easyMoney is not a cash savings account.
The easyMoney platform matches carefully selected property professionals looking to borrow short term finance (3-12 months) for business purposes, secured against UK property, with investors looking to invest.
The easyMoney team has many years of experience in property and property lending and undertakes rigorous due diligence on all borrowers and the properties against which your money is lent.
All investments contain an element of risk:
Sometimes, for various reasons, underlying borrowers can be late in paying their monthly interest. In this event we may, at our discretion, pay interest to investors on behalf of the underlying borrower for up to two months. If two monthly payments are missed by the borrower, then easyMoney will categorise the loan as being in default. We will work with the borrower to recover any missed payments and to obtain repayment of the loan. As a last resort we will repossess and sell the property.
You can request to sell some or all of your loans at any time, but the ability to sell is dependent on the availability of willing buyers and the loan must have a history of consistent performance with at least 3 months left on the loan term. If there are no willing buyers, you will have to wait for your repayment until the borrower repays or, in the event of default, that we conclude the recovery process.
We shall use our reasonable endeavours to diversify your total portfolio of cash and loans so that any single loan within it does not exceed our target exposure level. We do this by selling part of your initial loan portfolio and re-investing into new loans coming onto the platform over time. At present, the maximum target exposure level for a single loan is 20%, although this may change from time to time and we cannot guarantee that we will achieve our targets (for example, because the number of anticipated borrowers reduces or because loans become non-performing and unsellable). The diversification process may take a period of months to achieve. Until then, your money will be concentrated in a smaller number of loans, meaning the that impact of any individual non-performing loan on your overall investment will be greater. You can view your loan portfolio and any cash held on your ‘My Portfolio’ page.
The management of any conflict of interest is important to us. In order to have a pool of loans available for Regular, IFISA and Pensions investors (“platform investors”) we have arrangements in place with a number of established professional investors to underwrite loans. As these investors typically provide larger sums on a medium to long-term basis, they receive a higher interest rate than platform investors. We make sure that no platform investor gets priority over any other platform investor based on any factor other than the time at which they place their investment.
If easyMoney were to stop operating the existing loans would be passed to a standby servicing company to take over the management of the loan book and oversee the return of your investment.
Any money waiting to be allocated to loans will be held within segregated client accounts at NatWest and during this period is covered by the Financial Services Compensation Scheme (FSCS) until it is invested.
Last updated: 2018-03-31