The 4thWay PLUS Ratings are based on interest rates and a forecast of the risk of borrowers not repaying their entire debts. There are other risks. A top 3/3 4thWay PLUS Rating means that, using the international banking standard “Basel” method, we expect that the average investor won’t make a loss across a basket of equally-rated… Read more
The 4thWay Risk Scores are an estimate of the potential losses in a severe recession, with lower scores being better. They don’t take interest rates or reserve funds into account and instead focus entirely on the scale of written-off loans. There are other risks to P2P lending and P2P IFISA lending, which are not taken into… Read more
A bridging loan is a short-term property loan that is meant to bridge a period of time. For example, when a property development project has been completely built, you might need a bridging loan to cover the period of time it takes to complete a sale. Read more about bridging loans.
A brownfield site is land that was previously developed. It could potentially be redeveloped. Read more about brownfield sites in peer-to-peer lending.
4thWay’s detailed comparison pages contain around 100 pieces of information on each lending account that we have assessed. The detailed comparison pages can be found like this: 1. Go to the combined peer-to-peer lending account and IFISA comparison table or just the IFISA comparison table. 2. Check the boxes on the right of all the accounts that… Read more
A development loan a loan to develop a building site. This might include tearing down existing premises, completing groundworks and putting up a new building. Or it might be renovating an existing building. Usage of the phrase “development loan” varies. Read more about development loans.
A first charge means that, if the borrower is unable to pay its bills, you will be first in line to get your money back, including interest, when specified property or items are sold to recover losses. Other lenders (e.g. banks) are later in the queue than you, and they might only get any of their money… Read more
The amount of new money you can put into an ISA each tax year (from 6th April to 5th April the following year) is capped. With a flexible ISA, if you put new money in, you can withdraw it and put it back in again without losing part of your capped allowance, provided you put… Read more
A loan that is junior to other loans means that those other loans will be repaid first in the event that the borrower is unable to repay all debts.
If a property is valued at £100,000 and the borrower borrows £70,000 then this is 70% loan-to-value (or 70% LTV). It means that lenders have an estimated buffer of 30% if the property needs to be sold to recover the debt, which is particularly useful if the property market falls. Read more about loan-to-value.