Risk Warning - Direct Lending

Returns are not guaranteed and your capital is at risk.

At BondMason we focus on capital preservation. Carefully selecting lending partners and underlying loans, with a focus on those protected by security - typically backed by residential or commercial property in the UK.

Loans

All loans, even secured, contain risks. To aid transparency loans on the BondMason platform are classified as (1) Live (2) Watchlist or (3) Recovery (4) Write Off.

Watchlist

  • When a signal has occurred that a loan repayment may be missed loans are moved onto Watchlist.  We take a prudent approach and often flag loans as ‘Watchlist’ as a precaution. This does not necessarily mean that the position will result in a loss.
  • Approximately 15% of underlying loans have been classified as 'Watchlist' at some point during their life with us.

Recovery

  • Investments are marked as in Recovery if they have moved beyond ‘Watchlist’ and often reflect a lack of engagement by a borrower or the beginning of a recovery process. Investments in recovery may or may not lead to a loss.  
  •  Approximately 5% of underlying loans have historically been classified as Recovery.

Write Off

  • When a recovery has been concluded and there is a shortfall we mark the balance as a Write Off.
  • Total capital writeoffs arising from non-performing loans has been less than 0.4% p.a. to date

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Liquidity

We aim to provide liquidity within 7-14 days. This is not a guarantee. You will only be able to liquidate ‘Live’ loans. Underlying loans in Watchlist and Recovery are not able to be liquidated until the situation has been remedied or recovery efforts concluded.

Financial Services Compensation Scheme

Your money is not covered by the Financial Services Compensation Scheme (FSCS)

FCA

BondMason is not regulated by the Financial Conduct Authority (FCA)

See our full Terms and Conditions