Conservative, property-backed loans

The loans we make available through Octopus Choice have all been carefully selected by our appointed lending team, Octopus Real Estate, and have a few things in common.

They're all secured

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

They're all conservative

The maximum loan to value (LTV) ratio is 76%. The current average is 61%. Correct as of 30th September 2019.

They’re a range of terms

Loans typically have a short term of around two years. However, they can be as long as 25 years. In such cases they would have an initial fixed term of around three years.

Your money is only invested into loans secured against property. This means that when the borrowers don’t meet the repayment terms for their loan, the property can be sold and the proceeds used to fund the repayment. However, the value of your investment and any income from it can still go up or down. So, you may not get back the full amount invested. Your investment could also be adversely affected by a downturn in the property market. Instant access to your money can't be guaranteed. And, don't forget, Peer-to-peer investments are not protected by the Financial Services Compensation Scheme (FSCS).

What types 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.



Loans funded to date

All data correct as of 30th September 2019.

What does Octopus Real Estate look out for

Octopus Real Estate 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 Octopus invests with you in each and every one. Here are the things their credit team look out for when assessing a loan. Don't forget, if you choose to invest, your capital will be at risk. So, the value of your investment and any income from it, can fall or rise. You may not get back the full amount you put in. You can find a brief summary on the due diligence we perform on borrowers and the fees they are charged here.

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.

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.

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.