Similar to the loans made by banks on Buy-to-Let properties - a direct investment opportunity you will not get as an individual. Low investment risk at 70% LTV of the purchase risk.
Earn the same interest rates as banks do - tax free in your ISA account. If you take out a mortgage at 70% LTV, you will likely pay a lot less than you can earn here.
Sell your loans at face value, with no minimum term and no exit fee. We arrange for a bridge lender to provide secondary market liquidity - so you access your cash in one day.
Unlike a long term bank mortgage, your loan is made for a maximum term of seven years - so even if secondary markets completely freeze, you are not locked in for more than that.
Both the first charge for the main mortgage and the second charge for the equity mortgage are registered with the land registry in the name of Open Access Finance Ltd (trading as OnStep), which acts as the security trustee on the loan.
The security trustee holds the mortgage security in trust for all investors on the OnStep platform. The security trustee has no economic interest in the loan and does not have any conflict of interest with lenders in relation to the security.
We own the property and administer the tenancy. The tenant remains responsible for all maintenance and repair duties, in lieu of which they receive a discounted rent.
If the tenant is in financial difficulty, we will treat them sympathetically and explore appropriate forbearance options. This will include allowing them to sell their investment in the property to generate funds.
If forbearance options are exhausted, we will work with the tenant to facilitate a sale of the property or find a new tenant in accordance with the interests of the lenders.
The contractual term for the mortgages will be for 7 years. Your loan will be repaid either through a sale of the property or through refinancing with the tenant agreeing a new 7 year rental contract.
There will also be a sophisticated secondary market in operation, which will allow you to exit your loans early.