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Peer2Peer Finance News | September 18, 2019

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Octopus Choice generates £5m interest for investors

Octopus Choice generates £5m interest for investors
Emily Perryman

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.

Read more: Octopus Choice opens IFISA for transfers

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.

Read more: Octopus Choice targets £200m of lending in two years

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.”

Read more: The FCA shouldn’t tar P2P with a single brush, says Octopus Choice