This month, we are speaking to Conor McDermott (pictured), director of SME lending at LHV Bank.
How did you get into the mortgage industry?
I began my career in retail banking, gradually transitioning into corporate operations and later into credit underwriting. Over time, I found myself increasingly drawn to the client-facing side of lending, helping real businesses solve real problems through finance. That practical, solutions-based approach is where I found my passion, and mortgages became a natural progression from there.
Along the way, I’ve built up a strong background in credit risk, structuring complex lending deals, and developing commercial lending strategies. I also hold qualifications in credit underwriting and commercial lending, which have given me a solid grounding in the end-to-end lending process.
Over the last two decades, I’ve worked closely with SMEs, property investors, and trading businesses particularly in healthcare, all sectors where speed, clarity, and relationship-based decision-making are vital. I’ve also spent time leading lending teams, setting strategy, and delivering debt finance at scale, all of which helped shape my current role at LHV Bank.
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What has been your biggest learning over your career?
Working in credit during the global financial crisis was a defining moment. The lessons from that time – prudent risk management, robust due diligence, and staying calm under pressure – still shape how I approach lending today. It was a period that taught me to look beyond numbers, to understand a business in its full context, and to always consider the long-term impact of lending decisions.
But one of the more enduring lessons is about people, how teams operate under stress, how communication can break down or flourish, and how much trust matters. Whether you’re an underwriter, business development manager (BDM) or broker, lending is ultimately a people business. Relationships, transparency and shared accountability will usually determine whether a deal succeeds or stalls.
LHV Bank entered the UK market in 2018 by opening a branch in London. What was the initial attraction and where are the biggest opportunities and challenges currently?
The UK has always stood out as one of the world’s leading fintech ecosystems. It’s home to nearly 2,000 fintech firms and a deep talent pool, even post-Brexit. For a bank like LHV, with its roots in digital-first services, that made the UK market a natural fit.
The opportunities we saw and continue to see are in under-served segments, particularly SMEs and specialist property borrowers. These are areas where traditional lenders have scaled back or applied overly rigid criteria. That leaves a real financing gap, and specialist banks like LHV are well-placed to step in with tailored, relationship-led solutions.
The challenges, of course, come with navigating a complex regulatory environment and operating outside the high street banking model. But that’s where our tech-first, people-led approach really works. We’re agile enough to adapt and experienced enough to deal with the intricacies of regulated lending across sectors.
LHV Bank was created in 2021 and became fully authorised in 2023. What was the authorisation process like and do you think other firms will go down the authorisation route?
I’ve been through authorisation processes before, but achieving a full UK banking licence in May 2023 was something else entirely. It was a huge technical, legal, and regulatory effort. We had to replicate an entire core banking system, migrate clients from our UK branch to the new entity, and engage deeply with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).
The fact we completed it in just over a year is testament to the capability and focus of the team. It also showed how serious we were, and are, about establishing ourselves as a permanent fixture in the UK market.
Will other firms go down the same route? I believe so. For institutions serving fintechs, SMEs or specialist borrowers, the long-term benefits of full authorisation, in terms of greater flexibility, operational control, and brand credibility, are significant. But it’s not a light-touch process. You have to be fully committed, with the right governance and infrastructure in place from the outset.
One area that LHV Bank specialises in is commercial and semi-commercial property. Where are the biggest challenges and opportunities in this area?
The biggest opportunity lies in bridging the service gap left by high street banks. Many commercial borrowers operate in sectors or regions that traditional lenders now overlook. We’re increasingly supporting deals where clients have solid business plans, viable properties, and sound repayment strategies, but still struggle to find a willing lender.
Our approach is to assess the whole picture, not just the asset. By this, I mean the borrower’s experience, the cash flow profile, and the local market conditions. That agility allows us to structure loans that work for the real world.
On the challenge side, the landscape is evolving fast. There’s growing regulatory scrutiny, particularly around affordability and sustainability. Market dynamics are also patchy, with some regions seeing price softening while others remain resilient. That means lenders need a deep understanding of risk and a consistent pricing strategy that reflects those shifts.
Another area LHV Bank is known for is financing for SMEs and trading businesses. What is the landscape like currently in this area?
It’s an area of real momentum for us. In the first half of 2025, our loan book grew over 69%, reaching nearly £500m, with £130m issued in Q1 alone. That’s not just headline growth, it’s a reflection of sustained broker engagement and strong appetite among trading businesses for relationship-based finance.
We’re supporting a wide range of SMEs, from care homes and logistics firms to manufacturing and retail. These businesses often need tailored capital to invest in premises, equipment or refinancing, but don’t fit the narrow parameters of automated lending models. That’s where our manual underwriting and credit experience add real value.
We also maintain regular contact with our clients, so we’re proactive about reshaping facilities when needed. Especially in this higher rate environment, communication and flexibility are key.
Both these areas can be considered quite specialist. Do you think these are sectors that mainstream brokers should be looking at more?
Absolutely. The definition of ‘specialist’ is broadening, and many mainstream brokers already come across cases that fall outside standard criteria, whether that’s a trading business buying its premises or a mixed-use property with multiple income streams.
Partnering with a lender like LHV can really empower brokers in those moments. We offer hands-on underwriting, guidance from experienced BDMs, and a team mentality that’s focused on outcomes. We don’t leave brokers to figure out complex structures alone. We work through it with them.
That’s where our proposition stands out. Brokers not only get a lender that understands the deal, but one that invests time in the journey, whether it’s credit structuring, documentation, or explaining nuances to the client.
What is the current headcount of LHV Bank and are there further recruitment plans?
We now have just over 200 people across the bank, with around 20-25 directly involved in SME lending. Growth is very much on the agenda, but we’re not expanding for the sake of it.
Instead, we’re scaling selectively and investing in the right areas, especially technology. Our goal is to empower our existing teams to do more, by reducing friction and automating lower-value processes. That means our people can focus on the high-value, judgement-based elements of lending, where real expertise makes the difference.
At the same time, we’re always on the lookout for strong talent, particularly those who bring commercial lending experience and share our culture of service, accountability and innovation.
What are the strategic priorities for LHV Bank this year?
We have a number of strategic pillars over the next 12 months:
- Technology-led expansion: We’re rolling out multi-currency real-time payments, open banking integrations, card acquiring capabilities, and artificial intelligence (AI)-powered enhancements to our banking platform.
- Retail and SME growth: Our new UK retail banking app launched earlier this year, including the first new current account to hit the UK market in years.
- Loan book scaling: Having surpassed £280m in 2024, we’re now approaching £500m by the end of H1 2025, thanks to strong performance across SME and property lending.
- Fintech partnerships: We continue to support over 200 international fintech companies, providing infrastructure for payments, FX, and acquiring services. That now supports more than 10 million end users globally.
These priorities all come back to a single goal: combining innovative technology with human expertise to offer a consistently strong banking experience.
What would you want brokers, or the mortgage industry more widely, to know about LHV Bank?
That we’re a flexible, consistent, and growth-oriented partner. Brokers are not just placing deals with us, they’re working with a lender that’s fully invested in their success.
Our underwriting is robust but thoughtful. We’ll ask the right questions, challenge constructively, and then work hard to get the deal over the line. Our BDMs and underwriters are aligned, and we pride ourselves on providing a single, joined-up message throughout the process.
Our recent listing in The Sunday Times Best Places to Work 2025 – for the second year running – highlights the kind of culture we’ve built. One that values employee voice, encourages ownership, and supports teams to act decisively. That same internal strength is reflected in our broker relationships.
We also walk the talk on compliance. Rob Neal, our chief compliance officer, was named Compliance Leader of the Year at the 2025 ICA Europe Awards, recognition of both his leadership and how we embed compliance into the business.
Ultimately, we want brokers to see us as a reliable, transparent partner. One that values long-term relationships, responds proactively, and delivers consistently. Competitive rates are part of it, but our real value lies in the experience we offer throughout the journey.
