Glenhawk, the fast growing UK challenger lender, announces that it has received authorisation from the Financial Conduct Authority (“FCA”), as it targets an expanded product offering in 2020 following a record 2019.
The FCA regulation provides a platform for Glenhawk to offer a range of homeowner loans, a c. £70 billion per annum market in the UK[1], as part of its significant 2020 growth ambitions. Glenhawk is targeting the launch of a first FCA regulated product in the first half of this year.
It follows a record year for Glenhawk during which it achieved a number of significant milestones, most notably reaching £100 million of lending. The company has also maintained its record of no defaults and no capital losses on its loans.
74 loans totalling £59.1 million were underwritten in 2019, reflecting a 150% increase over the previous year, with a record third quarter and month in September, during which £24.8 million and £12 million of loans were originated respectively.
This activity led to a six fold increase in revenues for the company and saw Glenhawk invest in its growth with seven new hires, leading to a 30% increase in the size of the team to 20, of which c. 40% are women.
Despite the ongoing economic uncertainty, demand from a range of property professionals for fast and flexible short-term lending solutions continues to grow, driven by low prices and favorable borrowing costs. According to the Association of Short-Term Lenders, UK bridging loan books totalled £4.3 billion at the end of Q3 2019, representing an increase of more than 5% on the same period last year[2].
Guy Harrington, CEO of Glenhawk, commented: “After a year of extremely strong growth we now enter 2020 fully authorised by the FCA to provide regulated products. This is a significant step forward for Glenhawk as it allows us to build on the success and momentum we have built in the short-term bridging market and start providing loans to a much wider universe of borrowers, whist remaining true to our ethos of responsible lending and diligent underwriting.
[1]https://www.statista.com/statistics/428979/quarterly-gross-mortgage-lending-united-kingdom/
[2]ASTL
