Frequently Asked Questions
Who is Hamilton and Mason?
Hamilton and Mason is seeking to help support UK businesses with the provision of credit while at the same time providing investors with an attractive return on their investment. Companies borrowing capital must provide adequate security and undergo a strict due diligence process. Profits from the lending fees and interest on the loans are used to pay investors their fixed return.
What is the Hamilton and Mason property bond?
The Hamilton and Mason Property Bond, offers investors the opportunity to invest directly into property backed loans made by Hamilton & Mason. Subscribed funds are lent to property developers whose loans are secured against residential property. In return, investors receive a competitive fixed rate of up to 16.8% per annum gross, paid quarterly or at maturity.
Where is capital invested?
The Hamilton and Mason Property Bond is a retail bond which is invested exclusively in Hamilton and Mason’s asset-backed lending business. The funds you allocate to the Property bond are lent to UK property developers – both small businesses and individuals – and those loans are secured against tangible assets consisting mainly of UK residential property.
How does Hamilton and Mason make its money?
Hamilton and Mason charges borrowers an upfront arrangement fee of up to 16.8%, borrowers are required to pay an annual interest rate on their loan. The annual rate charge may vary according to circumstances. Hamilton and Mason does not charge investors a fee to invest.
Are there any fees, charges or deductions?
Hamilton and Mason will take zero fees or deductions from clients throughout the period of their investment. All interest paid by the bond will go directly to the client.
Are the bonds regulated by the FCA?
The bonds offered herein are structured as corporate loans to Hamilton and Mason Group and are therefore not regulated by the FCA.
What security does Hamilton and Mason provide?
When funds are lent out, a charge over either property and/or other assets of the borrowing company is taken at no more than 70% loan to value. For example, with a loan of £700,000, the value of the charged assets of the borrowing company would need to be at least £1 million. As an investor you would have a charge over the assets by way of a vehicle known as a debenture. This means that all investors will have a charge over the secured assets, which include the cash reserves in Hamilton and Mason and the security taken from borrowing companies.
Can I access my money early?
No, these are long term investments and you would be very unlikely to get your money back early.
However, Bondholders may submit a written request providing the reason for the request to Hamilton and Mason Group, and all such requests can only be made after the first anniversary of the bond. As advised in the terms, the Company will be under no obligation to accept your request for early redemption and therefore you should only invest in Hamilton & Mason Property Mini-Bonds if you are prepared to invest your money for the full initial fixed term. Should your request be approved no interest will be paid for the invested term, and any interest that has already been paid will be deducted from your capital.