New bank launch promises to boost the UK property sector

LONDON , Aug. 17, 2022 /PRNewswire/ -- The property sector across the UK is set for a £3bn boost as specialist bank GB Bank officially launches after receiving its full UK banking licence.

The banking licence allows Middlesbrough-headquartered GB Bank to start driving its ambitious plans forward. It has committed to lend £3bn over five years. The funding will support the creation of over 100,000 jobs, 20,000 new homes and several million square feet of office space.

Savers will also benefit as the bank will offer a range of fixed-term saving products with competitive rates. In addition, savings are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000, and the funds will be directly linked to the local community developments.

Stephen Lancaster, CEO of GB Bank, said: "We are absolutely delighted to officially launch GB Bank! I'm incredibly proud of the entire team's hard work, which has enabled us to achieve the fantastic milestone of securing our full UK banking licence. Everyone at GB Bank is raring to go and can't wait to see, first-hand, the positive impact GB Bank will make to the communities across the UK."

GB Bank has put the renewal and growth of regional communities at the heart of its lending policy. It will provide accessible, bespoke property development loans with competitive fixed interest rates whilst committing to using local professional advisors, encouraging local employment opportunities and driving positive benefits in communities across the UK that need it most.

Paul Rippon, Chairman of GB Bank, said: "GB Bank is bringing something truly unique to the market, and it's hugely rewarding to know the future of communities across the UK will directly improve due to our work. The funding will build new homes and offices to reinvigorate communities and create jobs supported by secure and competitive saving accounts.

"GB Bank is only the second UK bank to launch this year, which demonstrates how incredibly challenging launching a bank is! The team deserves huge credit, and we are excited about what the future holds."

The Teesside Pension Fund (TPF) is GB Bank's cornerstone investor. It has invested £48m to support the bank's growth plans and its goal of driving economic growth and reinvesting in local communities.

Ben Houchen, Tees Valley Mayor, said: "I am extremely pleased to welcome the launch of Teesside, Darlington, and Hartlepool's first homegrown bank.  The launch of GB Bank is a huge step forwards in levelling up our region and truly represents the ambition of our area.

"The headquarters in Middlesbrough's Centre Square is already bringing good-quality, well-paid jobs. By bringing the bank's HQ to Middlesbrough, it shows that you don't have to leave the place you love and call home to forge a rewarding career in finance and professional services."

GB Bank will provide property development loans of between £500,000 and £5 million, with lending supporting regional property developers, small and medium-sized businesses, and construction companies.

Neil Williams, Chief Lending Officer at GB Bank, said: "Developers are facing numerous challenges such as increasing material costs, access to land and difficulty sourcing and retaining labour. We are helping by working with them to provide quick lending decisions to better enable them to commit to purchasing land, providing competitive fixed interest rates so they can more accurately calculate funding costs together with providing connections to a property ecosystem with local, professional advisors.

"All our loans are tailored to individual developers' needs and requirements. The Relationship Managers and Credit Partners are based locally meeting with the developer early in the development appraisal to ensure their needs are identified.  This local decision-making ensures that the developer is quickly and efficiently supported throughout their lending journey. We have a real passion for the region and look forward to putting that knowledge and enthusiasm into supporting regional communities that need it most."

GB Bank is a new specialist bank headquartered in Middlesbrough which was granted its full UK banking licence on 16^th August 2022.

For more information and to follow our journey, please visit www.gbbank.co.uk

Pictured: Stephen Lancaster, CEO of GB Bank.

About GB Bank
GB Bank is a new specialist bank.  A bank with a purpose. It is a force for good, committed to boosting economic growth and prosperity for underserved regions of the UK.  Driving a positive change by being at the heart of a property development eco-system, dedicated to regenerating communities across the UK.

Photo - https://mma.prnewswire.com/media/1880060/GB_Bank_CEO.jpg