"Luxury asset lending is definitely becoming better known and understood by advisers of all types."
The short term lender says greater difficulty accessing conventional short term funding is causing more advisers to turn to luxury asset lending.
Suros Capital currently has a pipeline of £12 million, with 50% coming from IFAs and private client groups, 30% from property brokers and packagers, and 20% from luxury asset specialists.
Ray Palmer, director of Suros Capital, 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.
“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.”
