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The loans keep clocking up...

Posted on 22/04/2016, by Stuart Sheppard

We’ve designed Octopus Choice to fill a gap. Unlike your typical marketplace lending platform – which matches lenders and borrowers leaves them to get on with it – we like to do things differently.

First of all, we invest in each and every loan ourselves – and would lose our money first in case everything went wrong. It’s called putting your money where your mouth is, and we think it’s what investors deserve.

Secondly, we do all the hard work. Investors don’t have to worry about picking individual loans to invest in but instead can leave it to us to spread their money across many of them to balance their risk.

And finally, we only ever make available for investment those loans which we ourselves have carefully sourced, selected and arranged.

They’re loans that our property lending team has been making for years, and would be making anyway. Since they started in 2009, they’ve lent nearly £1.9 billion across nearly 3,500 loans – and importantly, they’ve lost less than 0.1%. It’s a staggering record.

Practically, that means we’ll fund every single loan before making them available for investment – lending the borrower the full amount up-front, then ‘selling’ individual parts of the loan to customers as they invest.

We’re delighted to say the number of loans that we’ve funded is rising all the time, and we are now spreading investors’ funds over a total of 15 – amounting to nearly £7 million.

All of the loans are really conservative, are made to creditworthy property investors, and are secured against bricks and mortar – making Octopus Choice less risky than investing in stocks and shares.

When we reach scale, our aim will be to spread investors’ money across up to 40 loans, with no more than 5% in any one loan.

Here’s to many more!