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.
Recognise Bank to Enter Regulated Bridging Sector
Recognise Bank is preparing to move into regulated bridging, according to CEO Simon Bateman. The bank has applied for a variation of permissions to launch this new proposition, as bridging continues to drive its growth.
Bateman stated that the majority of Recognise Bank’s lending book is currently made up of bridging and commercial bridging. He highlighted the bank’s credit and lending teams, as well as its broker and strategic partner networks, as key factors supporting this growth. The bank takes a case-by-case approach to lending and is willing to consider complex structures, while maintaining strict credit parameters.
Since the end of the last financial year, Recognise Bank’s loan book has grown to over £500 million, with deposits exceeding £600 million. The bank rebuilt its risk framework in December 2024 to align with its lending strategy, focusing on capital use and IFRS stages one, two, and three. Larger or more complex deals are reviewed by a credit committee, which includes most of the executive committee.
Recognise Bank reached breakeven in May, ahead of its September target, moving from a £5.3 million loss in 2025 to a post-tax profit of £8.9 million for the year ended 31 March 2026. The bank’s shift to regionally based lending managers has strengthened broker relationships and expanded its reach beyond Manchester. Parasol V27 Limited invested £20 million in Recognise Bank in November 2024, followed by a further £5 million in March 2026.
For UK letting agents and inventory clerks, Recognise Bank’s move into regulated bridging could provide additional financing options for clients involved in property transactions requiring short-term funding solutions.
Source: Mortgage Solutions