Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

LHV Bank Passes £1bn SME Lending Milestone After 2023 Launch

LHV Bank has surpassed £1bn in total lending to UK SMEs and property investors since launching its SME lending business in 2023. The lender attributes the growth to strong demand from brokers and borrowers across commercial real estate, trading business mortgages and specialist buy to let (BTL).

Brokers Returning With Larger Deals

Conor McDermott, director of SME lending at LHV Bank, said reaching the £1bn milestone showed the bank had moved beyond simply establishing itself in the market. Brokers and borrowers were now returning with larger, more complex opportunities, he added, because they understood how the bank approaches a deal and knew they could speak directly with the people making lending decisions.

A Challenging Commercial Market

McDermott noted that the commercial market had not been straightforward over the past few years, with borrowers facing higher funding costs, changing valuations and increased scrutiny of cash flow. He said growth comes from understanding what sits behind the property, how the business performs and what the borrower is trying to achieve, not from simply saying yes to more deals.

Looking Ahead

McDermott said the lender intends to maintain the same approach as it expands. He described £1bn as a significant marker for a lending business that only began originating loans at the start of 2023, but stressed that the bank was not interested in growth for growth's sake. The priority, he said, is to keep doing good deals, support more brokers and borrowers, and maintain the service that got the bank to this point.

What This Means for Letting Agents and Inventory Clerks

For professionals working in the lettings and property sector, the continued growth of a specialist BTL and commercial lender is a noteworthy development. Increased lender appetite for specialist buy to let finance can affect the availability of funding for landlords, which in turn shapes portfolio activity and letting market conditions. Agents may wish to monitor how lenders such as LHV Bank develop their specialist BTL ranges.