Octopus Choice

Important: We will not be accepting new investments or processing withdrawals on Octopus Choice for now. For more information, read our statement.

Octopus Choice

Target an interest rate of 4% by investing in a portfolio of loans secured against property

Using peer-to-peer technology, Octopus Choice puts investors’ money to work by lending it out to lots of different borrowers, with each loan secured against property. We use their interest payments to offer investors a great target interest rate.

For more information, visit the dedicated Octopus Choice website.

Reasons to invest

Reasons to invest

Interest rate

Investors receive monthly interest, which they can choose to reinvest automatically or receive as income.

Loans secured against property

Investments are in loans that are secured against property. These properties can be sold if the borrower defaults.

Loans selected by experts

Every loan has been sourced, and every borrower vetted, by Octopus Real Estate, an experienced property lender that’s lent more than £4 billion since 2009.

Putting your returns first

The first 5% of every loan is covered by First Loss which is made up of Octopus and an institutional investor. You’ll get your money back before First Loss, and you’ll earn your interest first too.

Key risks

Risks to bear in mind

Capital at risk

The value of an investment, and any interest from it, can fall as well as rise. Investors could end up getting back less than they put in. Interest is not guaranteed.

Property market exposure

If borrowers fail to meet the loan repayment terms, the property can be sold, and the proceeds used to repay the loan. As a result, your investment could be adversely affected by a downturn in the property market.

Instant access isn’t guaranteed

Because investments are in loans backed by property, it could take time for us to sell your investment on.

No FSCS coverage

Peer-to-peer investments are not protected by the Financial Services Compensation Scheme.

How it works

Octopus Choice uses investors’ money to finance loans made by Octopus Real Estate. Peer-to-peer (P2P) technology matches money invested with loans that are available for investment. Each investor holds a portfolio of ten or more loans, with their investment funding a part of each loan. The return an investor makes is funded by the interest borrowers pay on those loans.

Performance

Amount investedTotal interest earned by investorsAverage interest rate [1]Amount withdrawn
2019 £154.4 million £8.2 million 4.05% £72.7 million
2018 £130.5 million £4.2 million 4.17% £33.8 million
2017 £70.0 million £1.1 million 4.43% £10.1 million

[1] Average rate of return investors received across all open loans for the period.

All data correct as at 30 September 2019

Our loan book

As at 31 January 2020

£664,923

Average loan size

64.76%

Average initial LTV ratio

5.94 years

Average loan term

Fees and charges

Fees and charges

Octopus takes a spread between the interest rate at which Octopus Real Estate lends to each borrower and the interest rate paid to Octopus Choice investors.

Octopus Real Estate also charges borrowers a monthly management fee of up to 0.35%, and can earn extra fees if borrowers repay loans early, or if they choose to extend their loan. 

However we’ll only earn these fees after investors have been paid all their interest. If a borrower stops paying interest we use these fees to pay the interest owed to investors.

Adviser charges

One-off fee on investments

If you provide your investor with one-off investment advice we can facilitate an initial fee.

Ongoing fees on investments

If you provide your investor with ongoing advice we can facilitate an initial fee and ongoing fees.

Account types

Account types

Key documents

Key documents

Octopus Choice brochureDownload
Octopus Choice factsheetDownload
Understanding the risks of Octopus ChoiceDownload
Underlying loans in Octopus ChoiceDownload

Contact our team

Got a question?
Call us at 0800 294 6848.