MIDAS SHARE TIPS: LendInvest’s 11.5% interest may not be too good to be true
The latest bond from property firm LendInvest is surprisingly generous. Offering interest of 11.5 per cent a year, it may strike investors as too good to be true.
A closer look offers some reassurance. LendInvest uses clever technology to offer mortgages and loans at speed. The terms are not cheap but they do the trick for professional property investors keen to complete deals quickly, often after an auction.
With a 15-year history, LendInvest has issued several bonds over the past few years, most paying interest of between 5 and 6 per cent.
The latest transaction is offering 11.5 per cent interest for one simple reason: that is the kind of rate big investors are demanding for bonds.
And LendInvest’s deal is open to both big institutions and individuals, with the same terms on offer to both.
Generous: LendInvest’s deal is open to both big institutions and individuals, with the same terms on offer to both
The bonds will mature in 2026, they will be traded on the London Stock Exchange’s retail bond market and interest will be paid twice a year.
Importantly, the transaction is secured against a portfolio of bridging loans, which is an area that LendInvest knows particularly well.
Midas verdict: The bonds from LendInvest are not for the cautious but interest payments are enticing, comfortably beating inflation and other savings rates. An attractive punt for adventurous investors.
Traded on: LSE retail bond market Ticker: LIV4 Contact: lendinvest.com or 020 3747 4188