UK-based challenger bank Glenhawk, which specialises in residential and commercial property bridging loans, has agreed a new senior funding line with JP Morgan to support its ambitions to grow its UK loan book to £200 mln (220 mln) by the end of 2021.
According to Glenhawk, the facility marks the first time that JP Morgan has invested in a private securitisation backed by UK bridging loans.
Backed by Rightmove founder Harry Hill, Glenhawk was launched by Guy Harrington in January 2018. Having secured a £75 mln funding line from Shawbrook and Insight Asset Management in September 2018, Glenhawk's loan book passed the £100 mln mark by the end of its first year.
Glenhawk said that the new structure would help support an increase in its maximum loan size from £3 mln to £5 mln.
Founded and CEO Harrington said: 'This is a significant milestone for us, a little over two years since we started out. 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.
'The new funds allow us to enhance our existing product range, whilst providing us with the platform to expand into markets where there is an opportunity for us to replicate our success to date, as we look to continue pushing the boundaries with what is possible in the non-bank lending space.'
Having recently received authorisation from the Financial Conduct Authority, the new capital will additionally support Glenhawk’s entry into the c. £70 bn per annum UK homeowner mortgage market, with a first regulated bridging product planned for H1 this year, the firm said.
JP Morgan's Rob Tanna-Smith, executive director EMEA securitised products group said: 'Guy and Glenhawk marry institutional style lending practices, governance, and infrastructure with a customer-centric approach. The quality of Glenhawk’s existing loan book and Guy’s vision to broaden the product offering give us huge encouragement that this will be a successful partnership.'