To date, Vestrow has had an exemplary track record. This is because the Directors of Vestrow co-invest. Of course, this does not mean that your future interest payments or capital are guaranteed, but we believe that our experience, loan-to-value ratios and the type of assets we take as collateral all allow us to carefully select loans and reduce the risk of you losing your capital.
The Directors of Vestrow co-invest in all loans. In addition, the Directors of Vestrow put their own money into loans in a first loss position. This means that the Vestrow Directors would lose money before investors do.
seasoned investors, our main focus is to reduce the capital risk,
whilst maximising the returns such investments deliver, providing a wide
range of investment opportunities normally reserved for larger
have a highly trained, skilled and experienced team of asset
underwriters who meticulously assess all potential investment
opportunities, they follow detailed policies and procedures supported by
our 72 point Vestrow Verification Check (VVC) process.
We use professional property valuers, RICS surveyor to value the property assets and ensure that our lending does not exceed the agreed loan to value so that, in the unlikely event of a default there is sufficient equity to recover the capital.
To ensure prompt repayment, we work closely with the borrower during the course of the loan, and where appropriate, when property development is involved, we appoint a quantity surveyor to monitor the project’s progress against the loan.
We are experts in remediation and recovery, should any loan go overdue and, wherever necessary we employ professional specialists to assist in recouping any losses.
Whilst your capital is at risk and returns are not guaranteed, we have a detailed internal compliance process managed by our proficient Compliance Team in order to ensure we are safeguarding against financial crime and protecting the interest of all our investors, all of the time.
Vestrow arranges loans for individuals and businesses which are secured by an asset.
This means that if the borrower is unable to repay the loan, Vestrow, as agent for the investor, can sell the asset in order to repay the loan, although this does not mean that the return of your capital is guaranteed and there may be a delay in the return of funds.
Should an investor wish to lend money against a particular loan, the investor can select through Vestrow’s secure login area. Investors are under no obligation to lend against any loans if they do not wish to do so. Statements are available online and are updated daily.
will normally arrange for a third party valuation to be provided, on
which investors can rely. This means that if the asset were to sell for
well below the value in that third party valuation, then Vestrow should
be able to pursue a claim of negligence against the valuer and thus
recover sufficient proceeds to repay the loan.
Loans which require funding are posted
on the Vestrow website with details of the value, interest rate payable
and security of the asset. Interest rates vary, depending on the risk of
each loan. Most offer 8-12% per annum. Those with a low risk may pay as
little as 8% pa whereas riskier or more complex loans we may pay up to
Whilst your capital and interest is not guaranteed we will always secure every investment by taking a legal charge over the asset as security. The loan period varies from 6-18 months. However, the borrower may repay early – in which case investors are paid up to the date of repayment. Once the loan is repaid, interest and capital are returned to the investors account, and can then be withdrawn or reinvested.
No investment is without risk. Vestrow manages this by restricting the loan to value (LTV) to typically 70%. We do not use the borrowers’ credit scores as part of our lending criteria as we rely on the underlying asset as security. We do, however, perform background checks on our borrowers and rigorous due diligence on ownership and title. In the event of a default, for pawn loans we sell the asset at auction, and for property bridging and development loans we appoint a receiver. Interest continues to accrue until the asset is sold.
Despite these measures, your capital does remain at risk. Investors should always review each loan carefully and decide on whether the risk vs reward proposition is acceptable to them.