HNW Lending has reported a pick-up in activity in recent weeks after admitting that the number of loans on its platform this year was “less than we would have liked”.
The peer-to-peer asset-backed lending platform said the market appears to have more cash “floating around” than before as post-Covid lenders re-enter the market.
However, it also noted that increased competition for loans had led to lower interest rates.
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“We have been paying more attention to affordability and loan exit routes for some time, as court delays mean that any redemption action is taking much longer than it was pre-Covid,” HNW Lending said in an investor update.
“Consequently, we are trying to screen out loans that we believe could go into foreclosure. This has inevitably led to fewer loans on the platform in recent months.”
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However, HNW Lending noted that “things have recovered in recent weeks and the pipeline of new loans is strong.”
The platform also said it has decided to only place loans on the platform when it is confident that they will be completed and that the target completion date is likely to be met.
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“This means that some loans may not be placed on the platform until close to the completion date,” HNW Lending said.
“However, we have a system to email lenders when new loans are posted. So make sure you’ve signed up and ticked the boxes to receive loans that match your investment criteria via email.”
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