Art for art’s sake, or for the sake of a loan

Fine art by names including Henry Moore and Jack Vettriano is being put down as security for short-term loans as affluent Britons seek new solutions to cashflow worries.

Personal asset lender borro.com has reported a 21.7 per cent increase in the value of the fine art and sculpture being used to access loan finance. Its underground vaults now contain works including a Henry Moore sculpture with a loan value of £50,000 and a Henry Scott Tuke landscape with a loan value of £34,000. Kyffin Williams, Damien Hirst, Andy Warhol and Jack Vettriano are among the other artists whose work has been used by affluent collectors as collateral against loans.

Paul Aitken, borro’s chief executive, said: “We have seen an increasing number of high net worth individuals and small business owners lending against fine art amongst other assets for liquidity. Many people are realising they have collected an array of valuable personal assets they can use to raise funds without lengthy bank processes or putting property up as a guarantee.”