Investing in secured lending
Helping investors target returns by investing in loans secured against property
Investing in loans allows investors to target regular interest payments from a diversified portfolio of loans. This happens through a peer-to-peer (P2P) platform that matches lenders and borrowers.
Reasons to invest
Investors in property-backed loans can target a regular income from their investment in the form of interest.
Property-backed lending offers a way for investors to increase diversification of their portfolio.
As a debt-instrument, property-backed P2P investments target predictable, regular returns that are not driven by the stock market.
Risks to bear in mind
Capital at risk
Investing in loans puts capital at risk. The value of an investment may fall as well as rise, and investors may not get back the full amount they invest. The return of the initial investment and interest received depends on borrowers repaying as expected.
Concentration and liquidity
Money invested through Octopus Choice is concentrated in loans backed by property and could be affected by market conditions. For the same reason, instant access to your invested capital cannot be guaranteed.
No FSCS coverage
P2P is not covered by the Financial Services Compensation Scheme.