View more on these topics

Idea for asset-backed loans floated

Commercial mortgage brokers could be thrown a lifeline if pension funds get behind a new idea being touted by Stuart Parfitt.

Parfitt, managing director of London-based Business Lending, wants pension funds to start making asset-backed loans to the corpor-ate sector.

Just as in the residential sector, commercial finance has been under the cosh and firms across the UK are finding it difficult to refinance due to the ailing economy.

Parfitt’s plan is to raise around £200m to provide medium-term loans from £500,000 to £10m to smaller companies.

The loans would be secured on commercial property and Parfitt is predicting a return of around 250 basis points above LIBOR.

Parfitt has been exploring the idea since last August and says that although the sector is still under pressure he can detect enthusiasm in the market.

Paul Munford, managing director of London-based Mortgage Centre IFA, says: “This idea seems to have merit and provides a new purchase scheme. It is a tax-efficient way of holding onto assets and could result in high yields.

“That said, if I had a pound for every idea I’ve heard this year I would be a rich man.”

Fahim Antoniades, director at Quantum Mortgage Brokers, says: “Good luck to Parfitt. Any new lending in such a depressed market will be welcomed by all those who can take advantage of it.”


Brown is playing a risky game of snap

US President Barack Obama has a reputation as a pretty cool poker player, which may explain the massive gamble he is taking on turning the US economy around.

FSA to move away from principles-based regulation

Hector Sants, chief executive of the Financial Services Authority, says the regulator will be moving away from a principles-based regulation towards a more “outcomes-based regulation”.

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]


News and expert analysis straight to your inbox

Sign up