Some of the factors you should consider before investing in Loanstock are:

• The first consideration relates to the timescale involved. Loanstock is usually a two to five year arrangement and any money invested will not normally be available before the end of the term; except in cases of financial hardship or the death of an investor. You must be sure, therefore, that you will not need any monies invested until the maturity date.

• The top rate of interest payable is 5% p.a., although this is not significantly below current high street deposit rates, it can become un-competitive over time. If you desire a higher rate of return, this type of investment is not for you.
  

• Loanstock issues are a rare investment opportunity; as they are not solely meeting a selfish savings and investments motivation. At the highest level, they pay a fair rate of return (other investments may pay much higher rates), but you can direct your investment into projects which assist people less fortunate than yourself.

• At the lowest level of 0% p.a., your investment can only be considered as being purely altruistic.

If you have any concerns relating to an investment in Loanstock, you should seek guidance from your financial adviser.