The Property Secured Investment Account (PSIA) is a way to invest exclusively in property backed loans with automatic diversification intended to help you spread your risk across a diverse range of lending.
Every single loan considered for this account is automatically selected or rejected upon the basis of the level of property security that it offers. The loans automatically selected for investment by this account are only those that have no expected loss in the case of that loan defaulting in the future, even after any estimated recovery costs.
There may well be additional types of security that we take for these loans such as Personal Guarantees from the borrower but this is not factored in to the calculation of the property security required for this account and is in addition to that. This approach to security is intended to provide significant protection in the case of a loan default where the security would need to be resold to get back the loan capital. In addition the account has the added protection of a discretionary Provision Fund, principally to cover recovery costs for any defaulted loans but also in case any security for loans differs very substantially from the independent valuer's expectation at the time of any recovery. We have sought to make this the most rigorous selection of loans and of their security of all of our Investment Accounts.
Why Invest In The Property Secured Investment Account?
The Property Secured Investment Account (PSIA) allows investors to invest automatically in property backed loans that always take land or property security that substantially exceeds the loan value. All loans have also passed Assetz Capital's strict credit checks that assess loan affordability and likelihood of the loan being repaid at the end of the term. For loans to be eligible for this account they must have no expected loss in case of a default, even after recovery costs. This does not mean losses are not possible on loans within the account but rather that they are unlikely in normal circumstances and based upon the independent valuer’s opinion and even after a substantial reduction in the security value caused by the quick sale of the security in order to recover the loan capital, and also after payment of recovery costs.
Property is one of the most tangible types of security available when lending and historically has always offered relatively sound protection for lenders in bad economic times. In good times the security can also grow in value, potentially making a loan more secure as the value of the security increases. In addition, many property assets produce income in the form of rent and this can provide income even if a loan defaults, prior to disposal of the property.
The PSIA offers a target, capped interest rate for investors of 5.50% gross per annum (before tax and any loan losses). This rate varies, so any rate changes will be announced at the start of each month.
This account also benefits from a separate, discretionary Provision Fund.
*NB: Projected Annualised Return
*This figure has been provided by the partner platform and not by OFF3R. It has been calculated as a projected annualised gross return. This means that the return figure reported over 12 months does not take in to account any platform fees or charges nor any tax that may need to be paid by the investor. We present an annualised figure regardless of term for comparison purposes only.