A PEER-TO-PEER platform specialising in loans for valuable assets such as classic cars has become the latest to launch an Innovative Finance ISA (IFISA).
HNW Lending, which lets investors fund loans of between £50,000 and £1m for collectors, is offering an IFISA with returns of between seven and 15 per cent a year.
The minimum investment is £5,000 and the rate will reflect the risk attached to the loans chosen by the investor.
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The platform, which launched in April 2014, has provided more than 150 loans against a range of assets including property, wine, jewellery, art and classic cars.
Examples include a £100,000 loan against a customised Mercedes Maybach, and a 1939 Lincoln Zephyr, and a £50,000 loan against two classic stunt planes.
HNW Lending assesses the value of a potential borrower’s valuable items and based on this will find a lender prepared to provide funds against the item or items.
Arrangements will then be made with the borrower for their items to be moved into safe storage or if it is a property, for a first or second charge to be registered.
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Ben Shaw, founder of HNW Lending, says the platform holds security over the assets or puts a charge on the borrower’s property to protect against any defaults.
“We are delighted to have received HMRC and FCA approval to offer IFISAs,” he said.
“We have a proven track record of providing strong returns to the investors who fund our loans, and we have not lost any capital or interest to date.”
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