What are the fees for the Fixed Rate product?

Landbay does not charge any fees for standard investments. However, there is a 0.20% charge to customers who wish to withdraw from the Fixed Rate product before the end of the loan term. In addition, if interest rates increase, we may introduce an additional variable charge to Landbay Investors selling a Fixed Rate Investment Product. This additional charge would be based on the difference between the rate you invested at, and the rate you could achieve by investing in an equivalent Investment Product at current rates. This provides Landbay Investors with the liquidity to sell their investments in a higher rate environment, but without making gains that were not part of the original Fixed Rate Investment.

Please note that withdrawal charges are only applicable to investments in the Landbay Fixed Rate Product made after 10th December 2016

Example 1*

  • January 2015: Original 3 Year Fixed Rate Product Investment: £10,000 @ 4.50%
  • December 2016: Landbay Fixed Price Product Rate increased by 0.30% to 4.80%
  • January 2017: Investor Sells Fixed Price Product

Charges:

  • Investor has held the three year product for two years and has one year left
  • Current fixed rate has increased by 0.30%
  • Landbay standard 0.20% fee is applicable as rates have increased
  • Landbay ‘investment gap’ fee of 0.30% for the one year left on the product is applicable
  • Landbay only charges the greater of the two fees
  • Total charges: 0.30% * £10,000 * 1 year = £30.00

 

Example 2*

  • January 2016: Original 3 Year Fixed Rate Product Investment: £10,000 @ 4.50%
  • December 2016: Landbay Fixed Price Product Rate decreased by 0.10% to 4.40%
  • January 2017: Investor Sells Fixed Price Product

Charges:

  • Investor has held the three year product for one year and has two years left
  • Current fixed rate has decreased by 0.10%
  • Landbay will not charge investor any fees
  • Total charges: £0.00

 

Example 3*

  • July 2016: Original Fixed Price Product Investment: £10,000 @ 4.40%
  • November 2016: Landbay Fixed Price Product Rate increased by 0.20% to 4.60%
  • January 2017: Investor Sells Fixed Price Product

Charges:

  • Investor has held the three year product for six months and has two years and six months left
  • Current fixed rate has increased by 0.20%
  • Landbay standard 0.20% fee is applicable as rates have increased
  • Landbay ‘investment gap’ fee of 0.20% for the two years and six months left on the product is applicable
  • Landbay only charges the greater of the two fees
  • Total charges: 0.20% * £10.000 * 2.5 Years = £50.00

 

Example 4*

  • January 2015: Original 3 Year Fixed Rate Product Investment: £10,000 @ 4.50%
  • December 2016: Landbay Fixed Price Product Rate Increased by 0.15% to 4.65%
  • January 2017: Investor Sells Fixed Price Product

Charges:

  • Investor has held the three year product for two years and has one year left
  • Current fixed rate has increased by 0.15%
  • Landbay standard 0.20% fee is applicable as rates have increased
  • Landbay ‘investment gap’ fee of 0.15% for the one year left on the product is applicable
  • Landbay only charges the greater of the two fees
  • Total charges: 0.20% * £10.000 * 1 year = £20.00

 

*Please note that these examples are purely indicative, and no future rates are confirmed.

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