Bond FAQs

  1. There are no set up fees or on-going management fees.
  2. You are assigned a dedicated Account Manager upon application.
  3. Choose between fixed terms of 3 or 5 years. Capital at Risk.
  4. Not covered by FSCS.
  5. Investors are due to recieve fixed-rate returns for the term of the investment.
  6. Investors enjoy rates of 7.9% or 9.9% p.a.
  7. The risk of loss is mitigated by multi-layered insurance scheme in the event of insolvency, this does not guarantee a return and the limitations of this are listed under ‘Is my capital protected'.
  8. Investor interest is paid directly into your bank account.
  9. 20% tax deducted from interest as per HMRC requirement.
3 year bond
7.9%
Capital at Risk
5 year bond
9.9%
Capital at Risk

Interest is paid quarterly, directly in to your bank account.

Use our interest calculator below to project your potential returns.

The interest rates offered are fixed as per the terms of the bond to 7.9% and 9.9% for this series of bond issue. However, a return on the bond is not guaranteed.

Blackmore reserve the right to adjust the interest rates offered in future bond issues.

The likelihood is that the interest rates of future bond issues will be lower than the rates currently on offer.

Capital is at risk.
Interest will be paid every three months on the following days: 31 January, 30 April, 31 July and 31 October (or the next working day on which United Kingdom clearing banks are open for business).

If you are still within your cooling off period when an interest payment is due, you will not receive this until the next quarter.
It is an HMRC requirement that Blackmore deduct withholding tax which is 20% of the Gross interest amount. On behalf of bondholders, Blackmore transmit this payment to HMRC.

As an example, if an interest payment of £100 is due, then £80 will be paid to the investor and £20 will be payable to HMRC, by Blackmore, on behalf of the investor.

Blackmore does not have to deduct tax from interest if it reasonably believes the recipient is a company liable to corporation tax on the amount received, a local authority, or body exempt from tax such as a charity or pension fund.

For your information, please find below two documents which provide further explanation of the withholding tax.

Document 1:
A legal opinion from Michael Collins, barrister who resides at Temple Tax Chambers. The opinion confirms that it is an HMRC requirement for withholding tax of 20% to be applied;
Download

Document 2:
A statement from A K E Tax & Accountancy Ltd, Chartered Certified Accountants & Registered Auditors. The statement provides additional detail regarding the requirements.
Download

Blackmore cannot provide investors with tax advice and you are therefore advised to contact your tax adviser so that appropriate arrangements can be made prior to you investing in bonds.
We have a multi-layered risk mitigation scheme in place to assist with our Investors' protection. We aim to protect your capital in the following ways:
  1. Investors have a legal charge over the assets of Blackmore Bond. In the event of business insolvency then the sale of these assets goes towards paying back our Bondholders' capital. Please note that where there is bank borrowing, the Bondholders will rank second in order of priority over the charge.
  2. Should the sale of these assets not be enough to pay our Investors back in full then a claim is made under our Capital Protection Scheme to cover Investors for any shortfall there may be, to repay up to their capital in full.
  3. An independent Security Trustee – International Administration Group – will monitor and control the security, acting in the interests of Bondholders and not for the Company.
Please note that as with any investment your capital is at risk and the risk mitigation scheme does not guarantee a return of capital and interest. The key limitations to this policy are as follows:
  1. The legal charge over the assets of Blackmore Bond may be insufficient to cover repayments to bond holders. Even though an independent Security Trustee this will not guarantee a return
  2. The Capital Protection Scheme has the following limitations:
    • Should Blackmore fail to pay premiums this would result in the policy falling away.
    • Should Blackmore fail to make notification to the insurer in a timely manner this may cause the policy to be invalidated.
    • The ultimate underwriter may become insolvent at the time of or before a claim meaning that they would not be able to pay out on the policy.
Put simply, no. It will not be possible to access your capital before the end of the investment term, so you must be very certain that you will not require your money until the term expires. The only exception to this is in the event of the death of a bondholder where the Company may agree to a redemption or transfer.
You can invest more capital in the bonds if you choose to, either at the same term or a different one. This will not be by way of a top up of the existing investment, and it will be necessary to place an additional investment. Please note the minimum investment each time will be £5,000.

If you wish to invest more capital, please give us a call on 0800 131 0100 and we will be happy to help.
Blackmore do not change any fees for investing in the bonds.

In addition, there are no ongoing management fees.
To invest you must read the Information Memorandum and complete the full online application.

Start Application

Investment is not suitable for all, eligibility is checked during the application process.
You have the right to cancel your investment account within 14 days after Northern Provident receive funds, or in the case of a transfer when Northern Provident receive your completed application.

You will receive an email from Blackmore to confirm that you have had your ISA application accepted. After this, you generally cannot get your investment back until the end of the term (see Can I get access to my money early?).

To cancel within the first 14 days, please email, telephone or write to Blackmore.