Decisions to protect investors should be at the heart of any peer-to-peer offering, according to specialist bridging lender Mayfair Bridging.
The short term lender – based in Preston and London – believes that the peer-to-peer market must evolve the way in which investments are offered to better serve the interests of those who contribute, particularly through the use of insurance protecting against potential fraud or negligence.
The news comes of the back of the launch of Mayfair’s own UCIS investment scheme in December, as reported in B&C.
Shoaib Bux, Director at Mayfair Bridging, explained that the value of extra protection safeguards needs to be an integral part of the overall package.
He said: “At a time when investors are looking for better returns than those being offered by conventional investment vehicles, it is incumbent on peer-to-peer businesses involved in lending to individuals (using property as security), to offer not only good returns but also make every effort to minimise risk for the investor where they can.”
Shoaib added: “That is why on top of the control we offer investors to choose the investments they want to make, as well as encouraging their own due diligence on potential cases, we have invested in comprehensive insurance to supplement our own stringent underwriting of every case. This provides investors with an important extra layer of protection to cover against identity and borrower fraud, as well as title defects, deficiencies in property searches and solicitor negligence.
“In designing our scheme, we have placed the highest priority on offering investors great returns while not skimping on measures to supplement our already vigorous and robust underwriting. Taking the precautions which we have shows the way that peer-to-peer offerings can meet the requirements of today’s investor.”
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