StreamBank granted banking licence

StreamBank, born out of the ActivTrades bridging business, has secured a banking licence with restrictions.

The specialist bank will continue to focus on being a central partner for property professionals looking for bridging and development finance.

It plans to upscale its lending franchise throughout the authorised with restrictions (AWR) period, while it aims to develop a broader UK presence by introducing business development resources to support growth in its loan portfolio and by creating a wider broker network. 

Additionally, StreamBank — established this year — hopes to launch an array of deposit products in early 2023 which are expected to offer savers “consistently competitive” interest rates.

While preparing for its full banking licence, the lender intends to widen its proposition to offer short-term property loans of between £250,000-5m to support property experts, developers, entrepreneurs, and landlords. 

StreamBank is also working on providing regulated bridging finance options for customers who want to use their residential property as security to raise funds; in addition, unregulated bridging finance products could be a solution for experienced property investors who want to extend or improve their portfolios.

Property investors can also expect to access the lender’s development finance products for ground-up developments and heavy refurbishment projects, in addition to commercial mortgages for investing in new premises or to refinance existing properties or portfolios. 

Delighted with the new licence, Steve Pateman, CEO at StreamBank, said: “Over the past 12 months, through the hard work of all the team, we have successfully built a bank that combines the efficiency of modern technology with traditional banking judgement, enabling us to support the needs of property professionals up and down the country. 

“Property investors far too often find it difficult to work with a lender that talks their language and understands their needs, which leads them to miss out on good opportunities. 

“Creating a bank that uses experience and judgment and a desire to find a solution will help property investors build much needed homes and spaces that drive economic prosperity.”

John Reed, chairman at StreamBank, added that property investors with intricate transactions were often cast off by mainstream banks, and even some specialist lenders, as they targeted more vanilla automated lending. 

He stated that this subsequently meant borrowers missed out on good opportunities that were turned away just because of a transaction’s complexity, rather than the credit profile.

“StreamBank has been built from the ground up, helping property investors take advantage of those opportunities and, in turn, helping the housing shortage across the country,” added John. 

He thanked the team for their hard work while attaining the provisional banking licence and believes the full one will soon allow them to carry out the planned offering expansion.

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