Over the course of the past year, we have constantly been hearing news about companies closing down to new business and others withdrawing their loan products due to the ongoing effects of the credit crunch.

It is therefore quite refreshing to learn that the loan packaging company Y3S has just launched a range of specialised loan products, which are being aimed at the high net worth end of the market and are predominantly being offered through the Independent Financial Adviser (IFA) market.

The packager has arranged agencies with 21 private banks, who will provide the funding for specialist bespoke loans, which will start at £1 million and go up to £25 million. These will of course be secured loans and are likely to use a variety of valuable luxury items such as yachts and works of art as security for the loan.

The secured loans will typically be flexible, with no early repayment penalties and are likely to charge interest at a rate of bank base rate plus 1.75 per cent, with the loan amount being made available in a range of currencies, to suit the borrower. Although the new service has only just launched at the beginning of September, the company has already had enquiries for secured loans totalling more than £750 million.

The director of Y3S loans, Barney Drake, said that the loans were tailored specifically to meet the particular customer’s needs and that no two loans were ever exactly the same. The loans can be used for almost any legal purpose, but are mostly taken out for business expansion plans or tax mitigation.

It’s nice to know that, despite the effects of the global credit crunch making it more difficult than ever for the average man in the street to obtain a mortgage or personal loan, at the top end of the loan market things are going swimmingly well!