One of the UK’s fastest growing specialist lenders has agreed a £200m senior funding line with NatWest Markets (NatWest) to support its aim to lend £1bn per year by 2024.

The new line is in tandem with Glenhawk’s existing funding line with JP Morgan and benefits from NatWest’s experience in the UK bridging sector.

Over the 12 months, Glenhawk has doubled the size of its live loan book and expects to significantly increase its lending volume with the funding line. 

The capital will support the expansion of its unregulated product range, which will have a bigger focus on refurbishment and light development projects, larger loan sizes, commercial real estate, and an enhanced regulated offering.

“The support of NatWest is a major endorsement of not only what Glenhawk has achieved to date, but also our future strategy, and provides stable funding to support our ambitious lending targets,” said Daron Kularatnam, treasurer and ESG director at Glenhawk.

Jennifer Wallaert, managing director at NatWest Markets, commented: “NatWest Markets is delighted to work with Glenhawk’s team and support the company in its next phase of growth. 

“This transaction demonstrates NatWest Markets’ expertise and capabilities in the UK specialist lending space and associated hedging. 

“Supporting UK businesses and ultimately providing tailored innovative funding solutions to an underserved part of the market is at the very heart of NatWest Markets purpose-led strategy.” 

According to Glenhawk, an acute shortage of housing stock, a strong labour market, and an ongoing focus on homeownership has resulted in strong demand for Glenhawk’s short-term lending products in 2022 — especially in the residential space.

Consequently, it achieved three consecutive months of record lending in May, June and July and, following its launch in May, experienced a 300% increase in enquiries for its regulated product. 

“The market dislocation we are witnessing as a result of the current macroeconomic volatility provides an attractive window for highly disciplined and well-capitalised lenders,” added Daron. 

“Furthermore, the fundamentals underpinning homeowner, commercial and mixed-use asset real estate remain particularly compelling.”