ISA transfers give HNW Lending a boost

PEER-TO-PEER investors using HNW Lending’s Innovative Finance ISA (IFISA) have lent on average £40,000.

Ben Shaw, chief executive of HNW Lending, which provides loans secured on valuable assets such as classic cars and fine wines, said most of the platform’s IFISA intake has been from transfers rather than new money.

“We were seeing about 20 to 30 lenders per month during the peak period and now in the summer it’s about 10 per month,” Shaw told Peer2Peer Finance News.

“Average lending for the IFISA is about £40,000 as they tend to transfer in existing pots, especially cash ISAs sitting elsewhere as well as using this year’s allowance.”

HNW Lending launched its tax-free wrapper in March, letting investors fund loans of between £30,000 and £3m for collectors with returns of between seven and 15 per cent.

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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