The bridging loans and short term finance provider has already completed discussions with Prudential Regulation Authority and the Financial Conduct Authority, and has submitted its banking licence application.
When open, Masthaven Bank will offer a range of competitive online fixed-interest savings products that will allow customers to customize maturity dates and interest rates according to their convenience.
It will also provide specialist mortgages for UK borrowers who don’t necessarily fit neatly into the rigid and uncompromising rules of the big, established lenders.
Masthaven Bank managing director Jon Hall said: "By being flexible in technology and product design, we will enable savers to make financial choices which better suit their goals.
"Most financial institutions offer savings products over a fixed period, whereas we will offer savings which allow customers to select maturity dates and interest rates that suit them.
"Equally, when it comes to mortgage lending, we don’t believe in crude tick box or computer electronic score-carding. For instance, take a customer who is currently on a very low base rate tracker or fixed rate but who wants to extend their property with a loft conversion. To use the equity in their property they may have to refinance away from their low rate.
"Whereas our underwriters will make a lending decision based on each customer’s financial circumstances, along with having a wide range of mortgage options, this means we could potentially lend the cash on a capital and interest basis alongside the existing mortgage."
The bank will be majority-owned by Masthaven Finance founder Andrew Bloom, with the remaining ownership held by the Pears family and Masthaven’s employees, who will be given share options in the bank.
