Farewell 2012. It was an interesting year for the commercial mortgage industry. Lending conditions remained extremely tough, with the big high street players continuing to shy away from loans to trading businesses and property investors. But there were positives for the industry too.
We’ve seen new lenders and brokers entering the market, helping to provide liquidity and increase competition beyond the big five. We’ve seen new schemes to encourage lending, and although it remains to be seen how effective they will be, there are positive signs that the government is serious about tackling the issue of credit to SMEs and keen to involve challenger banks like Shawbrook in the process.
Shawbrook entered 2012 as a new bank – specialists in savings and lending products, with a focus on straightforward processes and common sense lending. It was a challenging time to launch a new bank, but the demand for our products since launch has demonstrated the growing desire for alternatives to the high street banks where sensible lending decisions and good service are paramount.
So what does 2013 hold for the industry? The challenges faced by the bigger banks will not be disappearing any time soon, and most of the big players will be looking to consolidate rather than actively lend over the coming months. As a result, we think it’s going to be an important year for challenger banks, with the offer of new liquidity, no toxic debt and a real appetite to lend. We believe our ability to continue to deliver products that support clients’ needs, specialist teams that underwrite each application on its individual merits, underpinned by our commitment to delivering an excellent service, will help brokers and intermediaries to complete more deals over the coming year.
So is it all doom and gloom for the industry in 2013? We don’t think so. The challenges are clear, but there are opportunities out there for us. While new lenders like Shawbrook are never going to completely fill the void, we are offering alternative options and creating some competitive pressure for the big banks.
We have ambitious growth plans for 2013 and beyond and a strong desire to lend. We look forward to working with our valued network of brokers and intermediaries over the next year by continuing to provide specialist products and processes that we will continually enhance in line with market needs.
So, with the last of the mince pies finished, here’s to 2013. Let’s make it a year to remember for the commercial mortgage industry.
