Enness average loan size hits £2.25m
The average loan size Enness handled through private banks in the first quarter was £2.25m, up from the average of £1.5m through 2011.
The average loan size increases further when domestic buyers are factored out as the average loan size, if the vehicle or client buying property was foreign or offshore, was £2.85m.
Foreign and offshore cases accounted for 52% of Enness’ business volumes in the first quarter of the year and Enness said that it expected this trend to continue throughout 2012.
Hugh Wade-Jones, director of Enness Private Clients, said: “We have spent a large amount of time developing relationships in the Middle East, East Asia and the Channel Islands and this concerted effort has paid off when you look at the percentage of our volumes such business now accounts for.
“With continuing economic uncertainty in the eurozone, money is going to pour out of countries such as Italy and Spain, so we are also looking to forge partnerships in such regions.
“Although private and overseas institutions have provided a valuable service in a sector that many high-street lenders have shied away from, we have noticed some banks are becoming increasingly uncomfortable lending to clients whose money originates from countries where there has been political unease.”
Wade-Jones said that the result was a number or perfectly legitimate clients from those countries having difficulty finding finance.
He said: “We had one such recent case via a family office where a Libyan client who needed to refinance his London residence had faced difficulties with his current private bank. It had decided to remove all banking and credit facilities for anyone from a country that had seen a political uprising in the last 12 months.
“This was a catch-all decision affecting everyone regardless of the fact the client resides in the UK and his business is US-based. We have been able to work with the client and a range of alternative private bank lenders to secure the finance and ensure he is not unduly affected by this somewhat bizarre decision.”
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