What am I investing in?
You will invest in a deposit secured against a specific property. If you are investing in the fixed mortgage, the returns will be fixed.
Is my investment secured?
Your investment is not secured and you may lose your funds if the property cannot produce any positive cash flow.
Are my investments covered by the Financial Services Compensation Scheme (FSCS)?
No, investments in loans are not protected by the FSCS. However, any funds that are held as cash (not invested in loans) are held in a segregated client money account at Barclays Bank. This is a separate bank account that is ring-fenced from the monies of OnStep and these funds are protected by the FSCS to a limit of £85,000.
Can secondary market trading be suspended on a mortgage?
Yes, if there is any adverse report on the performance of the loan, such as rental payments not being maintained, secondary market trading may be suspended to protect new investors. However, the likelihood of this happening is small given our strict tenant selection criteria.
What happens if Hui Property ceases to exist or falls into financial distress?
We undertake to establish systems and processes in place to protect borrowers and lenders on our platform, in the event the platform fails for whatever reason, including insolvency.