Alternative lender HNW Lending has completed eight loans worth over £1.4m against individual homes or portfolios of property between July and September due to new mortgage regulations.
This is a departure from its normal lending against unusual assets such as high-end cars, yachts, fine wine and antiques. The loan-to-value on these property loans has been up to 80 per cent, and the process can take no longer than 10 days to complete.
The firm believes this is being fuelled by the new Mortgage Market Review rules that came into force earlier this year, which have made it harder to secure funding against property. Also, it suggested that demand is growing because some mainstream mortgage companies are restricting their lending for larger loans or multiples of income.
HNW Lending is a new alternative lender, consisting of a panel of high net worth individuals who provide individual loans of between £60,000 and £1m to clients against valuable assets.
Ben Shaw, founder and director of HNW Lending, said: “The Bank of England’s recent Credit Conditions survey of lenders between June and September this year recorded the biggest fall in the value of credit they were able to supply since the end of 2008, when Lehman Brothers collapsed.
“The new rules introduced through MMR have made it more difficult to secure mortgages and this is fuelling demand for our proposition.”