Property loans reach £23m at HNW Lending
HNW LENDING has passed £23m in property loans, as growth is projected to continue. This comes as the company announced that it completed £14m in loans in the year to March 2017.
The lender is now forecasting “strong growth” in the year ahead as clients find it increasingly difficult to get extra funding from traditional mortgage providers due to their age, income, or the size of their loan.
The alternative lender specialises in high value assets such as classic cars, jewellery and fine wine, but 95 per cent of its loans are currently invested in property.
Overall, 95 per cent of these properties are based in the UK, while the remaining five per cent is invested in overseas homes, primarily in France and Spain.
Read more: P2P lenders move towards niche assets
“Lending against property is the biggest part of our business, and as traditional lenders tighten their loans criteria, we expect it to be the fastest growing,” said Ben Shaw, founder and director of HNW Lending.
The firm typically offers property loans of between £50,000 and £2m, with a loan to value ratio of up to 80 per cent. In most cases, the process is completed within a week.
Since March, lenders have been able to invest in these loans via an Innovative Finance ISA (IFISA). The minimum investment for the HNW IFISA is £5,000 and it offers returns of between seven and 15 per cent per year.
Read more: HNW Lending launches IFISA with va va vroom!