4.75% interest with 69% LTV

hipkiss95

I am currently looking at my first investment opportunity and would appreciate the opinion of those with more experience and understanding than I.
The investment is for 1 year, with a minimum input of £100 and a fixed rate interest of 4.75%. I am only intending to invest £2000 as I am a recent graduate and do not have a huge amount of savings (I understand that neither the return of my original investment or interest are not guaranteed).
As a new user I cannot attach a direct link, more information can be found however at downingcrowd.co.uk/invest/224

Any thoughts/opinions are appreciated, thanks!

redux

In your circumstances and for that amount I'd suggest a Nationwide Flex Direct bank account, and maybe one of their monthly savers alongside. Both 5% at the moment. Also other bank accounts pay interest; some rates have dropped, but still 2 and 3% available, TSB, Tesco etc.

markwilkinson

redux wrote: »

In your circumstances and for that amount I'd suggest a Nationwide Flex Direct bank account, and maybe one of their monthly savers alongside. Both 5% at the moment. Also other bank accounts pay interest; some rates have dropped, but still 2 and 3% available, TSB, Tesco etc.

This is an absolute no brainer OP. Why risk your £2k for 4.75% when can get 5% with protection? The Flex Direct will pay 5% on balances up to £2.5k so you have a bit of room to add more when/if circumstances allow.

Thrugelmir

Any reason for providing a link? Promotional activity perhaps.

hipkiss95

redux wrote: »

In your circumstances and for that amount I'd suggest a Nationwide Flex Direct bank account, and maybe one of their monthly savers alongside. Both 5% at the moment. Also other bank accounts pay interest; some rates have dropped, but still 2 and 3% available, TSB, Tesco etc.

Thanks for your advice!

System

Rather than a shady unknown bond where you're 100% in one company, why not try a diverse bond fund through a stocks and shares isa, or better still (in my opinion) a mix of equities too

System

4.75% isn't very compelling in the investment world

redux

MatthewAinsworth wrote: »

... why not try a diverse bond fund through a stocks and shares isa, or better still (in my opinion) a mix of equities too

Stuff like that can come later on.

Meanwhile, as per the OP being at the start of a career ( and do not have a huge amount of savings), I stick with my advice in post 2, build up some cash to start with.

Pincher

Let's see, I have sold ten thousand installations of solar panels in Eastern England, pretending that I will support them for the next twenty five years. Half of them are not working properly, but the Feed In Tariffs are registered in my name. I make up a valuation, saying the FITs are worth £4million pounds, neglecting to estimate the long term support costs.

I now sell the right to the FIT payments for £2.7million.

Once I get the £2.7million, I run away with the money.

The idiots who bought the bonds are welcome to administer and collect the FIT themselves. And handle the screams of householders with leaking roofs and electrical problems.

The insolvency firm appointed soon realise there is no value left in the scheme, only liabilities, and order a winding up, with nobody getting any money back.

I am sipping cocktails in the Bahamas, in the mean time.

Buy a property in Cuba? No extradition, I assume.

Mortgagefreeman

https://beta.companieshouse.gov.uk/officers/-AEhz-U80sc6T5j1rqkitIG89cU/appointments

Now ask yourself, do you feel lucky? Do you?