Alternative lender HNW Lending it is to provide its service against residential property worth £1 million or more. The loan to value (LTV) will be up to 80%, and the process should take no longer than 10 days to complete.
HNW Lending provides individual loans of between £60,000 and £1 million to clients against valuable assets such as classic cars, fine wines, jewellery and private jets.
The company believes its service will prove popular amongst high net worth homeowners who cannot re-mortgage because they will lose their existing very competitive deals that they secured a while ago, or those concerned about their ability to re-mortgage under the more restrictive lending criteria that came into force last month through the Mortgage Market Review.
HNW Lending also believes that demand for its service could be fuelled by mainstream mortgage lenders restricting their loan books.
New research from the company reveals that they number of properties worth £1 million or more in the UK is increasing dramatically. Its analysis of Land Registry data reveals that there were around 10,993 homes In England and Wales sold for seven figures or more in 2013, compared to 7,960 in 2012.
Ben Shaw, founder and director of HNW Lending, said: “Property wealth is rising dramatically and the number of people who own a home worth £1 million or more is higher than ever before. However, for many it is difficult to release some of this capital because they could lose a fantastic mortgage rate they secured a few years ago, or they may find it difficult to re-mortgage in the way they want to under the stricter rules introduced through MMR.”