range situations may be considered for this product, but Masthaven offers a lower LTV on loans in this range.
Commercial Bridging Loans - Masthaven’s commercial bridging loans are intended to cover the short-term financial costs of purchasing a commercial or semi-commercial property. These loans can be obtained for a variety of term lengths, and in amounts between £100,000 to £1,000,000.
Masthaven bridging loans are an excellent choice for borrowers who require a flexible solution that can be tailored to their specific needs. What sets Masthaven apart from the crowd in the bridging sector is their attention to detail, and their market-leading product range. Few lenders can boast products as impressive as Masthaven’s and it’s testament to their years as a specialist private lender that they can still offer such an excellent range of products to the general market.
A major part of Masthaven’s product range is their selection of mortgage products, and just as with their bridging products Masthaven is able to offer a wide array of options to suit borrowers of all types. The Masthaven mortgage product range is diverse, and caters to many borrowers who struggle to find mortgages from mainstream lenders - Masthaven’s ability to offer high-quality mortgage solutions to these borrowers makes them extremely attractive to customers who are tired of high-street lenders.
First Charge Residential Mortgages - This is the “standard” mortgage; a secured loan against an owner-occupied property, used either to facilitate its purchase or as a re-mortgage. Masthaven offers extremely competitive terms on its residential mortgage products, along with a variety of fixed, discount and tracker periods. Masthaven’s mortgage range is flexible, and can accommodate many different borrowers, but it’s important to bear in mind that this lender does not seek to offer the extremely high LTVs on offer from mainstream banks. The 95% LTV mortgages that can be found on the market are often punitively expensive for borrowers, and Masthaven’s decision to offer quality mortgages, even at a lower LTV, reflects their commitment to customer satisfaction.
Buy-to-Let Second Mortgages - The UK’s Buy to Let market has been an attractive choice for many investors over the years, and there is a constant demand for high-quality financial services in this sector. Masthaven provides a second-charge mortgage option for BTL owners which allows them to leverage their existing properties and expand their portfolio. For many professional property developers this is a highly valuable option, as it enables them to increase their property holdings without having to invest a large amount of capital. Masthaven’s experience and deep understanding of the property development industry allows them to take a view in many cases where mainstream lenders will not, making them an excellent choice for professional developers as well as residential borrowers.
Mortgages can be an intimidating prospect for buyers who don’t necessarily fit the profile of large banks. It can be very difficult for anyone who doesn’t match up to a lender’s idea of a perfect borrower to actually obtain a mortgage, which is why the products on offer from Masthaven are so vital. Their ability to offer flexible products and their holistic approach to each customer enables Masthaven to provide mortgages that meet the needs of those mainstream banks can’t help.
Masthaven’s development finance products are divided into two main categories; Light Development and Development Finance. This distinction allows Masthaven to better meet the needs of developers with different situations, rather than forcing all their customers to meet a certain set of criteria.
Development Finance - Full development finance is used to fund ground-up construction. This can be for projects of any type, and Masthaven is able to take a view on projects from barn conversions to self-builds. Development finance is usually provided in “tranches”, which allows the lender to control the flow of capital into a project - this ensures that they only supply money as work is completed and the value of the property increases. Masthaven is able to supply 100% of a project’s build costs in this way, and will be able to contribute to the purchase price of land (borrowers are typically expected to finance the purchase of land themselves).
Development finance is a highly competitive sector of the financial industry, and Masthaven is able to compete because its products are of such a high quality. By providing a standalone light development product Masthaven is able to offer a bespoke solution to borrowers who don’t need their full development services, and this helps Masthaven to offer swift, affordable solutions to those who need them.
Masthaven is a highly adaptable lender, and while it may only have “gone public” recently it’s already made impressive inroads into the market. Thanks to their tireless work ethic, relentless commitment to customer satisfaction and extensive experience within the industry, Masthaven has been able to provide a product range that’s both varied and well-targeted, meeting the specific needs of many different areas of the lending market. The lender’s dedication to synergising emerging technology with their human approach has paid dividends, and they are emerging as the top choice for borrowers who are tired of being put through the mill by mainstream banks.
Our mortgage brokers offer mortgage advice on a wide variety of mortgages, more detailed information about the different mortgages can be found below.