- Alternative lender HNW Lending receives FCA approval to offer the new Innovative Finance ISA
- The company provides loans of between £50,000 and £1 million against valuable assets including property, classic cars, art, jewellery and fine wine
- Minimum investment in the IFISA is £5,000
HNW Lending, an alternative lender that provides individual loans of between £50,000 and £1million to borrowers against their valuable assets, has received FCA and HMRC approval to offer Innovative Finance ISAs (IFISA), with minimum investments of £5,000 per loan. The company will offer returns of between 7% per annum and 15% per annum depending on the risk of the loans in which the investors choose to invest.
HNW Lending launched in April 2014 and to date it has provided over 150 loans with no loss of capital or interest.
The company uses funds from third parties such as individual investors to provide 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.
The IFISA, which was launched on 6th April 2016, allows individuals to use some or all of their annual ISA investment allowance to lend funds through the Peer-to-Peer lending market, whilst receiving interest and capital gains tax-free. To date, there are only eight IFISAs open for lending.
Ben Shaw, founder and director of HNW Lending said: “We are delighted to have received HMRC and FCA approval to offer IFISAs. We have a proven track record of providing strong returns to the investors who fund our loans, and we have not lost any capital or interest to date.
“Unlike some of our competitors we take possession of valuable physical assets belonging to the people we lend to or put a charge on their property at the Land Registry so that if they default in paying back their loan or interest we can sell those assets to repay investors.”
HNW Lending uses funds provided by its founder Ben Shaw, as well as individual investors and backers.
The HNW Lending process
The loan process often takes just a few days. HNW Lending Ltd assesses the value of a potential borrower’s valuable items and based on this it will then find a lender prepared to provide funds against the item or items. HNW Lending will then arrange 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.