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New secured loan lender launches

A new secured loan lender named Portal Portfolio has launched today, allowing borrowers to simultaneously invest in a pension fund and obtain a secured loan.

The lender is aimed at anyone who has a self-invested personal pension or SSAS pension and is looking for a secured loan.

The pension fund provides the funding for Portal Portfolio to offer secured loans, offering a guaranteed 4% return.

Portal Portfolio is offering loans up to £75,000, with rates starting from 9.9% up to 80% LTV.

The pension and the loan will not be linked and the loan is secured against the borrower’s property, not the pension.

Initially, the loans will be offered exclusively through All Types of Mortgages and brokers will receive 4% of the loan in commission for referrals.

The lender will be looking to widen its distribution in the new year and is also in talks with a number of big pension funds.

The loans are being offered to employed or self-employed borrowers.

Borrowers must have at least £10,000 in a pension, but do not have to invest all of their pension. However they must invest more than they want to borrow.

Mortgage brokers who wish to recommend the secured loan but are not qualified to offer pension or investment advice can hand over the regulated aspects to a specialist pension IFA who will advise clients on whether transferring their pension is the best option.

Tim Moore, managing director of Portal Portfolio, says; “This is an exciting product as it allows both investors and borrowers to benefit from attractive rates.

“Obviously it won’t be appropriate for everyone, but for those people with sizeable investments in their pension, who are also looking to borrow money for anything from commercial reasons to home improvements it’s particularly attractive.

“At 4% the pension fund offers good returns, which are ring-fenced so we expect the concept of collective funding a lending facility to appeal to both the borrowers broader individual and institutional investors.”

Vic Jannels, group chairman of AToM, says: “The product has a clearly defined market and will appeal to the thousands of professional people who may have significant sums tied up in both their property and pension schemes. The collective nature of this investment allows borrowers to achieve good returns on their pension and at the same time borrow at competitive rates.”



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  • James Hall 3rd November 2010 at 8:59 am

    Great to see a new innovative approach to lending coming to the market. It will give brokers another product that is not available on the high street but it does need to backed by proper impartial advice.