By Daniel Lanyon on Tuesday 21 March 2017
The alternative lender is now allowing investment via the tax wrapper for its loans against luxury goods such as fine wine and art.
HNW Lending has received full approval from the Financial Conduct Authority approval to offer Innovative Finance ISAs (IFISA), with minimum investments of £5,000 per loan.
It will target returns of between 7 per cent per annum and 15 per cent per annum depending on the risk of the loans in which the investors choose to invest.
Launched in April 2014, the firm offers loans of between £50,000 and £1m to borrowers against valuable assets such as classic cars, fine wine, art and even classic stunt planes. It has provided over 150 loans with no loss of capital or interest to date, the firm says.
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.
“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,” said Ben Shaw, founder and director of HNW Lending.
The IFISA was launched on 6th April 2016, and it 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 tax-free interest and capital gains.