Investors are likely to see a further reduction in already-low savings account interest rates after the Bank of England’s base rate cut, says Fitzrovia Finance.This, and current stock market falls, could see retail investors focus more on alternative investment opportunities such as secured property investment platforms.
Brad Bauman, CEO, Fitzrovia Finance says: “Savers and investors have been badly bruised by the recent stock market falls, and now they will most likely suffer banks and building societies reducing interest rates on their savings accounts.
“We expect this to cause a significant increase in people moving money from these accounts to property investment platforms – for better returns, or to reduce exposure to a falling stock market. Those looking to invest in this sector need to be aware that they are not a direct replacement for cash savings accounts. Although the investments on our platform are secured on real estate, as your money is at risk and not protected by the FSCS.
“Many investment opportunities are available on property platforms, but they come with different levels of risk that should be closely compared. Investors who are unsure of what to do should speak to a professional financial adviser.”
From an investment of GBP1,000 or more, investors can benefit from Fitzrovia Finance’s attractive returns that average 5.5 per cent pa. These come from investing in loans to carefully-selected developers, secured on quality properties with first charge security and more than 150 per cent asset cover. This means every GBP100 of loan is secured against GBP150 of bricks-and-mortar assets. If invested through Fitzrovia’s IFISA, these returns can be tax-free.
To date, Fitzrovia Finance has encountered no defaults.
Fitzrovia Finance provides investors with the reassurance of a business built and run by a highly-experienced team operating a ‘7-Steps Risk Control’ process** developed over many years of experience and success in property lending. The process rejects 80% to 90% of loan requests. Typical loan durations are 12 to 36 months and the loan-to-value is limited to 65% or less of development value, further controlling risk.