Mortgage Market Shifts as GB Bank Expands into London and South East

The mortgage market is experiencing a significant shift as GB Bank opens its first London office, marking a major expansion into the London and South East property sector. This move is expected to have a profound impact on the industry, particularly in the buy-to-let (BTL) market.

GB Bank’s new London office

GB Bank’s CEO and co-founder, Stephen Lancaster, expressed his excitement about the new office, stating that it will enable the bank to serve the entire UK market more effectively. With its full banking licence secured in 2022, GB Bank has been successfully delivering property finance solutions across the UK with exceptional communication and rapid turnaround times.

The bank’s new office will provide a great base to bring its flexible approach to the London market, partnering with local developers and investors on their upcoming projects. This expansion is a significant milestone for GB Bank, which has already approved over £90m in loans to support more than 130 property projects across the UK.

Precise Lowers Rates Across Expanded BTL Mortgage Range

In related news, Precise, part of OSB Group, has made significant changes to its BTL product range, including reduced rates starting from 4.49% and new fee products. The enhancements are designed to offer a more competitive range while helping to increase the borrowing capacity of landlords.

Precise’s expanded BTL product range

The lender has reintroduced Tier 1 products at 70% and 75% loan-to-value (LTV) with reduced paperwork for eligible borrowers and options for houses in multiple occupation (HMOs), multi-unit freehold blocks (MUFBs), and limited companies. Precise has also expanded Tier 2 and 3 products up to 80% LTV with 2-year and 5-year fixed options, expanding the allowable adverse at higher LTVs.

Interest Rate Cut on the Horizon?

The Bank of England has opened the door to cutting interest rates in August, which could have a significant impact on mortgage rates. The bank’s rate-setting committee voted to keep interest rates at a 16-year high of 5.25%, but the minutes from the meeting signalled a significant change in tone, indicating a majority could vote for a cut when they meet again on 1 August.

Bank of England governor Andrew Bailey

If the Bank of England does go ahead with an interest rate cut, it would be the first one since March 2020. This could bring relief to homeowners who are facing higher mortgage rates, particularly those coming to the end of their fixed-rate deals.

In conclusion, the mortgage market is experiencing significant shifts, with GB Bank’s expansion into London and South East, Precise’s reduced rates, and the potential interest rate cut by the Bank of England. These changes are expected to have a profound impact on the industry, and it will be interesting to see how they play out in the coming months.