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%.
For 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% of the discounted loan sale amount.
Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
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 330 High Holborn, London, WC2A 1HL
