All About MangoPay: What You Need to Know About Our New Secure Payment System

You may have noticed, along with the launch of our shiny new website, that we have integrated a new payment system named MangoPay. So what is this new, fruity-flavoured payment system? We’ve been getting a few enquiries since the system launch, so I thought it would be a good idea to give you some background.

What is MangoPay?

MangoPay is a well-respected, pan-European company, which was set up directly by The Leetchi Group in 2012. At that time, Leetchi was a crowdfunding platform, and developed MangoPay to meet the payment service needs of their own platform. So successful was their development, that they turned this internal system into a standalone product: MangoPay. Leetchi now provides financial service solutions across Europe.

MangoPay currently has over 1000 business platform customers, and is available in 22 countries across Europe, offering multiple currencies, as well as domestic and international payment methods. It was acquired by the leading French banking group, Crédit Mutueal Arkéa, last year, and have also recently partnered with London-based GoCardless. It’s also partnered with large banks, including Barclays, Commerzbank and Sabadell.

What does MangoPay do?

MangoPay itself is a secure payment flow system that allows both bank transfers and debit card transactions to be tracked automatically within the system. Deposited investment sums are held in escrow until the property has become fully-funded, at which point your balance is moved to the relevant SPV account and sent to our legal team in order to complete the property acquisition.

Where you earn rental income, interest, and so on from your investments, credit is paid into your personal MangoPay account, directly on The House Crowd platform, in your e-wallet. From there, you can automatically collect your money by withdrawal, and also add to it at any time.

What about security?

All client funds are segregated and administered by MangoPay within The House Crowd’s system and Mangopay itself is regulated separately by the EC (European Commission). As such, the FCA compliance within which we work at The House Crowd, combined with the regulations under which MangoPay is regulated, equates to a double dose of regulatory rigour!

In the event that the target sum for a property is not raised, all deposited sums are returned directly to the investor.

In terms of fraud prevention, MangoPay has a few set rules:

Firstly, no more than 10 transactions are permitted to be performed with the same card within a 24 hour period. After this number, no further transactions will be accepted.

Secondly, MangoPay refuses payments from blacklisted countries. These blacklisted countries are ones which are considered to have insufficient measures in place to combat both money laundering and the financing of terrorism.

Thirdly, MangoPay refuses all transactions that do not benefit from liability shift (applies only to payments in Euros). Transactions must pass MangoPay’s 3D Secure Authentication procedure.

FCA Compliance

MangoPay do have a reciprocal relationship with the FCA, with every financial regulator within the EEA, and have passported their licence. All data is held in a secure data centre called EBRC in Luxembourg, in accordance with very stringent data protection laws. Funds are acquired in the UK, via Barclays and each day said funds are settled in a segregated client account, held in trust at ING Luxembourg, which means the funds are 100% guaranteed, unlike the FSCS which only guarantees £75k.

There are no more risks holding the data at a Luxembourg based data centre than a UK data centre.

We have taken a lot of time to decide on the right payment system for The House Crowd. We were adamant that the system we used was fully secured, both in terms of financial data, and personal information. So, if you had any concerns about the new MangoPay system, please rest assured that we have ensured it’s as watertight as it gets.

As always, if you have any questions at all, please don’t hesitate to get in touch. We are always here to answer your queries, and to help in any way we can.

Happy investing!

Why The UK Rental Market Is Surging

A recent report has revealed that property in the UK is swinging more towards the rental market. As many commentators have mentioned, there has been a significant reduction in home ownership in the past number of years and many expect that this trend will continue.

The summer slowdown has seen properties with four bedrooms or more are struggling to sell, and as a result have remained on the market for an average of 74 days, according to data from RightMove.

Property analysts are speculating whether the property market will gain strength again during the Autumn and also get a clearer picture of the market and hopefully shake off that post-referendum hangover.

The Bank of England’s recent interest rate cut should give buyers some confidence with cheap-to-borrow money.

Although a lot of uncertainty still looms following June’s Brexit vote, the question remains:

Why is the UK is switching to a property rental market?

Firstly, this is linked to the surge of investors who were rushing to complete buy-to-let deals before stamp duty was hiked by 3% in April.

The demand for rented properties in the UK has increased by 10% due to Brexit uncertainties. Recently, the Royal Institution of Chartered Surveyors (RICs) reported the number of properties on the market was at a record low.

Another factor that should be taken into consideration is employment mobility. For example, if we look at millennials and their lifestyles, they are known for being constantly on the move, and renting a space is more practical to them than saving for a deposit.

In addition, they are very sociable. Figures from Statista highlight the importance of socialising to millennials. Their research shows that 51% stated that socialising was where their remaining disposable income was most likely to be spent. Therefore, the likes of build to rent properties are appealing as they provide communal areas for their residents, hoping that they will stay in their rented accommodation for some time. They are one demographic in particular that are currently reshaping the UK housing market.

From millennials, now turning our attention to investors. Long term investors are willing to pay just that little bit more compared with the likes of first time buyers who are looking at settling into their first home.

These are the type of investors who may have a number of buy to let properties in their portfolio and realise that as their financial liabilities reduce they will actually be able to increase rental income (providing they have done their homework properly and invested in areas that pay out suitable yields).

Whether the recent increase in buy to let related taxes, which were set by the former chancellor, will have an impact in the short to medium term still remains to be seen. If rental yields bring in enough money to cover all liabilities, and leave a wee bit extra in their bank accounts, the question is would BTL investors really pull out of this market?

If you are a BTL investor and HAVE done your homework, you’ll know that the north is the place to be. If you haven’t, we recommend Manchester. The Northern Powerhouse city has an average rental yield of 6.2%.

Investors can benefit from significant demand from the city famous for its two Premier League clubs and music scene, as well its big student population. Average property prices in Manchester stand at £135,000.

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As we’ve previously mentioned, there are numerous factors as to why the UK property market trend has now switched from home ownership to rental.

The Brexit vote has caused some concern and confusion for now, and until the Brexit mist clears we will see fewer people committing to long-term property purchases. The likes of millennials are also changing the housing model and with lucrative investments across both sides of The Pennines, the rental market switch in the UK looks very buoyant indeed.

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How to use the New House Crowd Website

Welcome to the new House Crowd website. With all of the changes we have made, we wanted to provide you with a simple video guide to help guide you through our new improved site. To make it even easier to follow, we have split the guide into two videos with how to register on our the first video directly below, and how to invest using your e-wallet the video beneath that.

If you have any issues, please click on our “live talk” button at the bottom right of the site or email [email protected] and we will aim to help.

How to register on our new House Crowd website

When you are ready to invest you will need to verify your identification and deposit funds into your e-wallet – you can do this at any time (and withdraw unused funds from your e-wallet). If you would like to do this now please watch the video below which explains the process

How to add funds to your e-wallet and verify your identification