Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Palken
    • By Palken 18th Sep 16, 4:54 PM
    • 11Posts
    • 1Thanks
    Palken
    Westway Holdings
    • #1
    • 18th Sep 16, 4:54 PM
    Westway Holdings 18th Sep 16 at 4:54 PM
    Hi


    I recently saw an advert for Westway Holdings Bonds that pay 6.25% over two years. Protection of the investment seem to be similar to that of pension funds. I would be grateful if anyone could advice as to what risks are involved.


    I look forward to your thoughts.


    Regards Ken.
Page 1
    • bigadaj
    • By bigadaj 18th Sep 16, 5:10 PM
    • 10,318 Posts
    • 6,613 Thanks
    bigadaj
    • #2
    • 18th Sep 16, 5:10 PM
    • #2
    • 18th Sep 16, 5:10 PM
    We keep on seeing posts like these.

    It has similar protection to a pension if that pension is a sipp, decides to hold all its investment in a single unlisted private company, which was incorporated one year ago.

    No capital protection if teh comoany folds, which is a distinct possibility, your choice.

    This assumes the post isn't spam of course.
    • ColdIron
    • By ColdIron 18th Sep 16, 5:19 PM
    • 3,453 Posts
    • 4,059 Thanks
    ColdIron
    • #3
    • 18th Sep 16, 5:19 PM
    • #3
    • 18th Sep 16, 5:19 PM
    This is not a savings account and your capital is at risk, you have no protection under the FSCS. Westway Holdings Limited was incorporated 03 Sep 2015
    • DrSyn
    • By DrSyn 18th Sep 16, 6:05 PM
    • 421 Posts
    • 196 Thanks
    DrSyn
    • #4
    • 18th Sep 16, 6:05 PM
    • #4
    • 18th Sep 16, 6:05 PM
    With Bank rate at 0.25%

    Best 2 year fixed rate account paying about 2.2%.

    If someone honest is paying 6.25%, that alone would suggest to me there must be a risk to your money. This is not a savings account.

    A bond is only as good as they company backing it.

    For this bond offer, read the small print at the bottom of their website.

    As others have said this company is only a year old. Look it up for yourself:-

    https://beta.companieshouse.gov.uk/company/09761309


    If you do not want to hold a FTSE 100 ETF because of the risk, would you be willing to invest in a bond from a 1 year old company?
    Last edited by DrSyn; 18-09-2016 at 6:19 PM.
    • cisamcgu
    • By cisamcgu 19th Sep 16, 9:34 AM
    • 64 Posts
    • 37 Thanks
    cisamcgu
    • #5
    • 19th Sep 16, 9:34 AM
    • #5
    • 19th Sep 16, 9:34 AM
    From their website :
    Investors in the Bonds should note that they will not have the benefit of the Financial Services Compensation Scheme in the event of insolvency of the Company. Investment in Bonds carries substantial risk. Your capital is at risk if the Bond issuer becomes insolvent. Bonds are non-transferable and cannot be redeemed by investors prior to maturity. Prospective investors should consider carefully whether an investment in the Bonds is appropriate for them
    • dunstonh
    • By dunstonh 19th Sep 16, 9:58 AM
    • 89,852 Posts
    • 55,454 Thanks
    dunstonh
    • #6
    • 19th Sep 16, 9:58 AM
    • #6
    • 19th Sep 16, 9:58 AM
    Protection of the investment seem to be similar to that of pension funds.
    Pension funds have 100% FSCS protection with no upper limit.

    This bond has no FSCS protection at all. It is at risk of 100% capital loss. Where did you get the impression it had similar protection?
    • Palken
    • By Palken 19th Sep 16, 4:59 PM
    • 11 Posts
    • 1 Thanks
    Palken
    • #7
    • 19th Sep 16, 4:59 PM
    • #7
    • 19th Sep 16, 4:59 PM
    Thanks for all your kind advice. It did seem to good to be true.


    Best regards Ken
    • jimjames
    • By jimjames 19th Sep 16, 7:54 PM
    • 12,091 Posts
    • 10,539 Thanks
    jimjames
    • #8
    • 19th Sep 16, 7:54 PM
    • #8
    • 19th Sep 16, 7:54 PM
    Thanks for all your kind advice. It did seem to good to be true.


    Best regards Ken
    Originally posted by Palken
    It would still be useful to know the answer to the question in post #6 to give an idea what people are seeing in these things
    This bond has no FSCS protection at all. It is at risk of 100% capital loss. Where did you get the impression it had similar protection?
    Originally posted by dunstonh
    Remember the saying: if it looks too good to be true it almost certainly is.
    • fairguy
    • By fairguy 27th Jul 17, 5:31 PM
    • 3 Posts
    • 0 Thanks
    fairguy
    • #9
    • 27th Jul 17, 5:31 PM
    • #9
    • 27th Jul 17, 5:31 PM
    Of course it has no FSCA protection! It is an at risk bond, that's why the interest rate is so high! If you want a no risk investment take out an ISA or a fixed bond under full FSCA protection. Though you will be protected you will actually be paying the bank or whichever finance company, not the other way round! Inflation is at 2.4%, which means the best paid ISA or FSCA protected bond will pay out a lot less than 2.4% interest! Wake up people!
    Last edited by fairguy; 27-07-2017 at 5:32 PM. Reason: grammar
    • badger09
    • By badger09 27th Jul 17, 5:43 PM
    • 5,172 Posts
    • 4,368 Thanks
    badger09
    Of course it has no FSCA FSCS protection! It is an at risk bond, that's why the interest rate is so high! If you want a no risk investment take out an ISA or a fixed bond under full FSCA FSCS protection. Though you will be protected you will actually be paying the bank or whichever finance company, not the other way round! Inflation is at 2.4%, which means the best paid ISA or FSCA FSCS protected bond will pay out a lot less than 2.4% interest! Wake up people!
    Originally posted by fairguy
    If you're going to revive a thread which has been dormant for 10 months, could you at least please get the scheme acronym right?
    • eskbanker
    • By eskbanker 27th Jul 17, 6:05 PM
    • 5,580 Posts
    • 5,423 Thanks
    eskbanker
    That poster also resuscitated an ancient London Capital & Finance thread, using the words "I am thinking of investing in London Capital & Finance", which tells you all you need to know!
    • ColdIron
    • By ColdIron 27th Jul 17, 6:24 PM
    • 3,453 Posts
    • 4,059 Thanks
    ColdIron
    But we can be reassured that these unregulated products are 'monitored' by the statutory UK compensation scheme
    • dunstonh
    • By dunstonh 27th Jul 17, 6:25 PM
    • 89,852 Posts
    • 55,454 Thanks
    dunstonh
    Of course it has no FSCA protection! It is an at risk bond, that's why the interest rate is so high! If you want a no risk investment take out an ISA or a fixed bond under full FSCA protection. Though you will be protected you will actually be paying the bank or whichever finance company, not the other way round! Inflation is at 2.4%, which means the best paid ISA or FSCA protected bond will pay out a lot less than 2.4% interest! Wake up people!
    Originally posted by fairguy
    So, you are comparing nil risk deposits with 100% loss potential high-risk unregulated investments and think it is everyone else has to wake up?

    Last edited by fairguy; Today at 5:32 PM. Reason: grammar
    It isn't just your grammar you need to work on.

    Anyone who is reading this thread, please disregard posters like this. They are dangerous and can cause people to make bad decisions. They do not know what they are doing and they should not be encouraging others to make the same mistake.
    • Indiatea
    • By Indiatea 5th Oct 17, 1:54 PM
    • 1 Posts
    • 0 Thanks
    Indiatea
    FSCS scheme is fair. But only cover investments up to £50,000 even if its a through a Bank. Up to £85,000 on deposits. And check out the FSCS website, like all insurances...it isn't blanket cover ( the Banks want you to think it is....but they would wouldn't they?!!). Westway offer 'first and only' legal charge on their whole property portfolio in favour of the investor. A quick call to the FCA regulated Security Trustee will confirm that. Or check the land registry entry. So in this scenario you are in the same position as the Bank that loaned you the money for your house. Nothing is risk free. Not everything is 'too good to be true'. Non regulated investments are a mixed bag. Good, bad and ugly.

    If you are prepared to put some effort in, and are confident of what you are doing, there are products in the 8%+ range that will not scare the horses !
    • dunstonh
    • By dunstonh 5th Oct 17, 2:07 PM
    • 89,852 Posts
    • 55,454 Thanks
    dunstonh
    FSCS scheme is fair. But only cover investments up to £50,000 even if its a through a Bank.
    If its investments then a bank has nothing to do with it. Banks own insurance companies and investment companies and just because their group logo may appear on the headed paper, does not mean the business you are dealing with is a bank.

    And check out the FSCS website, like all insurances...it isn't blanket cover
    Actually, for insurance and insured pension funds (such as stakeholder pensions or internal funds on personal pensions), the FSCS protection is blanket cover. 100% with no upper limit.

    ( the Banks want you to think it is....but they would wouldn't they?!!)
    The banks dont have an opinion on this.
    Nothing is risk free. Not everything is 'too good to be true'. Non regulated investments are a mixed bag. Good, bad and ugly.
    Unregulated investments are higher risk and not meant to be retailed to consumers in the same way retail investments are. If you look at the single biggest area of concern resulting in consumer loses, it is unregulated investments going tits up.

    If you are prepared to put some effort in, and are confident of what you are doing, there are products in the 8%+ range that will not scare the horses !
    Plenty of regulated investments have been returning in excess of 8%. However, they have been doing so with less risk than unregulated investments pretending to be fixed term deposits.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,388Posts Today

7,799Users online

Martin's Twitter
  • I was surprised to see the three people in front of me in the newsagents were all shocked their old £1 coins were no longer taken.

  • RT @natdebtline: If you?ve been visited by a bailiff since April 2014 we want to hear your story for our #bailiffreform campaign https://t.?

  • Well so far it seems there's one thing remainers and leavers agree on - the EU is getting the better of the negotia? https://t.co/70z5ffpG8S

  • Follow Martin