The business has not sought external seed capital and carries no debt. It aims to help people working in the public sector gain access to mortgages with targeted criteria. Its mortgages will be available through brokers.
This is the next stage in Bevan Money’s journey to becoming a bank follows its pre-application in October, which is when it sought regulatory support.
Mortgages for ‘hero’ public sector workers
Mel Lane (pictured), chief executive at Bevan Money, said: “It’s very unusual for an aspiring bank to get this far without carrying a lot of debt. There really aren’t many opportunities for investors to get involved with a business at this late stage of the process and in such a strong financial position.
“We’ve managed to come this far without seeking external investment because we’ve built a small team of experienced and dedicated individuals who believe in the concept of building a bank with a unique and valuable social purpose.”
She said public sector workers provided a “great service” to the country, adding that it was “time they received the respect and appreciation they so richly deserve”.
Lane added: “We’re quick to call them heroes, but in the real world they’re more often overlooked than rewarded and this new bank is needed to support public sector workers now more than ever before.”
“Homeownership is the bedrock of most peoples’ working and family lives. Yet so many workers at the sharp edge of public service struggle to get on the housing ladder. The problem is that most lenders treat public sector workers like any other salaried applicants, with no consideration given to their strong security of employment, additional shift and overtime income, professional qualifications, experience and reliable future pensions.
“Bevan’s products and underwriting will take full account of the strengths of this large group of underserved and aspiring homeowners.”
Adding value to key workers’ lives
Colin Snowdon, board adviser, added: “It’s rare to find a management team who can cover all the bank application bases, without the input of paid for third-party advice. It’s equally unusual to come across a new bank proposition the team believes in so passionately that they’re willing to commit their time, energy and expertise with no immediate reward. This is exactly what Mel has achieved with Bevan. She comes from a family with a strong background in public service and designed Bevan to reflect that personal experience.
“The bank’s foundations will be built on mortgages secured on bricks-and-mortar homes for key public sector workers, underpinned by their vocational drive, secure income and future progression. Bevan’s lending criteria will fully reflect the details of their career prospects. It will be a lender adding real value to the lives of so many key workers, the mortgage market, and the banking community.”
