The Cambridgeshire Local Government Pension Fund and Trinity Hall, a University of Cambridge college, have launched a private bank offering loans to Sipps and SSASs.
In December, Money Marketing revealed the parties were in talks with Sipp and SSAS banking firm Pensions Bank over a possible takeover deal.
Cambridge & Counties Bank has now been created after the FSA approved the acquisition of Pensions Bank. The bank will offer loan facilities to Sipps and SSASs secured against commercial property, with terms of up to 20 years.
Loans will be a maximum of 50 per cent of the pre-borrowing fund value and no more than 70 per cent LTV of the asset purchased. The bank will also offer mainstream commercial mortgages to businessowners and retail and non-retail deposit accounts.
Cambridge & Counties Bank chief executive Gary Wilkinson says: “There is a need for increased competition in the banking sector.”
Hargreaves Lansdown head of advice Danny Cox says: “Loan facilities can be very useful to Sipps and SSASs looking to invest in commercial property.”