As you may know by now, we have recently launched a Property Moose Mortgage. To highlight why we believe the product stands out from the crowd amongst its competitors, we decided to create a comparison. The table below highlights 3 similar product types; the Property Moose Mortgage, the LandBay Mortgage and the Octopus Choice Mortgage. We compared a variety of features, including interest rates, LTVs and visibility, to highlight how unique we believe our product to be.
Based on our review of the lending opportunities currently available on the market, we believe the Property Moose Mortgage offers a competitive edge.
| Property Moose Mortgage Loans | LandBay Mortgages | Octopus Choice | |
|
Interest Rate |
5% p.a. fixed | 3.69% p.a. fixed | Target 4.1% p.a. |
| Type of loans | Buy to let mortgages | Buy to let mortgages | Buy to let mortgages |
| Visibility of property/borrower | Yes, investors select specific properties to lend against | No – platform makes investments on behalf of investor | No - platform makes investments on behalf of investor |
| Security Type | First Charge | First Charge |
First Charge |
|
Maximum LTV |
Up to 55% | Up to 80% | Up to 70% |
| Term of loans | As specified when investing and (typically 3 years) | Up to 10 years with no visibility due to “black box” lending | Unknown |
| Secondary Market to Exit Early | Yes – no fees for selling | Yes | Yes |
|
Provision Fund |
Yes, 6 – 12 months’ interest cover held for each loan | Yes – 0.6% of loan book held as provision | No but 5% of the loans are at first risk by Octopus |
| Platform Failure Protection | Yes – all investments are fully segregated and owned by the investors. Property Moose also has contractual agreements with Resolution Compliance Ltd to take over the operations of investments should Property Moose fail.Cash held in Barclays client account with FSCS protection. | Yes – arrangements in place to operate the platform should LandBay fail. Cash held in Barclays and RBS client account with FSCS protection. | Unknown |
Some of our unique selling points
1. Higher interest rate, lower risk
The Property Moose Mortgage’s fixed interest rate of 5% p.a. is higher than both LandBay mortgages and Octopus Choice mortgages, which are 3.69% p.a. and a target of 4.2% p.a. respectively. In addition to this, our maximum LTV is lower than our competitors, which leads us to believe that our product can not only offer market leading returns, but also holds lower risk.
2. Visibility of property/borrower
Out of the options compared, our product is the only one which offers full visibility. Property Moose investors can select specific properties to lend against, whereas with the other platforms, lending opportunities are black-boxed, which means the platforms makes investments on behalf of the lender. As a result, Property Moose investors have full control over their investment decisions, allowing them to build bespoke investment portfolios, suited to their individual goals.
3. Provision fund protection and regular income
All of our loans to Property Moose SPVs require a provision fund of between 6 and 12 months’ interest cover to be held on account to cover any void periods. This means that interest returns should be consistently paid on a monthly basis, even when the property is empty.
4. Term length and secondary market
The term length for the Property Moose Mortgage can be specified for each investment, and if you wish to do so, you can exit your investment early by selling your shares on our secondary market, provided you find a willing buyer. A potential benefit of this is that there is no fee for selling your shares. Should you wish to liquidise your capital early, you can list your shares at a discount to potentially incentivise buyers.
We hope our members will utilise this product as an opportunity to diversify their investment portfolios, whilst also enjoying a healthy return of 5% p.a., paid monthly.
Sources
- https://landbay.co.uk/investments/classic-account
- https://landbay.co.uk/how-it-works
- https://landbayhelp.zendesk.com/hc/en-us/articles/206604959-How-do-the-loans-work-
- https://landbay.co.uk/how-it-works
- https://octopuschoice.com/
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
