FEATURE
A brighter outlook ahead
Stephen Lancaster , co-founder and chief executive officer at Middlesbrough-based GB Bank , looks at reasons to be optimistic for the year ahead
Bright outlook – GB Bank Cofounder and chief executive officer Stephen Lancaster .
As anyone who has ever started a business will tell you , there is never a “ best time ” to launch a new venture .
There will always be something that spoils the picture , no matter how well prepared you may be or how thoroughly worked out your business plan is .
As one of the UK ’ s newest banks , focused on supporting SME property developers and investors , having the Bank of England base rate at a 15-year high of 5.25 per cent and fixed-rate mortgages averaging around the 6.3 per cent mark would not appear great news .
However , while no one is pretending that the current economic climate is particularly rosy , there are many reasons to be optimistic about the future – and reasons for us at GB Bank to look forward with great confidence .
Interest rates : the silver lining Higher interest rates make borrowing more expensive , which makes people less able to afford to buy goods and services , particularly when it comes to property .
However , mortgage rates are now starting to stabilise and there are thousands more mortgage products available now than there were last autumn in the immediate aftermath of the Truss / Kwarteng budget .
Building up – Middlesbrough-based GB Bank has been backing property projects across the region and around the country .
Even the latest base rate rise to 5.25 per cent caused little disturbance in the mortgage market , with many providers already pricing in the increase .
A more stable – if pricier – mortgage market helps to create a more stable property market , which helps investors and developers to better price up , plan ahead and execute projects .
Of course , higher interest rates for borrowers also mean higher interest rates for savers , making savings accounts more attractive in terms of returns .
This is certainly something we have seen with our own savings products , which have attracted over £ 300m in deposits since the start of the year . This , in turn , helps us to provide more lending solutions to the SME property developers and investors which form the bedrock of our customer base on the lending side .
And when it comes to lending , demand is not just there , it ’ s soaring .
Our lending enquiry , approvals and completions tallies are all sharply increasing , despite the well-publicised challenges in the property sector , with the flexible approach that GB Bank has brought to the market proving to have very strong appeal .
Our range of short-term and long-term financial solutions are finding favour for everything from building or redeveloping
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