The emergence of peer to peer investing directly correlates with investor frustration in more conventional lending options. High-street bank savings accounts and ISAs might seem simpler, but returns are often much lower – and they require you to tie up your money for significant periods of time to realise a profit.
The modern investor doesn’t want to wait around to make money, and the modern borrower is less inclined to rely exclusively on traditional financial intermediaries like banks. Peer to peer lending (P2P lending) has risen to meet both needs.
It isn’t always the easiest way to invest, and it can result in increased risks for the lender if loans are not secured. But if you’re well informed and work with the right provider, peer to peer investing can be a highly profitable alternative to conventional methods – particularly when tangible, high-value assets such as property are in play.
At The House Crowd, we offer a secured peer to peer lending service designed to allow you to loan money directly to property owners and businesses. It’s simple, intuitive, and designed to address your most important property investment needs. Here’s how it works:
You can get started with peer to peer investing through The House Crowd from just £1,000 and loans are typically short-term, lasting from 6-18 months.
Between 2015-17, the average was 9.2% p.a. – significantly higher than you’d get with a savings account.
When you make a profit through our platform, you keep it.
All investments are safeguarded by a registered legal charge against the property in question. If the borrower defaults, we have the right to take control of the property and force a sale to protect your investment.
Our maximum Loan-to-Value (LTV) ratio is 75% - with valuations determined by an independent RICS surveyor, the property market would have to fall by over 25% for you to lose money. During the last recession it fell 13% - that gives you an idea of how bad things would need to get!
with 6 to 18-month terms, your money is never tied up for too long.
You always know where your money is going, who it’s going to, and for what purpose.