Unfamiliar With Bridging Loans?

Here are our two most frequently asked questions about these types of loans:

Why do borrowers choose bridging finance?

Borrowers choose bridging finance for a variety of reasons. We have listed some below:

  1. Speed of funds – bridging loans can be up to 12 weeks quicker to complete than a conventional mortgage. This can assist the borrower in a number of ways such as:
    a) 28 day exchange/completion for an auction purchase.
    b) Maximising a business opportunity
    c) Repayment of a tax bill
    d) The renovation and sale of an investment property
  1. Mortgage criteria – most mortgages are based on income multiples, however as all of the costs of a standard bridging loan are deducted from the gross advance there is much less emphasis on how much the borrower earns.
  1. Credit profile – if a borrower has a poor credit history they are unlikely to obtain a standard mortgage. Where a borrower is looking to repay a bridging loan via the sale of the security the credit profile of a client has less impact.
  1. Where funds are only required for a short period of time, typically 6 to 12 months.

What happens if the borrower defaults?

If the borrower fails to repay we would enforce the legal charge and take possession of the security. We would look to sell the property to recover any monies owed plus interest and default sums. To ensure the security is adequate the Loan to Value is always 75% or below calculated on the loan plus interest to reduce the risk of capital losses.

You can download our comprehensive full “Guide To Peer to Peer Loans” by clicking here.

 

 

 

 

 

 

 

 

 

10% p.a. Tax Free With An Innovative Finance ISA

 

10% p.a. Tax Free With An Innovative Finance ISA

You may well have read about the introduction of the new Innovative Finance ISA that is being launched in April.

This means that you will be able to invest in peer to peer lending products tax free. And, if you choose to do so via The House Crowd, you will be able to earn 9% tax free on our standard peer to peer loans or 10% tax free on our peer to peer new build development loans.

The fixed interest rates compare favourably with investments offered on other peer to peer platforms.

As with all loans, your capital is at risk, however, we mitigate the risks, as our loans are all secured against property*, whilst many other platforms make unsecured loans to businesses with no security.

At present, we operate under an FCA interim permission. Our application for full permission, which we submitted in October, is still being processed by the FCA and we will not be able to offer the ISA until the FCA have finished doing that.

Once we are fully authorised, you will be able to invest up to the ISA limit each year (currently £15,240) and you will be able to maximise your returns by transferring any ISA balances you hold with other providers to a House Crowd ISA if you choose to do so.

We expect to be in a position to launch the ISA within the next few months and will let you know as soon as we have news.

If you would like further information about how the Innovative Finance ISA works visit:

https://innovativefinanceisa.org.uk/

*Risk warning: Interest payments are not guaranteed if the borrower defaults. The value of property can go down as well as up and your capital is at risk. If the secured property cannot be sold for more than the amount of the loan you may lose some or all of your capital.

In respect of Peer to Peer investments, The House Crowd is authorised and regulated by the Financial Conduct Authority under interim permission number 665205 to conduct peer to peer lending activity in the UK.

 

 

 

 

 

 

House Crowd Project 156-Station Road, Marple-UPDATE

House Crowd Project 156.

Station Road, Marple

The demolition work is now complete and construction is well underway and progressing nicely at our development on Station Road, Marple.internal image external extension

The new rear extension which will become a spacious living area is starting to take shape with brick and blockwork proceeding nicely.

Formers are in place and the position of the patio doors gives an idea of how the images on the CGI’s will actually look.internal image boarded attic
Pictures taken on site this week show how internally our contractors have boarded and skimmed a number of the rooms, the feature brickwork arch which was hidden away in the attic will look amazing when finished.

internal image marple fireplace

 

 

 

 

 

 

 

The  new front bedroom is taking shape now and the feature bay windows really do make the most of the large room.

We have just launched phase 2 of our Newton Heath, Manchester development so please register below for more details-

Register Now For More Information

Spring Into Action

Regent Street Town Houses, Manchester 

Whilst our last set of photographs showed a light dusting of snow across the site the latest picture shows that spring has finally arrived and the contractors are steadily proceeding with internal blockwork on the 6 townhouses.DSC04306

We have had a huge amount of interest from local house buyers and our estate agent is receiving requests for property information now that their salesboard has taken a prominent position on our site.

As work proceeds over the next few weeks we will continue to keep you informed with features and articles showing plenty of photographs and updates.

Our film crew have also been on site filming the build stages so we will have some really great footage from laying the foundations to laying the carpets!

You may also be interested in our development at Station Road in Marple Cheshire which is also starting to take shape!

 

We have just launched phase 2 of this development so please register below for more details-

Register Now For More Information

It’s Just a Bit of Snow

Regent Street Town Houses, Manchester 

Photos of the building works at our Regent Street Mews site today can hardly be described as a total white-out but in fairness I for one am happy to be sat next to a large radiator with a hot cup of tea!snow 2

As you can see from our latest set of photographs from Andrew the inclement weather hasn’t been holding up the contractors who will soon (snow permitting) start the ground floor internal blockwork.

The bricklayers have loaded up the slabs with blocks ready for a break in the weather and then townhouses will start to take shape.

And our estate agent is moving equally as fast having already sold a number from plan with over 475 requests for property information from Right Move alone!snow

Over the next few weeks we will continue to keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.

You may also be interested in our development at Station Road in Marple Cheshire which is also starting to take shape!

 

We will be launching phase 2 of this development later in March so please register below for more details-

Register Now For More Information

Out on the Floor

Regent Street Town Houses, Manchester 

Photos of the building works at our Regent Street Mews site very early this morning
IMG_2599

All 6 floors have been laid after only 4 weeks – now that’s quick work by anyone’s standards!

It’s taken no time at all to reach dpc level and the contractors have been fitting the concrete pot and beams floors this week. Before you know it (probably in the next set of photographs) we will have the window formers in place and you will start to see the external skins flying up.
We have had our film crew down in the last few days filming the build stages so that one the properties are complete we will have a great video showing the process.

And our estate agent is moving equally as fast with 2 units out of the 6 have already sold and there have been over 475 requests for property information from Right Move alone!IMG_2594

Over the next few weeks we will continue to keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.

 

 

 

House Crowd Project 156-Station Road, Marple-UPDATE

House Crowd Project 156.

Station Road, Marple

Demolition is well underway and progressing nicely at our development on Station Road, Marple.Marple rear external demolition 1.2.16

This week we have dropped the ceilings on the first floor to enable us to create two good sized bedrooms and a bathroom on the second floor.

The photographs taken on site this week show extensive demolition work to the rear of the property which will look fantastic once finished as you can see the CGI below. The old kitchen will be developed into a fantastic open planned living space.

 

As promised over the next few weeks we will keep you informed with blogs showing how the work is proceeding with photographs and updates.Marple internal demolition 1.2.16Marple external front demolition 1.2.16

The CGI’s produced by our architect shows what we are sure you’ll agree is going to be a vast improvement on the current property!

Marple_Low Res

Marple Interior CGI

Building on a Strong Foundation

Regent Street Town Houses, Manchester 

Laying the foundations: Our new build development of 6 town houses at Regent Street in Manchester is well underway, with a 28 week month build schedule.Newton Heath Foundations 2

The Contractors have been busy clearing the site and excavating the foundations for the 6 town houses.

You can clearly make out where the living room, kitchen and carport areas of the properties will sit within these three storey 4 bedroom modern family homes.

The Ground floor of each property feature a spacious entrance hallway, WC and substantial modern open plan living with open plan living/dining area and a modern fully fitted kitchen.
The open plan living space opens onto a generous garden with paved and turfed areas for those sunny Manchester weekends and BBQ’s (ok we may be stretching it a bit saying we get sunny weekends in Manchester but at least you will be able to run indoors when it starts spitting!).

Newton Heath Foundations 1

Over the next few weeks we will keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.

 

 

 

The House Crowd TV Advert

We are pleased to announce that our first TV advertising campaign starts on TV on Sunday and will be shown across a wide range of channels including Channel 4 and Dave, I didn’t realise that Dave had expanded his business from a bank to a TV station but you learn something new everyday!

You can get a sneak preview here by clicking here

The campaign is scheduled to kick off (excuse the pun) with a spot in Tottenham Vs Sunderland this Sunday 17th January at 09.42 on BT Sports.
Rather than settling down with the Sunday papers you’ll be able to see our ‘Frazer’ instead of a repeat of the other ‘Frazier’.

Also we are very excited to announce that we have moved into house building starting off with a small exclusive development of just 6 townhouses close to Manchester city centre, but are looking at starting much larger developments over the next six months.

 

 

 

House Crowd Project 156-Station Road, Marple

House Crowd Project 156.

Station Road, Marple

Work has begun this week on our latest exciting development project in Marple, Cheshire.

The property is currently in a distressed state but we will be transforming it over the course of the next 18 weeks into a fantastic 21st century family home.

As you can see from photographs Frazer took on site yesterday, the kitchen and lounge are in need of some serious work.

hcp156 kitchen hcp156 room 2DSC03513

Over the next few weeks we will keep you informed with blogs showing how the work is proceeding with photographs and updates.

The CGI’s produced by our architect shows what we are sure you’ll agree is going to be a luxury 5 bedroom property in a much sought after part of Cheshire.

Marple_Low Res

Marple Interior CGI