London Capital and Finance

daniel80 · 22 October 2015 at 6:31PM

Anyone had any dealing with this company. My son has 25k to invest for only 2 years as it will be a house deposit. Iv`e told him to stay away from the stock market as 2 years is not long enough. As he is not overly keen with saving accounts cash isa`s etc due to low interest rates I said what about premium bonds a gamble on winning but stake is safe only loss would be inflation. When I googled investment ideas a link came up who were called specialist investment ideas with free advice. I put in my details..I received a call about half an hour later the guy recommended the above company which was based in Mayfair. he sounded very posh. He said London Capital and Finance were offering bonds paying 8% the money being lent to various companies to a maximum of 60% of their assist. He seems more of a salesman than an advisor and wants to phone back Monday. Brochure looks ok online but something does not seem right. Anyone dealt with these.

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AlanP_2 · 22 October 2015 at 6:39PM

No and nothing that I have read in your post would tempt me to deal with them.

Have you checked to see whether they are FSCS regulated?

As for you son's £25k for 2 years has he / you looked at interest paying current accounts? Should be able to get 3.5 - 5% on that amount.

JohnRo posted this link in a smiliar thread which will start you looking down that road http://www.bankaccountsavings.co.uk/

george4064 · 22 October 2015 at 6:41PM

Sounds dodgy to me.

If your son needs the money for a house deposit in 2 years he should NOT invest the money. When investing you should take a long term view, at least 5 years but usually at least 10 years.

For two years I would recommend keeping the money as cash in things such as; high interest accounts/savings accounts/NS&I savings etc.

daniel80 · 22 October 2015 at 6:53PM

I had checked and they are not FSCS regulated?

george4064 · 22 October 2015 at 6:55PM

daniel80 wrote: »

I had checked and they are not FSCS regulated?

I got this from their website disclaimer, says it all really:

The information on this site is for information purposes only and has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. London Capital and Finance offer Loan Notes for SME Lending, with fixed interest rates and asset backed for security. London Capital and Finance Limited does not offer financial advice, please contact an Independent Financial Advisor to discuss your requirements and ensure that this bond opportunity is suitable for your needs.

From their FAQs page:

Am I covered under the financial service compensation scheme?
No, this product is an unregulated investment and is not covered under the FSCS, we suggest you always seek independent advice from a regulated adviser before investing.

themanfromamarillo · 24 October 2015 at 2:23AM

In addition to the current account savings mentioned by a few people there will soon be the help to buy ISA. These will like pay ok interest rates and will be topped up with a 25% bonus for the purchase of a eligible house (<250k in most places or <400k in London, person can't have owned a house before).

kangoora · 24 October 2015 at 10:58PM

george4064 wrote: »

I got this from their website disclaimer, says it all really:

The information on this site is for information purposes only and has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. London Capital and Finance offer Loan Notes for SME Lending, with fixed interest rates and asset backed for security. London Capital and Finance Limited does not offer financial advice, please contact an Independent Financial Advisor to discuss your requirements and ensure that this bond opportunity is suitable for your needs.

From their FAQs page:

Am I covered under the financial service compensation scheme?
No, this product is an unregulated investment and is not covered under the FSCS, we suggest you always seek independent advice from a regulated adviser before investing.

Personally I would re-arrange these words 'Bargepole with touch don't a'

daniel80 · 27 October 2015 at 6:55PM

Decided to go with the help to but isa. Seems the best and safest by far.

colsten · 27 October 2015 at 7:27PM

daniel80 wrote: »

Decided to go with the help to but isa. Seems the best and safest by far.

You cannot put £25K into the HTB ISA. The max you can put it, once it becomes available, will be £1,000 + £200 as an opening deposit, and then £200 a month thereafter. It will still be worth doing once it's available, but obviously it only takes a fraction of the £25K your son has.

Interest paying current accounts, as well as high interest Regular Savings accounts are the way to go for most of the money.

daniel80 · 27 October 2015 at 10:46PM

Yes I know that colsten but he and his partner will both do it for 2 years. He wants to set up a standing order for both of them.

colsten · 27 October 2015 at 10:59PM

One person can put £6,800 into an HTB ISA over 2 years.

Two people can put £13,600 into an HTB ISA over 2 years.

A far cry from the £25,000 you said your son wants to invest now. And where's the money whilst a part of it waits to be drip-fed into the HTB ISAs?

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