Great British Business Account Series 2 (GBBA2) & Property Secured Account (PSA) closure FAQs
Why have you closed the GBBA2 & PSA accounts to new investment?
We’ve closed these accounts to new investment to simplify the platform and create the best possible lending experience.
Our Credit Policy is now that all loans must have property security. As such there is no longer a need for a differentiated Property Secured Account (PSA).
As we’ve grown our platform, we’ve listened to your feedback and monitored which accounts you’re investing through. With the ever-growing popularity of the ‘Access Accounts,’ including the introduction of our 90 Day Account back in March this year, the growth of the GBBA2 and PSA has remained relatively static.
What does this mean for my current holdings in these closed accounts?
You can still hold them for the full term of the loan, however, any capital repayments or interest you receive from investments in the closed accounts will be transferred into your Cash Account or a chosen investment account (QAA/30DAA/90DAA or MLA)
Are my returns affected by the closures?
If you have loan holdings in these accounts, they will continue to seek to pay the target rate of gross interest (subject to individual loan performance and the provision fund).
Can I still sell my holdings?
If you do wish to sell some or all of your loan holdings in any of the closed accounts, you are still able to do this through the secondary market (provided the loans are not suspended and subject to demand by other lenders) by selecting the ‘withdraw’ option in your dashboard.
Do I have to sell my holdings?
No. If you have loan holdings in these accounts, they will continue to seek to pay the target rate of gross interest (subject to individual loan performance and the provision fund). Over time, any interest received, and capital repaid from your investments in GBBA2 & PSA will be returned to your Cash Account for investment in other accounts at your discretion. In due course after all loan repayments or recoveries you will eventually have no holdings remaining in these two accounts.
Can I reinvest the interest earned and capital repaid in the GBBA2 & PSA back into the same accounts?
No, as the accounts are now closed to new investment all interest received and capital repaid will be transferred out of your GBBA2 & PSA Accounts, as described above.
What happens if I send a bank transfer using the GBBA2 or PSA reference?
This money will be credited to your Cash Account where it may not be interest bearing. You will then need to manually move it to one of the available accounts for it to become invested and earn interest. To avoid this, we recommend you update/delete any standing order or saved bank details you have to ensure you do not use inactive references.
Will the provision fund balance change as a result of an account closure?
The provision fund balance for this account will remain at the published level as at September 30th, 2019, less any use of the balance for provision fund payments to investors in the account.
- November 13, 2019