News from Bricks

Trading Update

Published by Clive Banks, Mar 2022

Following the Russian invasion of Ukraine, increased energy costs and inflation in the headlines, you may ask, ‘what does it all mean for money invested in Bricks?’. It is a good question which we will attempt to answer.

Whilst stock markets offer the potential for high returns, they can also exhibit high volatility. Since we made our first loan in May 2015, the FTSE100 has had several daily moves of 3% or more, including one day of an 11% drop. Similarly, the S&P500 has had several daily losses of 3-4% and the largest single day drop of 12%.

In times of trouble, money tends to leave more volatile assets, such as shares, and goes to ‘safer’ assets such as high-quality bonds and gold. A Bricks loan note is like a fixed rate bond that benefits from the company taking security. With a historical loss ratio over the last seven years of just 0.15% we feel it is a relatively ‘safe’ investment.

Rising inflation tends to be bad for both shares (particularly high growth shares) and fixed rate bonds. However, although government bond prices fall as inflation rises, a Bricks loan is not affected in the same way. Because the interest we pay is so far above that of high grade corporate or government bonds, the value is not affected by relatively small movements in official rates or inflation expectations. As a comparison, the five year UK gilt yield has averaged around 0.75% pa over the last five years and is today at 1.1% pa, compared to a Bricks loan note of between 5% and 7% pa.

Consequently we see Bricks as being a relatively safe haven for cash. The FTSE100 is at the same level today as it was in May 2015, but has given investors plenty of sleepless nights. Bricks loans have returned between 5 and 7% pa, stayed at a constant value, and given peace of mind.

We hope that you find this reassuring. However if you would like to discuss this in more detail, please don’t hesitate to get in touch with us.

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Experience, standing by you

Clive Banks

founder and investor

Will Michelmore

founder and investor

Jerry Rihll

founder and investor

Tracey Abbott

head of lending

Mark Crang

lending officer

Angela Connelly-Cole

Finance Manager

What our customers say

Thank you again so much for being completely brilliant. Thank goodness there are people like you, Clive, Will, Jerry and Lyn out there."

Tracey, home finance

Bridging Finance

Personally, I found the service from Bricks 11/10 in every aspect, and I would highly recommend."

Oli, Property Developer

Devon

Property Development Loan

Thank you so much for everything you have done to help us secure this purchase. We are finally looking forward to a good night's sleep now!"

Stuart and Emma, Dream Home Purchase

Devon

Bridging Finance

This would not have been possible without your support and faith in us to deliver the project. Bricks Finance took the time to understand it. It has made an amazing difference to our lives."

Nick, Solar Energy Park

Somerset

Bridging Finance

This is our second deal and again we have achieved the first drawdown within 6 weeks from start to finish which is impressive!"

Richard, Finance Broker

Bristol

Equity Release Mortgage

Being able to purchase the site would not have been possible without the backing of Bricks."

Darren, Land Purchase

Monmouthshire

Bridging Finance

Bricks have given me the support I needed to do this. I couldn’t be happier to see it going up before my very eyes."

Russ, Beach House Development

Cornwall

Property Development Loan

Bricks have been amazing. Without them, I doubt we would have saved the pub for the village."

Becky and John, The Rose and Crown

Dorset

Refinance

When the guys from Bricks say they are going to back you they do, and it has been a real pleasure partnering with them on this project."

Matt, Property Development

Devon

Property Development Loan

I was really pleased with how quickly I had access to finance. I would recommend them to anyone looking to raise finance."

Jon, Property Development

Somerset

Property Development Loan

I’d really recommend Bricks Finance for anyone who needs to raise finance. They just allow you to get on and make things a success."

Dave and David, Property Development

Devon

Property Development Loan

I will be forever indebted to you all (thankfully no longer financially!) for taking a punt on somebody looking for a leg up in a new industry."

Alex, Forest Holiday Village Development

Cornwall

Land Finance

We found like-minded people who were prepared to take the time to understand our business and support our student accommodation in Exeter."

Angus & Alison, Landlords

Devon

Landlord Mortgage

I feel like Bricks is part of our team and wants a successful outcome for us as much as we want it."

Sam, Property Development

Devon

Property Development Loan

Having used Bricks myself, I now feel comfortable referring clients who have similar needs. The beauty of Bricks is their speed, flexibility and being FCA regulated so they can provide regulated and unregulated loans."

Geoff, Finance Broker

Somerset

Property Development Loan

Bricks are so easy to deal with; they get involved and take an interest in the project all the way to completion."

David, Finance Broker

Cornwall

Bridging Finance

Contact us

Speak to us directly

We'd love to hear from you. Whatever your enquiry give us a ring or send us an email and we'll respond as soon as possible.

Bricks Finance Ltd
Winslade Park
Manor Drive
Exeter, EX5 1FY
United Kingdom

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