Statistics

How We Help You Manage Your Risk

When making an investment there is always a level of risk*, at Fitzrovia Finance, we do our utmost to help you minimise these risks.

Asset Backed Lending

Fitzrovia Finance exclusively operates an asset backed lending model. What this means is, unlike most peer to peer lending platforms, we secure bricks and mortar against your lending. To further solidify our position and your investment, our expert property lending team methodically:

  • Executes our proprietary “7 Steps risk controls ”
  • Takes a first charge security on bricks and mortar
  • Secures £150 bricks and mortar assets coverage for every £100 loan
  • Adds up to a 25% borrower guarantee

Proven Lending Process: the 7 Steps risk controls

Fitzrovia Finance takes a case-by-case approach to its property lending decisions. Our Loan Officers follow a strict methodology; they evaluate each loan request individually and a large number of criteria are taken into consideration when risk assessing a borrower and appraising a loan.

For instance, when it comes to determine the creditworthiness of our corporate borrowers, our dedicated Loan Officers not only establish a strong face-to face relationship with each borrower, they would also run strict enquiries such as establishing the Failure Score of the borrowing entity with DB and running KYC and AML checks for all directors or shareholders with a shareholding of 25% or more in the borrowing entity with Experian. The same stringent controls are performed on the property. In fact, each property listed on our platform is accompanied by a valuation report summary, which includes key information to help you make a sound investment decision.

Proven Process:
7 Steps risk controls

  • Property Due Diligence
  • Borrower Due Diligence
  • Legal first charge security
  • 1.5x asset cover
  • 25% additional borrower guarantee
  • Experienced Credit Committee approval
  • Continuous active loan management

Understanding the Risk Bands and the Estimated Default Rate

We have developed the grid below for the classification of our loans by risk bands and we have identified each category by their level of LTV (Loan-to-Value).

Risk Band A+ A B C
Loan-to-Value (%) 0 - 60% 60% - 65% 65% - 75% >75%
Estimated annual bad debt (%) 0.0% 0.5% 1.0% 1.8%

While we have also attributed estimated annual bad debt levels in the grid above, it is important to highlight that this information is representative of the P2P real estate lending industry data as a whole. Fitzrovia Finance is currently not in a position to provide estimated bad debt data based on its actual loan book, simply because we have not traded sufficiently enough under the Fitzrovia Finance brand and we believe that any bad debt estimates shared with you at this stage would be premature and misleading. Our aim however is to be transparent with all our information. As and when bad debt data is available, we will publish it here.

Understanding Taxation*

We pay interest gross; as such you may need to pay income tax on your earnings. Given the nuances of each individual investor’s personal tax affairs, it would be impossible for us to estimate the amount of income tax payable by you on interest income. We therefore highly recommend that you consider obtaining suitable tax advice.

*Independent advice
It is our duty to advise you to seek independent financial advice in case you are unsure about the risk to your capital and to ensure that the Fitzrovia Finance Peer To Peer platform is suitable for you.

Facts and Figures

Our loan book performance will soon be available here. You will be able to use this information to guide your lending decisions.

£100M

FUNDED

Expert Management

£100m of loans funded

100 years accumulated experience

150%

COVERAGE

Security Coverage

1.5X asset coverage with

first charge security

7

STEPS

Risk Control

Process With Our

7 Steps risk controls

Postcode Type Property value Quantum LTGDV Risk Band Investors rate Term Status
SW9 Mixed-use Investment Loan in London £2,865,000 £1,000,000 34.9% A+ 6.50% 27 Live
NW2 Residential Bridge Loan in West Hampstead £2,400,000 £1,010,740 42.1% A+ 6.00% 14 Repaid
IG10 Residential Bridge Loan in Loughton £1,925,000 £1,015,000 52.7% A+ 6.00% 37 Repaid
KT8 Residential Investment Loan in East Molesley £1,700,000 £1,100,000 64.7% A 5.50% 26 Live
RG9 Commercial Bridge Loan in Henley-on-Thames £2,000,000 £1,300,000 65.0% A 6.50% 33 Repaid
CV47 Industrial Bridge Loan in Warwickshire £2,500,000 £1,500,000 60.0% A+ 7.00% 12 Repaid
MK9 Commercial Bridge Loan in Milton Keynes £2,000,000 £1,500,000 75.0% B 8.00% 17 Repaid
GU22 Residential Development Loan In Woking £3,250,000 £1,600,500 49.3% A+ 6.50% 20 Repaid
MK9 Commercial Bridge Loan in Milton Keynes £4,710,000 £1,800,000 38.2% A+ 6.50% 21 Live
CT1 Residential Bridge Loan in Canterbury £3,405,000 £2,194,000 64.4% A 5.25% 7 Live
UB3 Residential Bridge Loan in Hayes £5,765,000 £3,525,000 61.1% A 6.50% 20 Live
RM7 Commercial Bridge Loan in Romford £6,100,000 £3,660,000 60.0% A+ 6.00% 20 Live
MK15 Commercial Bridge Loan in Milton Keynes £7,450,000 £4,437,000 59.6% A+ 5.00% 14 Live

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