Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2mins to learn more.

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

You could lose the money you invest

Many peer-to-peer (P2P) loans are made to borrowers who can’t borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying you back.
Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.

You are unlikely to get your money back quickly

Some P2P loans last for several years. You should be prepared to wait for your money to be returned even if the borrower repays on time.
Some platforms may give you the opportunity to sell your investment early through a ‘secondary market’, but there is no guarantee you will be able to find someone willing to buy.
Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take longer to get your money back.

Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

The P2P platform could fail

If the platform fails, it may be impossible for you to collect money on your loan. It could take years to get your money back, or you may not get it back at all. Even if the platform has plans in place to prevent this, they may not work in a disorderly failure.

You are unlikely to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in P2P loans. You may be able to claim if you received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA’s website here.

Lend against luxury assets

Earn up to 10.2% pa

Invest in short term loans (typically 6 months) and earn 0.85% per month (IFISA eligible).

Proven track record

Successfuly operating since 2015, with established valuation and disposal capabilities.

Assets held in possession

Loans are secured by luxury assets held in Unbolted's possession.

Remember that your capital is at risk with no FSCS protection. Past performance is not a guarantee of future returns and we cannot guarantee that security on the loan will cover full capital and interest.

Open a classic account Open an IFISA account

Unbolted - lend against luxury assets

Secured loans - earn 10.2% pa

Unbolted is a peer-to-peer lending platform with a difference - lower risk, with loans secured by pawned assets held in possession. The traditional pawnbroking model reimagined.

Loans are made for short terms against luxury assets, which are conservatively valued and carefully underwritten. LTVs range from 40% (on wine) to 80% (on gold), depending on underlying asset liquidity and ability to hedge price volatility.

All loans earn 0.85% per month in interest, paid semi-annually.

See Loan Performance

Auto Lend

Unbolted’s Autolend is our solution for easy investment and risk diversification for the time constrained lender. Most of our loans on the platform are fully distributed through automatic lending instructions.

Sale Advance Loans

In partnership with auction houses, Unbolted advances 40% to 50% of the low auction estimate of an asset consigned for sale with an auction house.

What if Unbolted were to go out of business?

Our business is robust, but we have made arrangements for your loans to be serviced in the unlikely event that Unbolted ceases to trade. A third-party back-up servicer would take our place in servicing the existing loans.

The appointed back-up servicer is Resolution Compliance Ltd ("RCL"), which is authorised by the FCA to operate an electronic platform in relation to lending under firm reference number 574048.
While RCL is not authorised to hold client money itself, it is allowed to control client money if required. In the event that Unbolted ceases to trade, your funds will continue to be held in the segregated client money account held in our name but RCL will act as the administrator of the client account. It will receive any payments due from the borrowers into and make any payments to lenders from the existing client account.
RCL is authorised by the HMRC as an ISA Manager and would be able to take over the administration of the Unbolted ISA accounts. This means loans held within an Unbolted ISA account will keep their tax-free benefits.
RCL will continue to service and monitor the loans. It will:

procure payment of the debts due under the loan agreements;
enforce the rights under the loan agreements on behalf of the lenders;
receive payments in respect of interest and capital due from borrowers; and
make payments in respect of interest and capital due to lenders.

RCL will charge a quarterly fee for providing its services. This fee will not exceed any ongoing income receivable by us and RCL will not charge any additional fees.

Please also note that while a back-up servicer has a contractual obligation to service the loans, there will be some residual risks in the event of the insolvency of a platform.

the majority of balances due to lenders are those due from borrowers rather than from the platform operator itself. The lenders will not have any entitlement to any balances not yet received from borrowers; and
the back-up servicer will not have the same incentives as the platform operator in managing the performance of the loans. As such in an insolvency or wind-down scenario, redemption of assets or recovery on defaults may be negatively impacted resulting in lower realisation of balances due.

Risk warning: No recourse to FSCS

Remember that with peer-to-peer lending, your capital is at risk. Peer-to-peer lending platforms are not covered by the Financial Services Compensation Scheme (FSCS).