But are they really new?


Together Money has been trading for 42 years and has an estimated 300 employees. United Trust Bank incorporated in 1955 and was one of the UK’s fastest growing companies in 2016. A relative newcomer, Aldermore started out in 2009 and although being one of the original ‘challengers’, it seems like they’ve been around for ages. So, even though they are not necessarily household names, they are well established players in the financial industry.


Why are we only really hearing about them now?


These new entrants have been very effective in raising and deploying new capital. Oaknorth, for example, has raised £700 million in the last 14 months and Together Money raised £1 billion in the past 15 months. In a similar vein, Octopus and Shawbrook have deployed £2.4 billion and £2.8 billion, respectively, since they began trading. A welcome injection of liquidity in a post financial crisis world.


The real estate finance landscape today is a much more stable place than it has been at any time in the last 10 years.


Equally important, changing perceptions in the marketplace mean that these lenders are no longer seen as the ‘banks of last resort’. Yes – they are more expensive, but having recruited from the traditional lenders who cut their cloth in the ‘Relationship Banking’ world, they are fostering strong client relationships and are able to make decisions quickly, with greater certainty. Great news for deal makers and from the lender’s perspective this makes sense as more emphasis is placed on personal interaction between the borrower and the lender to encourage better repayment behaviour.


It’s not just secondary/tertiary lending. Colliers International has been involved with a number of £100 million + single asset and portfolio valuations over the past 12 months.


The real estate finance landscape today is a much more stable place than it has been at any time in the last 10 years. New entrants are generating greater liquidity and are launching new lending products to the market. Whilst caution is needed to ensure that there is no repeat of the past, the industry looks to be on a much stronger footing for the future.


Tom Horrox Director | Valuation and Advisory Services +44 113 200 1870 | tom.horrox@colliers.com


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Perspective | Colliers International


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