What is a tranched loan?

We may offer tranched loans. It means that a loan that is secured by a first or a second legal charge over a property(ies) (along with any other loan security), maybe offered in two separate tranches to lenders on the lending platform: (1) a senior (tranche) loan and (2) a junior (tranche) loan.

The senior loan will have a lower loan-to-value (LTV) ratio and interest rate payable to lenders than the junior loan. The senior loan could therefore be considered to be less risky than the junior loan.

Further, the loan repayment priorities between the two tranches are as follows (which you unconditionally agree to when making loan investment(s) into either or both tranches): Following the full settlement of the Security Agent’s fees (if any) and as set out in Clause 11.5, all monies received shall first be applied towards discharge of the senior loan principal balance and second, once the senior loan’s principal balance has been discharged in full, towards discharge of the junior loan’s principal balance. The remaining balance, if any, shall be applied towards the repayment of all accrued and unpaid interest due to the senior loan and second, once all accrued and unpaid interest due to the senior loan’s has been repaid full, towards all accrued and unpaid interest due to the junior loan.

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Investment through LandlordInvest involves lending to individuals and companies, so your investment can go down as well as up. Borrowing through LandlordInvest involves entering into a mortgage contract secured against a property as the borrower. Your property may be repossessed if you do not keep up repayments on your mortgage.

LandlordInvest Limited is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 660926). LandlordInvest Limited is not covered by the Financial Services Compensation Scheme (FSCS).

Loans provided to borrowers through LandlordInvest are provided solely for business purposes. Loans are therefore not regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974. You should seek independent legal advice if you are in any doubt as to the consequences of the loan not being a regulated agreement under those Acts.

LandlordInvest Limited (Company No. 09245725), registered office 5 Chancery Lane, London, WC2A 1LG

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