Everything you need to know about Fortress Bonds, and how to apply

Fortress Bonds are fixed rate bonds available for terms of 1, 2 and 3 years. All interest can be paid to you either quarterly or at maturity.

1 year bond 2.25% AER*

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2 year bond 2.50% AER*

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3 year bond 2.75% AER*

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The deadline for applications for current issues: Friday 28th September 2018 2 PM

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. This assumes that you invest on the first day of the Offer Period and receive your cashflows as per the contractual terms.

Frequently Asked Questions

What is a Fortress Bond?

Fortress Bonds are fixed rate bonds which pay interest to investors in a lump sum, either quarterly or at maturity (depending on which bond you select) and return the original amount invested at the end of the term. When you buy a Fortress Bond, you are buying a loan note issued by Castle Trust Direct plc, and sold by Castle Trust Capital plc. Castle Trust Capital plc is a British financial institution which is authorised and regulated by the Financial Conduct Authority.

How much can I invest?

You can invest from £1,000 up to £250,000. The maximum investment per transaction online is £100,000. The Stocks and Shares ISA (2018/2019) allowance is £20,000 and all Fortress Bonds are eligible.

How often do you pay the interest on a Fortress Bond?

The interest can be paid to you either quarterly, or at maturity.

Can a Fortress Bond be held as an ISA?

Each Fortress Bond also has a Fortress Bond ISA version. Fortress Bond ISAs are classed as a stocks and shares ISA. You can invest up to £20,000 with one Stocks & Shares ISA manager each tax year, with all returns free of any UK tax (subject to compliance with HMRC ISA rules). You can also transfer any existing ISA balance into a Fortress Bond ISA, in addition to your annual ISA contribution allowance.

Can I transfer an existing ISA?

Existing ISAs can be transferred into a Fortress Bond ISA, over and above your annual ISA contribution limit.

Is my investment covered by the FSCS?

Castle Trust is authorised and regulated by the Financial Conduct Authority and is a participant in the Financial Services Compensation Scheme (FSCS). Find out more on our FSCS page.

Are there any risks associated with investing in a Fortress Bond?

You risk losing capital should Castle Trust become insolvent.

What does Castle Trust do with the money you invest?

To generate your investment returns, Castle Trust uses the majority of the funds you invest to advance mortgage loans to residential property owners and property developers as well as making loans to consumers. The balance is held by Castle Trust in cash instruments to manage the short term cash requirement of the business.

What are the charges?

If you invest directly with us, there are no initial or ongoing management charges. If you invest through an adviser, they may levy a charge to you for their services.

What about tax?

Income payments and returns at maturity are paid to you gross, so you'll need to determine whether you need to declare it in a self-assessment tax return (unless you have invested within an ISA). Tax treatment depends on your individual circumstances and may be subject to change.

Can I redeem my Fortress Bond early?

Fortress Bonds cannot be redeemed early except in the case of the death of the bondholder (on Fortress Bonds held in single names), or the death of both bondholders (on Fortress Bonds held in joint names). In these circumstances, the investment return will be calculated according to the value of the bond at the time of encashment, according to its interest rate.

What if I die before my investment matures?

If your investment is in your sole name, your executors will need to tell us what to do with your investment. We can either transfer ownership of the plan to one or more of your beneficiaries or, subject to our normal rules, allow your executors to cash the investment in early. If you have invested in joint names with someone else, we’d simply continue the investment in their name until the end of the term. At maturity we will pay the full amount due to the surviving investor.

Can I manage my Fortress Bond online?

If you register for an online account, you will be able update your personal details, and view valuations of your Fortress Bond online.

Can I change my mind?

You have the right to cancel your Fortress Bond for 14 days from your receipt of the cancellation form - we call this "the Cooling Off Period". The Cooling Off Period is there to enable you to cancel your investment should you change your mind. If you are in any doubt regarding the suitability of the Fortress Bond to you and your personal circumstances, please speak to a qualified financial adviser before investing. Castle Trust does not provide financial advice.

You can download our Information Pack here

How to apply

Our aim is to simplify the application process. Select your chosen method below and, if you have any questions about the application process, please call us on (Freephone) 0808 164 5000 between 9am and 5pm, Monday to Friday. 

Apply online

You can apply online through our investor portal (except for ISA Transfers, which are postal applications only).

This will allow you to:

  • Make investments
  • View investment history
  • Contact us via secure messaging.
Apply online

For additional support please call: (Freephone) 0808 164 5000

Apply by phone

If you would rather speak to someone by phone, or if you have any questions, please do not hesitate to call on (Freephone) 0808 164 5000, between 9am and 5pm Monday to Friday.

For those wishing to make an ISA transfer, please take a look at our “Apply by post” section as you may only make an application by post.

Apply by post

You can also apply by printing off the appropriate application form.

Once complete, please send your form, together with a cheque, to: Castle Trust, PO Box 6965, Basingstoke RG24 4XE

If you would like us to send application forms and product literature to you by post, please do not hesitate to call us on (Freephone) 0808 164 5000, between 9am and 5pm Monday to Friday.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status, terms and conditions. This website is for information purposes only. If you are in any doubt regarding suitability of our products please seek advice from an accredited independent mortgage adviser.

You risk losing capital should Castle Trust become insolvent.

Castle Trust is the trading name of both Castle Trust Capital plc (company number 07454474) and Castle Trust Capital Management Limited (company number 07504954). Castle Trust is authorised and regulated by the Financial Conduct Authority, under reference numbers 541910 and 541893. Registered office: 10 Norwich Street, London, EC4A 1BD. Registered in England and Wales.

© 2018 Castle Trust. All rights reserved.

This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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