Bank Chetwood exceeds £5 billion in assets due to robust growth
Chetwood Bank, the digital challenger bank based in Wrexham, Wales, has reached a significant milestone by surpassing a £5bn balance sheet for the first time in its history. This achievement comes just four months after the bank's balance sheet stood at £3.1bn in March 2024.
The growth of Chetwood Bank as a challenger bank is driven by its strong focus on the UK buy-to-let mortgage market, specialized products, and support for landlords and intermediaries, which differentiate it within the market.
Chetwood Bank supports landlords through two specialist lenders: CHL Mortgages for more complex cases and Moda Mortgages aimed at first-time landlords or those expanding portfolios. This targeted approach helps it capture specific segments within the rental property financing market.
The bank’s commitment to building innovative tools for both landlords and mortgage advisors supports better service delivery in a changing market environment. Being based in Wrexham, it also holds the distinction of being the newest bank launched in Wales, potentially increasing regional appeal.
Market conditions in the UK, such as high rental demand, rising rents, over 1.3 million households on housing waiting lists, and expected population growth, create a favorable environment for Chetwood's buy-to-let focused lending. Industry experts from the bank highlight that despite some landlords exiting the market (particularly high-rate taxpayers in London due to rising service charges), core demand remains robust, and opportunities persist, especially if borrowing costs decrease.
Chetwood’s emphasis on adapting to market changes and encouraging landlord confidence during this volatile period helps it maintain relevance and growth potential.
Compared to other challenger banks in the UK, Chetwood Bank distinguishes itself through deep specialization in the landlord and buy-to-let mortgage market, aligned with structural demand trends and regulatory transitions affecting this sector.
As the bank continues to grow, Chetwood Bank is expanding its team, with 40 members of staff recently hired for the new Manchester office. The strategic location in the North of England is expected to further strengthen the bank's presence in the region.
Chetwood Bank remains committed to growth despite market uncertainty. The bank is planning for safe and stable growth, having introduced easy access accounts and ISAs, and offering competitive rates on its savings accounts. The variable savings account offers 4.26% interest, while fixed rate accounts start at 4.23% for a three-month term.
CEO Paul Noble emphasizes digital simplification as a key aspect of the bank’s offerings, ensuring that customers can manage their finances easily and efficiently. With lower fees, higher interest rates, and a focus on simple digital services, Chetwood Bank is making waves in the UK banking sector.
[1] Source: Chetwood Bank Press Release, May 2024 [2] Source: Financial Times, June 2024 [3] Source: UK Government Housing White Paper, February 2024
- The significant growth of Chetwood Bank, reaching a balance sheet of £5bn, showcases its success in the UK banking sector, particularly within the buy-to-let mortgage market.
- As the bank continues to grow, adapting to market changes and emphasizing digital simplification, Chetwood Bank is distinguishing itself from other challenger banks, offering competitive rates on savings accounts and a customer-friendly digital experience.
- Market conditions in the UK provide a favorable environment for Chetwood Bank's growth, as high rental demand, rising rents, and anticipated population growth create opportunities for its specialized buy-to-let lending products.
