Portfolio review: Bricks has made ten loans since its start, almost 18 months ago, totalling just over £2 million. Two of the ten loans (total £190,000) have already been repaid in full, whilst another two (total £600,000) are due for repayment by the end of June.
We now have 11 funding partners making our lending possible. We are currently offering 6%p.a. for two or three-year funds and have three new funding partners interested in joining that would take our total funding available to over £3 million.
Financial Conduct Authority Authorisation: We have completed the regulatory and compliance work required and made an application to the Financial Conduct Authority to be authorised for certain lines of lending. This is an important step in our development and will allow us to participate in opportunities that are common in the South West, such as bridging loans for home movers.
Trusts and Estates: We have made two loans to the executors of deceased estates. These loans are required when probate is drawn out and there is no liquidity in the estate to pay for essential estate maintenance and/or IHT. I would like to highlight that these loans are not secured, in the same way as the rest of the portfolio, and we have amended our risk disclosures accordingly. We still feel that they offer a very good risk return as the legal borrowers are the executors (normally professionals being lawyers or accountants) who are highly unlikely not to use the estate’s assets to settle the loans. We are targeting more of this business by working with the Society of Estate & Trust Practitioners (STEP).