More advisers turning to luxury asset lending
Suros Capital, the short term lender, is reporting increasing interest from intermediaries for its luxury asset secured lending, with leading brokers of HNW clients recognising where the Suros proposition fits into the services they can offer clients.
According to Ray Palmer, director of Suros Capital, short term lending is a cutthroat market with so much competition that brokers have been spoilt for choice.
He said “That all changed as interest rates really accelerated. Along with the tightening of standard lending criteria among conventional bridging firms made our proposition more attractive, as we were not affected by the changes in borrowing costs.”
Suros Capital currently has a pipeline of £12m and a breakdown of where the business is coming from.
- IFA and Private Client Groups – 50%
- Property Brokers and Packagers – 30%
- Luxury Asset Specialists – 20%
Ray Palmer continued, “Luxury asset lending is definitely becoming better known and understood by advisers of all types. Because of our focus on the value of the asset, minimal paperwork and lack of personal intrusion in respect of income or credit checking, completions are taking place in some cases on the same day as an enquiry is made.
Whilst it is unlikely to become a major force in the bridging and short term lending market, what it does is provide an extremely useful alternative funding source for those clients who have assets other than property, which they can monetise to act as security against a short term loan.”
