Masthaven has launched as a new bank in the UK with a focus on digital services, becoming the latest “challenger” to high street lenders.

The new bank will tailor loans and savings to match customers’ goals, allowing them to set their own timescale for fixed savings and apply for specialist mortgages.

The specialist lender becomes the latest new bank to open its digital doors in the UK, following the launch of mobile-focused Atom Bank earlier this year.

A number of other so-called challenger banks have recently been awarded licences from the financial watchdog, including Starling, Monzo and Tandem Bank.

Simon Kirby, the economic secretary to the Treasury, said:

We want our financial services industry to be the most competitive and innovative in the world, delivering greater choice and value for customers.

New digital banks entering the market are a key part of this vision and help to cement the UK’s leading position as a global FinTech hub.

Masthaven said its new technology gives it an advantage over traditional banks by allowing people to open an account within minutes.

The bank said its savings account allows customers to determine when it matures to the day, enabling them to save for key events such as a holiday or university fees.

Masthaven, which has been a specialist lender since 2004, aims to offer mortgages from next year, including loans for homebuyers who may not meet conventional banks’ requirements.

The bank said it will offer bridging loans from the outset, for people who are living between properties for example. The bank will also offer development finance to help smaller housebuilders.

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