The following risk warning refers specifically to the following product categories:
- Peer to Peer Lending
- Property Development Investing
- IF ISA
A loan, even if secured against a property, contains risks. You may not get the returns expected and your capital is at risk.
Any loans made secured against property should only be considered as part of a diverse investment portfolio which contains investments of different kinds and where you do not put too great a proportion of your capital into one particular type of investment.
The market value of property can go down as well as up and the return of your capital may be dependent upon the Borrower selling a property. This can never be guaranteed.
Repayment of loans is not a certainty, and from time to time borrowers may default. THC try to mitigate this risk by having a full due diligence process to assess the project and the borrower before listing the investment on the platform. Unexpected things can happen and the due diligence process does not completely remove the risk inherent in lending. You may not receive all your capital back and the process to repossess and sell a property could alter the time your money is tied in.
A peer to peer investment made through this platform is illiquid – there is no ability to transfer the benefit to a third party. Once the loan is made you are committed to it for the period of the loan.
Financial Services Compensation Scheme
Whilst your money is held in a segregated client bank account it will be protected by the Financial Services Compensation Scheme up to £85,000. However, there is no ability to make a claim under the Financial Services Compensation Scheme should the investment fail for any reason.