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HNW Lending Review

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By on 16 May, 2018 | Read more by this author

Here is the most recent HNW Lending review from one of our experts. It is available in an IFISA.

Quick Expert HNW Lending Review

The most secure loans in the industry (if you're selective), plus highly personalised service

HNW Lending has completed tens of millions in loans since 2014. Its key decision maker has a decade's experience and comes from a property background, and most of its loans are property loans.

Its processes tick all the boxes for this kind of lending: it mostly sticks to property or items it understands with a maximum loan of 70% of their value; independent assessments are made where appropriate; items are stored securely and insured; borrowers are all wealthy “high-net worths”; borrowers pay interest monthly or in advance; and bad debts are quickly spotted and rapidly acted upon.

HNW Lending can be loose in how it selects borrowers, but only where the property or items are clearly worth a lot more than the loan. On average, with HNW Lending's “senior” loans, borrowers borrow under £45,000 for each £100,000 in property that they put up as loan security.

The focus is on accepting property security and borrowers where recovering bad debt is easy, so there have been no losses for lenders to date.

That said, a high number of loans go late or go bad, as is usual for this kind of lending to wealthy borrowers rich in property but low on cash. But, while this can lead to delays, the usual expected result is recovery of the bad debt – complete with additional interest. For example, no loans made in 2014 and 2015 have any remaining outstanding late payments and all bad debts have already been recovered.

Interest rates appear fantastic for the risks involved in HNW Lending's senior loans, able even to withstand a major recession and property crash if you lend in a large basket of similar loans. For HNW Lending's junior loans (where other lenders, such as banks, as well as prior HNW loans to the same borrowers, get priority of payment if the borrower can't pay all the bills) lenders should still expect to lend very profitably in normal times and profitably in a minor recession and property crash.

You can choose to lend just in senior loans if you want. You can also choose to lend automatically, which means your money is spread automatically across a minimum of 15 loans, with a maximum of 10% of your money in any one loan. Your money is re-lent automatically as loans are repaid. When you auto-lend HNW Lending also contributes a share of its revenue to a modest pot that will help to further take the edge off any losses.

HNW Lending* is transparent, sharing a great deal of information with us. It is established enough for our full risk-modelling techniques (enabling us to assess it for a PLUS Rating).

We have limited information on the financial health of this P2P lending company, but its directors are high-net worths themselves and they are lending over £500,000 spread across lots of HNW Lending loans. They even taken the first loss on any loans they lend in that go bad and a full recovery is not possible.

HNW Lending offers the most personal service of all P2P lending sites: you have a direct line to the CEO who will provide you more information on each borrower, answer your specific questions on available loans, and tell you how much he and other directors are lending in each loan.

It’s very exclusive with a high minimum of £10,000 per loan in each loan you lend in. However, if you put £15,000 into HNW Lending's IFISA, the minimum you can lend is reduced to “just” £5,000 per loan.


Visit HNW Lending*.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Experts, journalists and bloggers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from HNW Lending and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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