An investor has decided to invest part of their capital into a 30-month company loan note, which pays a fixed annual coupon of 10%. This decision was made instead of purchasing another rental property, with the interest being paid quarterly.
The investor noted that the 10% fixed return was a significant factor, offering a regular income similar to what they were accustomed to from rental properties. The 30-month term was also described as fitting within wider capital plans.
The company behind the loan note specialises in providing mortgages to older homeowners, including Retirement Interest Only (RIO) mortgages and lifetime mortgages. This involves lending against residential property and generating income from a diverse mortgage portfolio.
Investors are advised that this is a high-risk investment, and there is a possibility of losing all invested money. Protection may not be available if issues arise.