Yes. Every loan on the easyMoney platform is secured with a legal charge on a property, which helps protect your money.
A charge over property does not guarantee loan repayments. It means the borrower cannot sell the property without paying the loan.
In most instances this will be a first charge, however sometimes it may be a second charge. We will only accept a second charge if the first charge is relatively low and the combined total of both charges does not exceed 75% of the value of the property.
Good to know
Legal charges are designed to protect Investors money. A charge is a legal document that is signed by the borrower and registered against the property with the Land Registry.
A first charge means that nothing can happen to the property (it can’t be sold, transferred or inherited) without easyMoney, and you as the investor, being paid first.
A second charge has fewer rights to the property and means easyMoney and you as the investor, are second in line to be paid if we ever needed to go through the process of selling the property to recover our funds.
As we take a charge against a property for each of the loans that we administer, and as you would always be paid first from the proceeds of any property sales, easyMoney don’t operate a provision or contingency fund.