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.
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| Amount invested | Total interest earned by investors | Average interest rate [1] | Amount withdrawn | |
|---|---|---|---|---|
| 2021 | £0m | £8m | 6.15% | £109.8m |
| 2020 | £80.4m | £9.3m | 4.22% | £99.6m |
| 2019 | £164.4m | £7.6m | 4.06% | £64.5m |
| 2018 | £113.7m | £3.6m | 4.19% | £31.9m |
| 2017 | £57.8m | £0.8m | 4.51% | £6.7m |
| 2016 | £0.4m | £0 | 5.69% | £0 |
[1] Average rate of return investors received across all open loans for the period less any capital losses in the period. Details of capital losses can be found here.
Data shown is for each financial year running for 12 months from 1st of May to 30th April. Octopus Choice launched in January 2016, so we are not able to provide 12-month discrete periods prior to periods shown.
Our loan book
As at 30 April 2021
£625,000
Average loan size
62%
Average initial LTV ratio
5.28 years
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. Please note that as Octopus Choice is currently not accepting new investments, it no longer takes a management fee. Instead this is passed onto all 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. You can find more information on fees in the “Underlying loans in Octopus Choice” document in the Key Documents section below.
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.
Octopus Choice on the go
Investors can manage their account with our app available on iOS and Android.
Key documents
| Octopus Choice brochure | Download |
| Octopus Choice factsheet | Download |
| Understanding the risks of Octopus Choice | Download |
| Underlying loans in Octopus Choice | Download |
| Octopus Choice Outcomes Statement 2021 | Download |
| Octopus Choice Outcomes Statement 2020 | Download |
| Octopus Choice Terms and Conditions | Download |
| Octopus Choice Privacy and Cookie Policy | Download |
Contact our team
Got a question?
Call us at 0800 294 6848.