GB Bank delivers on its purpose with over £6m invested in North East heartland

THE North East’s newest bank has been putting its purpose-driven values into action with over £6m worth of investments in its regional heartland in the past year.

GB Bank, which is based in Middlesbrough, received its full banking licence in August 2022.

Since then, the Bank has been delivering on its promises of building and regenerating commercial and residential properties in local communities right across the region.

The Bank has backed experienced SME property developers and investors by funding residential and commercial projects everywhere from Morpeth to Bishop Auckland, providing over £6m worth of vital approved finance to help kick-start or refurbish developments.

The North East investments form part of almost £60m of approved lending across the country and over £32m of new loans out of the door over the past 10 months.

GB Bank CEO and co-founder, Stephen Lancaster, said: “When we started the Bank, we said it was driven by its purpose – to build better futures for the communities who need it most.

“Just over a year into our life as a fully licensed bank, I’m delighted to say that thanks to the hard work of our fantastic team and the vision and determination of our customers, we are helping to do exactly that.

“Our key focus is to provide lending solutions to help bring much needed community developments to life.

“This has been the case with our lending in the North East and throughout the country, which has taken in projects from Northumberland to Norfolk and everywhere in between, but as a bank based and built in the North East, it has been particularly pleasing for us to have made a difference in this region.”

On the residential development side, GB Bank recently provided one of its residential bridging solutions to Newcastle-based developer Modo Bloc to help bring two Gateshead properties back to life.

The Bank managed to turn the deal around from initial enquiry to drawdown in less than six weeks. 

The two properties are now being refurbished and brought up to a higher standard of accommodation and their prominent location will mean they can be retained as a long-term investment for the borrowers.

The funding package is also set to unlock further community investment since Modo Bloc donate £2,000 to homeless charity Oasis Community Housing for every new house or two flats that they sell.

In Northumberland, bridging finance from GB Bank is helping complete a property which has lain unfinished for over two years.

A funding package for experienced property developers Dale and Jo Robinson is enabling them to finish building the final property on a housing development set in Mitford, near Morpeth.

Dale and Jo had originally gained the planning for the single property as part of an overall planning approval for the whole of the scheme which was created by a local developer.  They subsequently sold their land with planning approval to another local developer to receive payment once the completed property had been sold.

However, this home was only partly completed before work was stopped in 2021, leaving it the only unfinished house on the development. It can now be finished with the help of GB Bank’s funding.

The Middlesbrough-based bank is also helping to finance commercial developments in the region.

The Bank provided bridging finance to enable a previously vacant unit in Bishop Auckland, County Durham, to be refurbished and brought back into use.

GB Bank agreed the financing with developer Ellway Group, which is leasing the unit to a business, helping breathe new life back into Newgate Street in the town centre.

Stephen Lancaster said: “We’ve been lucky enough to work on deals all over the country and it’s great to see some of these community regeneration projects start to come to life.

“However, this is just the start for GB Bank. We have ambitious plans to fund many more transformative developments in the North East and across the country and we can’t wait to continue this fantastic work.”

Further information on GB Bank’s purpose can be found at Our Purpose – GB Bank

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