Borro has reported a 183% rise in property related loan applications from customers from 2011 to 2012.
The average loan value against all property related loans currently standing at £19,500.
The top three property related reasons for coming to borro are:
- Funding property development and redecoration e.g. building an extension or conservatory
- Covering the costs of owning a rental / second property while unoccupied or before a sale
- Bridging purposes
“With property related applications continuing to increase, it is clear people are still finding it hard to secure loans from traditional sources of finance,” said Paul Aitken (pictured), CEO of borro.
“Others may be finding the stagnant property market continues to work against them. Our clients are turning to their existing assets as collateral for loans; in the past a borro customer secured a £50,000 loan against a Henry Moore sculpture in order to complete a property deal, and another customer took out a £40,000 loan against a pair of Cartier earrings, to start their own business buying and selling property.
“Brits are realising that they have collected an array of valuable personal assets they can use to raise funds without lengthy bank processes. The vast majority of our customers redeem their assets demonstrating the risk free and efficient service we provide.”