Secondary market for first charge mortgages

How can I sell my investment?

You can list any amount of investment in any first charge mortgage for sell on the secondary market. If there is liquidity in the market, that is there are sufficient market participants, it will be sold and you will be able to withdraw the cash.

To ensure smooth operations of the secondary market, we arrange for a bridge lender to provide liquidity: your loans are purchased by the bridge lender and then listed for sale again. This way you do not have to wait for an active sale order from another market participant and can sell your loans immediately.

How long does it take to sell my investment?

Your loans will be sold immediately and the cash will be available in your account to be withdrawn at the same time, provided that the bridge lender's facility is not exhausted in funding existing new loans or in commitments to new loans.

Please note that while it is our expectation to have the bridge lenders facility available throughout the term of the loans, we cannot guarantee that such a facility will be available at all times or that the facility will be large enough to meet the turnover demands of the secondary market.

If the bridge lender's facility is exhausted, we will operate the secondary market on the basis of 'first to list' will be the 'first to sell', where the listings are for the same price. The time taken to sell your investments will then depend on the demand for loans from new investors.

At what price can I sell my loans?

You can choose to sell at a discount but you cannot sell your loans at a premium - that is higher than the face value. When you buy or sell loans they will always be without accrued and unpaid interest. This means that if you sell your loans 14 days after interest was paid on the account, you will lose 14 days of interest.

Similarly if you buy loans 14 days after interest was paid on the account, you will gain 14 days of interest, which will be paid on the next interest payment date.

What if there is no liquidity in the secondary market?

In such an event you will have to hold the loans to maturity, which is seven years from origination, unless the tenant purchases the house in advance in which case, your loan will be repaid in full.

At the end of seven years (the loan term), the loans become due and will repaid either through refinancing or sale of the property. If the property is being sold, rather than being refinanced, there may be a delay in receiving repayment pending completion of sale.