Glenhawk reaches £100 million lending milestone and becomes FCA regulated
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, 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 in 2018.
Guy Harrington, pictured, 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.
Our performance last year and our success in becoming FCA regulated provide further evidence of the increasing role that non-bank finance can play across the personal and professional real estate world.”