Newcastle has launched a new five-year term Guaranteed Property Bond with returns linked to any growth in the Halifax house price index.
The bond’s return is based on 110% of any growth in the HHPI and has a full capital guarantee, which means provided it is maintained for its full term, the original capital invested will be returned in full, even if the HHPI falls.
The Guaranteed Property Bond has a minimum investment of £1,000 and maximum of £1m.
This Bond is also available within an ISA, or as part of a pension scheme within a self invested personal pension or a small self administrated scheme.
Steve Urwin, senior executive at Newcastle, says: “Newcastle’s guaranteed property bonds have generally appealed to those who do not wish to invest directly in physical property, yet still wish to benefit from any growth in the housing market.
“SIPP holders looking for an investment where the returns are linked to the residential property market may also find this bond a useful addition to their saving’s portfolio. The added opportunity to invest the bond in an ISA or personal pension scheme makes this new product an even more appealing prospect.”