The FSA authorised scheme is based on the concept of peer-to-peer lending and is only suitable for certified sophisticated or professional investors. The Investors will earn a return from the bridging loans they chose to invest in.
The scheme will provide Investors with the opportunity to lend on real estate bridging finance transactions sourced by Mayfair, whether entered into alone or jointly with other Investors.
Mayfair intend to pay a net return on average of 10.2% per annum.
Investors will only be exposed to those bridging loans that they have invested in and the nominee lender will hold a first legal charge in trust for them.
Investors may consider that the recent volatility in the share market and that of commodities in recent years makes investing in bridging loans a possible alternative.
The scheme will be promoted via IFAs who will be paid commission.
Director Shoaib Bux said:
"Investors in other schemes usually have to put their money into a pot and then leave it for the asset manager/lender to lend those monies how they see fit. With our scheme we have put the power to the investor, it is up to them if they want to put money towards a certain deal. They do their own due diligence based on the information provided to them. We believe this scheme will give us a lot of flexibility so that for a good deal with a low LTV where we are competing on the rate, we can speak to our investor pool and ultimately offer a more competitive rate to the borrower."
"We don’t have a pressure a lend unlike other fund models as we are not paying non-utilisation fees or having to provide a return on non-invested funds."
The scheme will be promoted to IFAs and they will be paid commission for their referral of 1% each and every time an investor partakes into the scheme.
Director Yasin Patel said:
"We intend to start promoting and formal launch in the new-year from our Mayfair office."
