JP Morgan is providing Glenhawk with a £200m funding line to help finance the UK bridging finance specialist’s growth.
It represents JP Morgan’s first private securitisation backed by UK bridging loans. The loan will support the Glenhawk’s plans to increase its UK loan book to £200m over the next year and allow it to increase its maximum loan size from £3m to £5m.
Glenhawk, which was created two years ago, will also use the new capital to enter the UK homeowner mortgage market, as well as providing short-term flexible loans to professional residential and commercial borrowers.
“This is a significant milestone for us,” said Guy Harrington, founder and chief executive of Glenhawk. “JP Morgan is one of the world’s most prestigious financial institutions, and we are extremely excited by this opportunity, whilst also a little humbled.”
JP Morgan said that it had been encouraged by the quality of Glenhawk’s existing loan book. Rob Tanna-Smith, executive director in JP Morgan’s EMEA securitised products group said: “Guy and Glenhawk marry institutional style lending practices, governance, and infrastructure with a customer-centric approach.”
Harrington launched Glenhawk in January 2018, with the backing of Harry Hill, the Rightmove founder and former chief executive of Countrywide. The firm received a £75m funding line in September that year from Shawbrook and Insight Asset Management, and last year its loan book passed the 100m mark.
Glenhawk has taken advantage of the recent lending market, which has changed significantly. After the 2008 financial crash, high-street banks have retreated from the market for smaller loans because of tighter regulations, being replaced by challenger banks and alternative lenders.
Bridging loans have also increased in popularity. Applications for bridging loans totalled £23bn last year, an increase of 7% on 2018.