Invest in property loans - the smart way

Target 6.0% p.a. net of fees from a conservative lending portfolio secured against UK property.

With the advent of new tax and mortgage regulations, accessing returns from buy-to-let and direct property investing is harder than it once was.  However, lending provides an opportunity to earn a passive income from property, with attractive risk-adjusted returns.

BondMason has achieved a stable and steady investment track record from a conservative loan portfolio - with an average LTV of 56% - secured against UK property. 

 

Refurbishment finance

Most property loans are used to refurbish property, with the remainder for small-scale developments such as converting a house into a few flats or building a house. 

All projects have planning permission or are completed under permitted development rules.

These types of borrowers operate in niche, higher-margin markets where demand is strong and the investment may be less vulnerable to any potential downturn

Conservative loan-to-value

The average loan-to-value (LTV) of property loans across BondMason is 56%.  

LTV is used to compare the difference between the value of the property and the amount of money being borrowed against it. The higher the ratio of the loan-to-value, the more risky it is for the lender. 

Valuations are independent, typically conducted by professional surveyors adhering to red-book processes.

 

Curated and manually reviewed

The BondMason Investment team reviews every loan, with 1-in-4 loans being approved based on our strict assessment criteria.

We conduct additional due diligence and verify valuations with our own analysis, research and marketability assessments.

In short, we roll up our sleeves and do the leg work to ensure the decisions we make are based on our own insight, backed by years of experience (as opposed to Artificial Intelligence or Big Data).

Loan profile facts and figures

Borrower use of proceeds: Refurbishment

Loan-to-value: 56%

Average term of loan: 6 - 12 months

Geographic diversity: Across the UK

Average loan size: £340k

 

Data correct as at 9 October 2018

BondMason Clients have achieved an average net return of 6.0% p.a. in every year since 2015 (after fees, losses and cash drag).