HNW Lending has seen a number of “problem loans” resolved, meaning full lender repayments will soon follow, and it has over 10 new loans in the pipeline that will shortly be available for investors once passing through the legals.
The peer-to-peer asset-based lending platform said a number of its problem loans have been resolved in the last few weeks and it has had its first successful claim against a valuer agreed.
HNW Lending settled a loan this quarter involving a professional negligence claim against a solicitor acting for a borrower and had another case using the Land Registry indemnity insurance scheme, which has agreed to pay out £800,000 on a property the platform only had valued at £720,000.
The P2P lender said in all these cases, investors will get all their capital repaid along with full interest for the whole period that their money has been invested.
HNW Lending added that it tightened its lending criteria a few months ago which led to more loans being rejected and fewer new investment opportunities on the platform. However, in recent weeks it has completed “some good sized new loans and there is now plenty of availability again”.
The platform said it has more than 10 loans in progress which are not yet up on the platform, as it is waiting until there is greater certainty that they will complete before listing them.
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“With cold winter nights now upon us and the nights creeping ever earlier, its nice to have a bit of festive cheer around the corner,” HNW Lending told its investors, according to lenders on the P2P Independent Forum.
“And we’ve got two nuggets of our own festive good news to report! We are delighted that a number of our problem loans have been resolved in the last few weeks, with borrowers at last realising that Covid delays just won’t wash with the court any more…
“There is also festive cheer on the new lending side.”
In June, HNW Lending posted a profit account of £89,924 in the 12 months up to 31 March 2021, up from £51,521 during the same period the year before and chief executive Ben Shaw said the platform has “quite a few big loans in the pipeline.”