The Fixed Rate Product interest rate stands at 3.55% annualised, based on the reinvestment of interest every month (3.49% pa, correct as at August 2018) and will remain at this rate for up to 3 years, at which point it will automatically revert to the Tracker Rate. Redeeming your Fixed Rate loan parts may be possible prior to completion of the 3‐year fixed term, subject to Landbay being able to reallocate your loan parts to new investors. Fixed Rate loan parts will be redeemed at the current market rate, which may be higher or lower depending on how rates move in the future. We recommend this product for investors who want a fixed, stable monthly income and are unlikely to want to access their capital prior to the end of the Fixed Rate term.
The Tracker Rate Product has an interest rate of 2.50% + London Interbank Offered Rate (LIBOR). For example, the interest rate when LIBOR is 0.64% would be 3.14% per annum; or 3.19% annualised. Due to the floating nature of this product you can redeem your loan parts at any time and at no cost, subject to Landbay being able to reallocate your loan parts to new investors. We typically only require a few days’ notice to facilitate Tracker Rate redemptions and therefore recommend this Product to investors who want greater flexibility with their capital.
The Landbay Reserve Fund covers both the Fixed and Tracker Rate Products.
Investment in any Landbay Product is subject to loan parts being available.