- Attractive Returns, No Fees: We select deals that offer high returns and with no fees the rate that you see is the rate that you get Read more ...
- High Quality Deals: All loans are secured on property and/or personal/corporate guarantees, fully underwritten with us taking a minimum 10% loan share Read more ...
- Quick and Easy: Participate in a few clicks and start earning interest straight away Read more ...
- Liquidity: Exit a deal before maturity by offering all or a portion of your participation for redemption Read more ...
- Flexible: Participate as an individual or via a Special Purpose Vehicle ('SPV') to qualify for IHT relief Read more ...
- No Deposit, No Obligation: Register for free, pick and choose your deals, and only send funds when you participate Read more ...
Attractive Returns, No Fees
Our borrowers pay a premium for the speed, convenience, certainty and flexibility of our service and we pass whatever rate they pay directly on to you.
We run an efficient streamlined organisation and make our profit by charging a small introduction fee to borrowers. We do not charge our Lenders a Management Fee, meaning that the loan rate that you see advertised for a loan is the exact rate that you will receive.
If you enroll as an 'SPV Participant' then we do offer you the option of having the administration of the SPV Company (including preparation of accounts and submission of all annual returns) carried out by a 3rd Party from - but that is not a fee payable to us and we would assume that you would factor the cost against the (considerably greater) IHT saving.
High Quality Deals
All of the loans we make are secured on property or other realisable assets (at loan to value of 80% or less) and/or personal/corporate guarantees.
Before we make a loan available to Lenders, we have already executed the loan transaction with the borrower via a Special Purpose Vehicle (to avoid cross-contamination). We keep at least 10% of the loan for ourselves (to be precise, the minimum amount equal to or greater than 10% to leave a multiple of £) and put the balance onto our Loan Market platform.
In other words, we fully underwrite the loan and then sit alongside our Lenders. This acts as reassurance that we have done our due diligence properly and have a high level of confidence in the borrower repaying: if a loan goes sour then we stand to lose as well.
To us, the only acceptable default rate is zero: For every loan that ends up on our Loan Market Platform, we turn at least 10 deals down.
Quick and Easy
You can participate in tranches of £ in as many loans as you wish. Everything is done online - including digital signatures for all contractual documentation - so you can review and participate via 'point and click' in seconds.
Because loan interest from the borrower is already accruing when we put a loan onto the market, you start earning interest at one second past midnight following your participation.
What's more, when a loan is coming to an end you can choose to 'flip' your capital into one or more new loans, meaning firstly that you do not lose a single day of interest and secondly that no time is wasted receiving and re-transmitting funds.
The short video below - which lasts just one-and-a-half minutes (of which half is narrative) - demonstrates how quickly an investment can be made and the digital signing (for which there is a SmartPhone App) can be completed.
Should you wish to exit from a particular loan participation prior to its maturity date, you will have the option of offering a portion (in multiples of £) or all of your participation in a Loan for redemption on the Loan Market Platform.
Once the loan is fully subscribed and there are other Lenders interested in the loan, the platform will automatically match up redemption to new participation and execute the transaction at par value with no fee charged to either party.
For the avoidance of doubt, this works both ways: if you see a Deal that you like but it is already subscribed, you can offer to `buy in`.
The Loan Market Platform offers complete visibility regarding this feature: Lenders who hold a participation in a deal are able to see if there are other Lenders wishing to `buy in`, and if a Lender has offered some or all of their holding back onto the market then this appears as `available` to other Lenders.
Finally, the Loan Market Platform executes all transactions on a 'Termination' and 'New Participation' basis so as to avoid any chance of a participation being considered as a tradeable bond - which could cause loss of IHT relief.
You can participate as an individual or via a Special Purpose Vehicle.
With the latter option, we create a Limited Company for you - which as well as offering a lifestyle option also attracts 100% IHT Business Relief after 2 years provided that you participate in adequate loans each year to be considered 'trading'. You should discuss this further with your tax adviser if it is relevant to you.
No Deposit, No Obligation
We do not ask for money from you when you sign up (which only takes 5 minutes) and the only time you will need to send funds is when you have participated in a Deal - the amount you send being the exact participation amount, which then starts to accrue interest at one second past midnight.
Our Loan Market Platform gives you all of the information that you need to decide which deals - if any - you want to participate in, and for the avoidance of doubt if you see nothing that you like then you are under no obligation to participate.