The investors money is in an investment that is almost risk free:
- Our lending criteria is very tight
- The investor will not be affected by any bad debt, as we secure a 1st charge and sub-charge over the assets
- Our loan to value is between 50-65% of 90 day valuation which works out to be under 50% of Market value, therefore there is always sufficient equity in the property
- The investor’s money will be held in a solicitors account and will not be released until upon time of drawdown and completion of the bridging deal. We have no access to the funds, they are released directly from the solicitor’s client account to the borrower.
- Even in the nominal case of bad debt, the investor will keep receiving interest until redemption of the loan