The secured lender for wealthy clients revealed its strategy change as it announced the appointment of John Allbrook (pictured), former executive chairman of Syscap, as executive chairman and CEO. It said property values are decreasing and the market has become “particularly crowded”.
Allbrook becomes CEO with immediate effect, replacing founder Paul Aitken, who stepped down on 13 June.
At Syscap, Allbrook oversaw a doubling of new business, culminating in an acquisition by the Wesleyan Assurance Society in 2015. He has also previously held positions at GE Capital and GoIndustry.
He said: “Borro has carved out a unique space in the financial services market and I am confident about future growth.”
“However, the property bridging market has become particularly crowded and this, coupled with decreasing property values, makes this a pragmatic decision to have reached.”
“There is a substantial opportunity to grow our luxury asset finance business both in the UK and internationally. Making this our primary focus will help the business to realise its true potential.”
Since its launch in 2009, Borro has lent over £260m across the UK and the US. The company provides same day loans between £5,000 and £5m secured by a range of luxury assets including fine art, jewellery, watches, fine wine, and classic cars.
Its average luxury asset loan size is £50,000, and the company saw 30% per cent growth in 2016, partnering with IFAs, packagers, wealth managers, private client groups and auction houses.
The news follows Borro’s decision to halt second charge, higher value and higher LTV mortgage lending in the wake of the EU referendum.