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Investing
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Risks
Risks
Ensure that you understand and are comfortable with the risks before you invest.
Statistics
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About
Investing
Risks
Ensure that you understand and are comfortable with the risks before you invest.
Statistics
About
The loans we make available through Octopus Choice have all been carefully selected by our lending team, Octopus Property, and have a few things in common.
Backed by UK residential and commercial property. You can view a breakdown here.
Our maximum loan to value (LTV) ratio is 76%. The current average is 60%.
Generally around two years. Some last 25 years, but have an initial fixed term of around three years.
Short-term loans of up to 18 months. Can be used to buy an asset quickly.
Loans to landlords, sometimes up to 25 years but with initial fixed terms of between two and five years.
Loans last two to three years, with the option to exit within the first seven months.
Loans of between two and five years, secured against commercial properties.
Octopus Property will only agree to make a loan if they're confident that the borrower can repay. And we're so confident in their underwriting that we invest 5% with you in each and every one. Here are the things their creadit team look out for when assessing a loan.
Based on independent valuations which take account of its condition, location and rental possibility — as well as local market movement.
Based on their credit profile, equity in the deal, additional security and total exposure to borrowing beyond the loan they're applying for.
If it's by selling the property, then we'll look even more closely at it's condition. If it's by taking out another loan, then we'll narrow in on their credit profile.
Remember your capital is at risk, and investments aren't protected by the FSCS: see the risks page for more info.
