New bank targets Northern Powerhouse

A new bank is aiming to launch in Newcastle with plans to lend £3billion over the next five years to boost housing and residential developments in the “Northern Powerhouse”.

GBB is aiming to cash in on growth from the launch of HS2 and provide finance to homeowners, commercial developers and SME housebuilders across the region.

It aims to finance up to 25,000 new homes in an area which it says has been “starved of traditional bank funding and in desperate need of new houses”.

The bank says it will provide secured loans of £1-5m to experienced residential and commercial property developers and small construction businesses.

GBB is in the process of raising £200m in phases.

GBB has applied for a banking licence and hopes to receive this in the third quarter of 2020.

Deutsch says: “There is a clear economic and political tailwind supporting the regeneration of the north of England.

“The government has set out its unambiguous plan to rebalance the UK economy and we want to play a central part in that, helping the thousands of small businesses that have previously struggled to get the funding required to build the homes that people so desperately need.  “GBB is a new and exciting lender that provides its customers and investors with a very compelling proposition at a time of acute need.”