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I was looking for opinions on Montello Income Fund (6pc pa used for bridging loans)
I don't have experience of the Montello Income Fund but Montello are connected with the p2p lender LendInvest.
I have invested with LendInvest since last year and have been very impressed with how it works. The funds are lent out secured by a first legal charge on the property in question. Each loan has details including a property description, market value, anticipated rental income. In addition, the LTV is shown and whether the loan is a Tranche A eg 0 - 60% LTV or Tranche B eg 61% - 75%
I have avoided any Tranche B loans eg 61% - 75% LTV as there is a chance of some loss with relatively small falls in house prices. Also risk of 'wipe -out' with more severe falls in prices. I have tended to stick to LTVs around 40% - 50% as a Tranche A and that gives me reasonable reassurance that I shouldn't be exposed to losses. With a 40% LTV, I shouldn't face losses unless the property value falls more than 60%.
Of course there is always the risk that losses will be incurred due to problems with the valuation, legal charge or LendInvest going out of business so it's an investment where we have restricted our total investment. The interest on the loans is paid monthly by lenders and is credited to the LendInvest account monthly and I have withdrawn this and the money arrives by Faster Payment the next day.
LendInvest have recently reduced their minimum investment per loan to £1,000 so it should be possible to get a good spread of loans. They currently have an incentive whereby you will receive £100 if you invest £5,000
It can be a little time consuming as loans can be redeemed ahead of term so I can see that the Income Fund maybe an easy alternative. I'm eagerly awaiting the p2p LISA which means these returns will become tax free!
( Not a recommendation and please do your own research before investing )
Thanks for the lendinvest pointer, and yes actually I have something with them (but I'm not very happy with the p2p-ness, I think if the platform went wrong it's possible the lenders might suffer).
Also in my case the Income fund is acceptable in a Insurance saving scheme I'm in, the p2p isn't.
Interesting links between the two businesses:
Or you could look at GLIF which is transforming itself , yielding over 8% .
No thanks, not for now at any rate, I'm doing my own p2p.
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