Investors wishing to sell a loan or loan part on the secondary market have the option to sell either at par (the amount that the borrower is due to repay at the loan maturity date) or apply a discount of up to 20%.
As an example, if you sell a loan or loan part amount of £1,000 on the secondary market at a 5% discount, it will be made available to buyers on the secondary market for £950 (£1,000 * 5%) and you will make a £50 loss on your loan investment if sale goes through. You will keep all interest earned from the loan until the day of the sale.
Note that the example is excluding the Secondary market sale fee, which will be 0.50% on the discounted loan sale amount.
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).
LandlordInvest Limited (Company No. 09245725), registered office 5 Chancery Lane, London, WC2A 1LG