HNW Lending, an alternative lender that provides individual loans of between £50,000 and £1million to clients against their valuable assets, is receiving a growing number of enquiries from classic car owners seeking to use their vehicles to secure loans.
For the period January to September this year, the number of people approaching the company looking to secure a loan against their classic cars was 46% higher than the same period last year.
It has recently provided £100,000 plus loans against a customised Mercedes Maybach, and a 1939 Lincoln Zephyr. In addition to this, it has completed a loan in excess of £50,000 for a 1956 Jaguar XK140 Roadster.
Ben Shaw, founder and director of HNW Lending said: “Classic cars are one of our preferred valuable assets to lend against. In relation to other physical assets, they are easier to validate as genuine and their value has been rising dramatically, meaning any potential risk we face here in terms of repayment defaults, is lower than in other areas.”
HNW Lending is using funds provided by its founder Ben Shaw, as well as those of over 10 high net worth backers. It provides loans against a range of people’s assets from classic cars, fine wines, jewellery, art and yachts, and more recently it has started lending against property and pension schemes.
As a sign of the buoyant classic car market, last year a 1962 Ferrari 250 GTO was sold at auction for £22.8 million – a new auction world record. The value of classic cars has increased by around 111% over the past five years, and 469% over the past ten.
The HNW Lending process
The process normally takes no longer than a week to complete. HNW Lending Ltd assesses the value of a potential client’s valuable items and based on this it will then find a lender prepared to provide funds against the item or items. This process usually takes no longer than 2 working days. HNW Lending will then arrange with the client for their items to be moved into safe storage or if it is a property, for a first or second charge to be registered.
For further information about HNW Lending, visit www.hnwlending.co.uk, or contact Ben Shaw at ben@hnwlending.co.uk (07958 636 106).
