HNW Lending has reported a pick-up in activity in recent weeks, after admitting that the number of loans on its platform “has been lower than we would have liked” this year.
The peer-to-peer asset-backed lending platform said that there appears to be more cash “swilling around” the marketplace than previously, due to lenders coming back into the market after Covid.
However, it also noted that increased competition for loans had resulted in lower interest rates.
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“We have been paying more attention to affordability and loan exit routes for some time now, as the delays in the courts means that any repossession action takes far longer than pre-Covid,” said HNW Lending in an investor update.
“Consequently, we are trying to weed out loans that we think may end up in repossession. This inevitably has meant fewer loans on the platform over recent months.”
However, HNW Lending noted that “things do seem to have picked up in recent weeks and the pipeline of new loans is strong”.
The platform also said it has decided only to put loans on the platform when it has confidence they will complete and that the target completion date is likely to be met.
“This does mean that some loans may not get put on the platform until very close to the completion date,” HNW Lending said.
“However, we do have a system to email lenders when new loans are posted, so please make sure you are signed up for this and have ticked the boxes so that you are emailed loans that meet your investment criteria.”