Octopus Choice generates £5m interest for investors
OCTOPUS Choice has accrued more than £5m in interest for its investors since launching in 2016, according to figures released by the peer-to-peer lending platform.
The platform, which offers loans backed by bricks and mortar, has funded more than 400 loans and has seen almost £200m invested.
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Sam Handfield-Jones, head of Octopus Choice, said the lender has struck a chord with investors who want to diversify their portfolio or target an attractive yield without the ups and downs of the stock market.
Octopus Choice’s average loan-to-value is 61 per cent, with a maximum of 76 per cent.
It invests five per cent in each loan, with investors getting their initial investment back first.
Around 70 per cent of loans go towards buy-to-let properties, 16 per cent bridge-to-let, eight per cent commercial and six per cent bridging loans.
The target interest rate for investors is around four per cent.
“It’s also important that investors and advisers look past the P2P label,” Handfield-Jones said. “All that refers to is the technology, while what really matters is the nature of the underlying loans that investors are funding.”