UK-based Equifinance has rolled out a new fund offering high net worth and sophisticated investors access to the secured loan market.

The firm said the fund aims to capitalise on the liquidity shortage in the UK lending market by providing funding to Equifinance, which will then offer loans to borrowers at a premium rate of interest.

With an annual income return of 10 per cent, the six-year Equifinance Loan fund is structured as a UK Limited Partnership and will distribute income to investors on a quarterly basis. Equity invested will be returned to investors at the end of the six years.

The lending criteria allows for loans between £5,000 (about $8,000) and £20,000, secured on residential property up to a maximum of 75 per cent loan-to-value. The minimum holding per investor is £10,000.

The fund is also available to individual, SIPP, SSAS, corporate, charity and institutional investors.