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Conservative, property-backed loans

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.

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They're all secured

Backed by UK residential and commercial property. You can view a breakdown here.

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They're all conservative

Our maximum loan to value (LTV) ratio is 76%. The current average is 60%.

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They're typically short-term

Generally around two years. Some last 25 years, but have an initial fixed term of around three years.

What type of loans are they?

Bridging property1

Short-term loans of up to 18 months. Can be used to buy an asset quickly.

Short and longer term buy-to-let property2

Loans to landlords, sometimes up to 25 years but with initial fixed terms of between two and five years.

Bridge-to-let property3

Loans last two to three years, with the option to exit within the first seven months.

Commercial property4

Loans of between two and five years, secured against commercial properties.

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411

Loans funded to date

All data correct as of 17th June, 2018.

What do we look out for

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.

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What's the property like?

Based on independent valuations which take account of its condition, location and rental possibility — as well as local market movement.

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What's the borrower like?

Based on their credit profile, equity in the deal, additional security and total exposure to borrowing beyond the loan they're applying for.

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How are they going to repay?

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.

Ready to begin?

Remember your capital is at risk, and investments aren't protected by the FSCS: see the risks page for more info.