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Why People Invest in British Pearl Loans

15 December 2018 • British Pearl

It has been a tough decade for savers with interest rates having hit extreme lows in the wake of the financial crisis. The Bank of England slashed the base rate to just 0.5% in 2009 and therefore generating income has become tough. This has led to individuals having to really shop around and seek out new ways to ensure that their savings work as hard as possible for them.

Combine these low-interest rates with economic growth slowing and financial conditions tightening, and investors also face capital risks as stock market volatility increases.

At times like these, there is a place in every portfolio for investments that offer increased certainty and security. The British Pearl loan investment was designed as a possible solution to these problems.

What does a British Pearl loan investment offer?

The British Pearl loan investments are designed to try and tackle the problems faced right now by savers, namely; capital risk, low income and medium-term uncertainty. Let’s outline each of these in turn.


When investors buy a loan with us, they are acting like a bank and providing a mortgage that is secured against a specific property. The size of the total loan is from 50% to a maximum of 70% of the property purchase price (this is called the loan-to-value or ‘LTV’). This means that the property price would have to fall by around 30% to 50% before any capital would be at risk. Their investment takes priority to be repaid first, before any Share Investors, when a property is sold. A higher LTV will offer a higher interest rate.


The income investors receive is a fixed rate for each property investment and accrues each day that they are invested in a loan. Since a Loan Investor is in a similar position to a bank providing a mortgage, the rates they receive are higher than regular saving products. Depending on the LTV and the period they commit to, we offer interest rates of between 3.75% and 4.40% per year.


Our loan investments initially commit them to an investment term of between 3 and 5 years, although this may be shorter or longer if we felt it was in the interests of our customers to amend the Investment Exit Date. In addition, there is the option to exit early through our Resale Market.

What does all of this mean?

All of this means that, together with our transparent financial information, British Pearl investors are able to make sound investment decisions that offer different levels of income and risk over time. Investors can customise investments with us, to build a portfolio that best suits their needs.

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Your capital is at risk Investing in property involves risk. The value of your investment can go down as well as up and historic performance is not a guide for future performance. Any projections of future performance are based on all information known at the time of share investment or loan, and internal calculations and opinions of British Pearl. These are subject to change and are not guarantees and should not be relied upon as such. Risks include the total loss of your share investment or loan, variable rental income due to property not being rented or a depressed rental market, and inability to sell your share investment or loan due to lack of a buyer. Investing with British Pearl falls outside the remit of the Financial Services Compensation Scheme. Please refer to the Key Risks section of this site for a more comprehensive description of the risks involved.

British Pearl ® is the trading name of British Pearl Limited (Company No. 7151774), a company authorised and regulated by the Financial Conduct Authority (Register No. 674693) and British Pearl Finance Limited (Company No. 10575280 and Register No. 770867), which is an appointed representative of British Pearl Limited. Both companies are wholly owned subsidiaries of British Pearl Group Limited (Company No. 9701436) and all are registered in England and Wales at 4th Floor, 7-10 Chandos Street, Cavendish Square, London, W1G 9DQ