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The Assetz Capital platform is no longer open to investment from individual investors. No new investments into peer-to-peer loans are possible and, as a result, no new funds should be deposited. The existing loan book relating to the Retail platform is now in run-off and this will, over time, deliver the return of capital to investors. Full information can be found here . Existing Retail lenders can still log in, view information regarding their account and loan holdings and operate their account in accordance with the information regarding the run-off provided on the link above. Please see this important message regarding the currency of the information on the pages on this website.

Assetz Capital launches property secured investment account

Assetz Capital launches property secured investment account

ASSETZ CAPITAL LAUNCHES PROPERTY SECURED INVESTMENT ACCOUNT

  • Lenders receive secured, property-backed loans with automatic diversification.
  • The account has a capped target return of 5.50% gross per annum, before allowances for tax or any possible losses not covered by Assetz Capital’s discretionary Provision Fund.
  • New investment account lends to UK SMEs, highly secured by realisable security with modest Loan to Values.
  • Fee-free transfer and/or withdrawal of funds.

 

Assetz Capital, one of the UK’s fastest growing peer-to-peer alternative finance platforms, has today launched the Property Secured Investment Account (PSIA), with Provision Fund*, which becomes the fifth specialist investment account available to investors on the platform.

The new account allows investors to invest automatically in property-backed loans that always take land or property security that substantially exceeds the loan value. All loans have also passed Assetz Capital's strict credit checks that assess loan affordability and likelihood of the loan being repaid at the end of the term. The maximum loan-to-value ratio for individual loans eligible for automatic selection for this account depends upon the type of loan but in all cases is set at a level where the expected capital loss in the case of a default on that loan is zero (see web site for details).

The new PSIA has a target rate of 5.50% gross per annum loan interest whilst also benefiting from the added protection of a discretionary Provision Fund. Investors can automatically invest any sum upwards of £1 in a diverse portfolio of secured business loans that have passed Assetz Capital’s strict credit checks.

Unlike some other P2P platforms, there is currently no fee for selling your loans on the secondary market, subject to demand from other investors. The account will also be eligible for the IF ISA once Assetz Capital has been given full approval to offer an ISA solution. All Assetz Capital investments can be made and managed through Assetz Capital’s comprehensive and market leading members’ portal.

Stuart Law, CEO at Assetz Capital commented, “Historically, property backed investments have offered sound protection for lenders, even in difficult economic environments. We have always based our business on secured lending with property, which is the most common asset registered by borrowers. Nonetheless there is a further level of security that can be achieved by limiting the Loan to Value to levels where expected losses on each particular loan are zero. Unlike most other assets, property can also increase in value, which can actually make the loan more secure as time goes by. The new Property Secured Investment Account is designed for investors that want that extra level of security on their investments, although we always point out that capital is at risk. We predict this will swiftly become one of our most popular accounts - it’s something our more cautious investors have been requesting for a while.”

The new PSIA follows in the footsteps of the Green Energy Income Account (GEIA) the Great British Business Account (GBBA), Quick Access Account(QAA) and 30 Day Access Account (30DAA) and has been established to allow investors to make automatic investments in secured business loans that have passed the platform’s strict credit policy.

- June 7, 2017

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