Important: We will not be accepting new investments or processing withdrawals on Octopus Choice for now. For more information, read our statement.
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
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.
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.
|Amount invested||Total interest earned by investors||Average interest rate ||Amount withdrawn|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|
 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
Average loan size
Average initial LTV ratio
Average loan term
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.
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.
For investors who wish to access choice directly with no additional tax considerations. Any interest earned above an investor’s personal allowance is liable to be taxed as income.
Investors can hold Choice inside the IFISA tax-free wrapper.
Use your annual ISA allowance or transfer from existing ISAs.
The Choice IFISA has a different risk profile to traditional cash and stocks and shares ISAs. Tax treatment is subject to individual circumstances and may change in the future.
Contact our team
Got a question?
Call us at 0800 294 6848.