The capital comes from new investor Hera Holdings and existing shareholder Teeside Pension Fund.

Hera Holdings is investing £40m in the firm over the next 12 months, with an intention to invest a further £40m through 2025 and 2026, which will allow GB Bank to “further boost its funding capabilities for property investments and regeneration across the UK”.

Teeside Pension Fund is investing a further £5m.

The investment will see GB Bank “rapidly grow its lending capabilities”, so it will be able to offer funding of up to £10m up to 80% loan to value (LTV).

It will also “bring extensive growth for its specialist buy-to-let [BTL] finance” with an increase in loan size, offering capital and interest or interest-only options and expanding its customer base to welcome foreign nationals, expats and portfolio landlords.

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The investment also means that GB Bank will be able to up its capacity for commercial and residential bridging, along with its commercial owner-occupier and investment mortgages.

GB Bank is forecasting that the new investment will allow it to grow its lending to £500m over the next 12 months as it rapidly expands its team and infrastructure.

The lender’s recruitment drive is well underway, which will almost double its current workforce within the next 12 months.

GB Bank became fully licensed in 2022 and, since then, has approved more than £80m in loans to support over 100 property projects in locations ranging from Northumberland to the South coast.

It has also attracted over £300m in deposits from savers for its competitive fixed term and instant-access accounts.

 

‘Primed’ to ‘champion property investment and regeneration’

Stephen Lancaster (pictured), GB Bank CEO and co-founder, said: “This is fantastic news for GB Bank and everyone who has supported our purpose and ambitions since day one, and is testament to the hard work of every single member of the team.

“We are delighted to have already helped so many brokers, property developers and investors to increase their property portfolios with our flexible funding solutions, as well as our savings customers, who have trusted us with their money and received competitive rates of return.

“This investment allows us to support even more property developers and investors with the vital funding they need whilst delivering exceptional customer service, which has been our hallmark since day one.”

He added: “Our current team have done a fantastic job in establishing GB Bank as a go-to provider for specialist property finance.

“We are primed and well-positioned to champion property investment and regeneration right across the UK as we move forward with this transformational growth for the business.”

Councillor Julia Rostron, chair of the Teesside Pension Fund Committee, said: “We have backed GB Bank’s business model and its purpose throughout its journey through full banking authorisation and on to successful operation. Having Hera Holdings onboard has significantly bolstered its lending capabilities and accelerates its future success.

“Our continued support of GB Bank is testament to its incredible progress to date and its huge future potential.”