News Column

Super rich get to cash in on luxury assets

April 28, 2014

MICHAEL BOW



BRITAIN'S super rich are being given the chance to borrow up to £1m secured against fine wines, vintage cars and private jets under a new asset backed loans company designed to replace the pull back in private bank lending.


HNW Lending, which is rolling out its services today, is plotting to give loans of between £60,000 to £1m to high net worth individuals who want to cash in on their luxury assets and family heirlooms.


Under the rules of the scheme, HNW will pay out the loan in return for obtaining the asset, which is then put into storage until the loan is repaid.


There are around 700,000 high net worth individuals in the UK but increased regulatory burdens on typical loan providers is reshaping access to credit.


Ben Shaw, who founded the company, said: "This coincides with banks becoming less willing to provide large loans due to new regulatory and capital requirements, and a rise in the value of many collectable assets.


"For example, between quarter two 2003 and quarter two 2013, classic cars increased by around 430 per cent in value."


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Source: City A.M. (UK)


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