How does a property-backed investment work?
A property-backed investment is when your money is lent for business purposes and secured against land or property. If the Borrower doesn’t repay, the property can be sold to help recover your investment. It offers potential protection — but your capital is still at risk.
What does “property-backed” actually mean?
It means your investment is secured against a specific piece of UK land or property. If something goes wrong FOLK2FOLK has the legal right to repossess the property and sell it.
What happens to your money when you invest?
- You choose an available loan to invest in
- Your funds are allocated to that loan
- When the loan completes, the borrower begins monthly interest payments
- You receive monthly income into your nominated UK bank account
- At the end of the loan term, the borrower repays the capital
- You get your original investment back (assuming full repayment, but this is not guaranteed)
Is my money guaranteed?
No. Your capital is at risk and not covered by the Financial Services Compensation Scheme (FSCS). While property security can reduce risk, it doesn’t eliminate it.
What are the benefits of this type of investment?
- An attractive interest rate
- Fixed monthly income
- Secured against UK property
- No stock market exposure
- You choose what to invest in
- You’re investment is helping regional British businesses start, grow or diversify
