Housemartin’s strategy is to maintain and grow our platform but we are required, by the FCA, to have a plan in place in the unlikely event circumstances dictate that the platform should be wound down. This plan has been written to ensure that investments on the platform are not impacted and investors interests are preserved.
Housemartin takes a monthly loan monitoring fee from each of the loans on the platform, which currently covers the majority of our overheads. In the event of a platform wind-down our overheads would reduce dramatically. Property sourcing, marketing and platform development would cease, reducing staff and marketing costs to a level where monthly income would comfortably cover overheads during this period.
Platform operation and interest payments to investors would be unaffected from an investors point of view during this period. The only visible difference would be no new property launches or platform feature enhancements.
During the wind-down period we would explore two options to achieve the optimum outcome for investors:-
- Transfer of the entire loan book to another business (who may or may not operate a peer-to-peer platform).
We would only consider this route if we were confident the acquiring business has the necessary experience and expertise to run the platform and that the business aims were aligned with our investors interests and would protect the people we currently house. Under this scenario Housemartin’s role as loan servicing agent would be assigned to the new business and the Property companies (that own each property) would still be bound by the terms of the existing loan agreements.
- The sale of the properties on the platform to allow the repayment of loans to Lenders.
We would look to sell the properties with their leases in place which we believe would be of great interest to a variety of potential investors either on a piecemeal basis or as a collection of properties.
Both of the above options would ensure continuity of care for the vulnerable people we are housing.
All money in Housemartin investor cash accounts is kept in a ring-fenced, audited RBS client money account in accordance with Financial Conduct Authority (FCA) rules and would be returned to investors on request.
If you have questions or concerns email support@housemartin.co or arrange a call back to discuss with member of the Housemartin team.