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Challenger bank OakNorth's loan book surpasses £300m after largest deal yet

OakNorth Bank, the challenger bank which bills itself as ‘the bank for entrepreneurs’, has completed its biggest deal yet since its launch in September 2015.

The London-based bank has provided a £20m loan to Whittlebury Park as part of its acquisition of Whittlebury Hall, a 4-star hotel and spa situated on the leisure resort’s grounds.

Based in Northamptonshire, the 300-acre Whittlebury Park sits near to Silverstone racing circuit, and includes a 36-hole golf course and 41-bedroom hotel, with the acquisition of Whittlebury Hall set to bring a 4-star hotel, four restaurants and other facilities under the Park’s ownership.

Commenting on the deal, Jeff Sargeant, Executive Chairman of Whittlebury Park, said: “It has taken over three decades to develop Whittlebury Park into the estate it is today and as we look ahead to the future, we are keen to continue building on its success and expand further.

“Uniting Whittlebury Hall with Whittlebury Park will bring the entire estate into family control, and provides us with the opportunity to increase our corporate proposition and host more guests during peak times such as the Grand Prix.”

The multi-million pound loan means that OakNorth’s loan book has now reached around £300m, and has gained particular momentum following the Brexit vote, filling the gap left by larger lenders who have reined in their lending capacities.

Ben Barbanel, Head of Debt Finance at the digital-only lender, said the ongoing economic uncertainty which looks set to continue into 2017 will help to boost the bank’s loan book further.

He said: “Since the Brexit vote, we have seen a significant boom in business as many larger lenders have been slowing down their decision and underwriting processes even more than normal.

“Given that the economic uncertainty looks set to continue into 2017, we expect to continue seeing this surge in demand over the course of next year.”

The London and Manchester-based bank became one of the first challenger banks to turn a profit back in September, after its SME-focused lending has attracted high-demand from the UK’s small firms.