HNW Lending lent £14 million against individual homes or portfolios of property in the year to March 2017.
This brings its total loans on property to £23 million.
HNW Lending provides individual loans of between £50,000 and £2 million to clients against valuable assets. The loan to value is up to 80%, and the process generally takes no longer than a week to complete.
It expects to provide significantly more property loans in 2017 and beyond because its ability to raise funds has been enhanced by receiving HMRC and FCA approval to offer Innovative Finance ISAs (IFISA), with minimum investments of £5,000. The company will offer returns of between 7% per annum and 15% per annum.
Since its launch in April 2014, HNW Lending has lent £23 million against property. Overall, 95% of this has been against UK based properties, and 5% against overseas homes – primarily in France and Spain.
Although the lender provides loans against a variety of assets from jewellery, fine wine, classic cars and even yachts, 95% of its lending this year has been against property. Many of its clients have found it difficult to secure extra funding from their mortgage providers because of their age, or because mainstream lenders are less keen on larger loans. They may also have complex incomes or finances that do not fit the traditional criteria used by banks and building societies.
Ben Shaw, founder and director of HNW Lending said: “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.”