Masthaven Bank: how do its savings accounts, loans and mortgages compare?

Masthaven Bank isn't as well-known in the new wave of challenger banks. The fixed-rate savings bonds have earned the bank a firm place in the best buy tables, but it's the tailored savings bonds that really make it stand out from the rest. Here's everything you need to know.

Who is Masthaven Bank?

Masthaven was the first new bank to be awarded a banking licence in 2016, but it has actually been lending since 2004.

Everything is done online, so you can be approved for certain products like savings accounts within 10 minutes.

It prides itself on good customer service and, although it doesn't have any branches, it claims your call will always be answered by a human being rather than an automated message.

Are its savings accounts competitive?

Masthaven Bank offers a few different products, some of which are quite niche, but the fixed-rate savings are it's most competitive.

The bank also lets you build your own savings product, choosing how many months you want to save for and how much you want to set aside, which is a nice option. 

Generally speaking, you’ll get a more competitive deal on the shorter-term savings than the longer ones.

Let’s kick off with the best 18-month fixed-rate savings accounts right now.

*Expected profit rate

There's also a one-year offer at 1.25%, but it pales in comparison to the market-leading rate of 1.8% from Atom Bank.

Check out how the two-year fixed-rate savings account stacks up against the competition.

It doesn’t perform as well against its rivals on the three-year savings accounts.

It still holds its own in the five-year fixed-rate offerings.

*Expected rate

Compare more savings accounts on loveMONEY

What about its other products?

Masthaven's other products are more niche. 

It doesn't do standard mortgages, but it does offer second charge mortgages for people who are looking for additional funding without affecting their current loan.

A second mortgage allows you to use any equity in your home as security against another loan.

They’re an option if you’re struggling to get approval for another type of loan such as a personal loan, perhaps because you’re self-employed or your credit rating has suffered.

It’s also an option if you have high Early Repayment Charges (ERCs) and it’s cheaper to get a second mortgage than it is to remortgage.    

The second charge mortgages are available on residential and buy-to-let properties.

Residential mortgages can be taken out over two, three or five years with a maximum LTV of 75% and rates that begin at 4.24%.

The buy-to-let offering is similar, with two-, three- and five-year lifetime tracker rates on a maximum value of 70%. Interest-only loans are available on the buy-to-let offering too.

It does plan to start offering first charge mortgages in 2017.

Masthaven can also give you short-term bridging loans on first and second charge mortgages or if you have a grand project in mind you can get a development loan of up to £2,000,000 on self-builds.

Compare residential and buy-to-let mortgages with loveMONEY

Is my money protected?

You’ll be protected under the Financial Services Compensation Scheme (FSCS). That means that your first £85,000 investment is safe, even if the bank goes bust. 

Masthaven Bank not for you? Compare a whole host of other savings accounts with loveMONEY today.