FAQs

What is marketplace lending?

Marketplace lending connects borrowers directly to investors, exceptionally efficiently matching the demand and supply of capital.

Is the marketplace lending industry regulated?

From 1st April 2014, all marketplace lending platforms have been subject to Financial Conduct Authority (FCA) regulation. This is a welcomed step to maintain industry-wide high standards.

Where can I see performance data?

Our performance data can be found on our Statistics Page

How do I make a complaint?

To make a complaint, please visit our Complaints Page and follow the suggested procedure.

What are AML checks?

AML checks are Anti-money Laundering Checks. CrowdProperty are required to verify your identity to prevent Money Laundering. We will require a proof of address and proof of identity to verify your identity.

Why I am not receiving your emails?

Please check your junk mail or spam folder as this email can sometimes be sent there. If you are still experiencing problems please email us at info@crowdproperty.com

Is the marketplace lending industry regulated?

CrowdProperty is a fintech/proptech lending innovator, authorised and regulated by the FCA. We offer quick, easy finance for property professionals and property-secured income for investors.

How long have CrowdProperty been operating?

CrowdProperty have been operating since 2014.

How does CrowdProperty make money?

CrowdProperty is paid by the borrower for financing their projects – an initial fee and then interest on the amount they are loaned through the platform for each project, when it is completed.

Who can invest with CrowdProperty?

Any individual can invest with CrowdProperty provided they are over 18, have a UK bank account and have a proof of identity and address within the EU. Unfortunately we cannot open accounts for US Citizens or US tax payers

Can a company invest with CrowdProperty?

Company directors or shareholders can invest through their company with CrowdProperty. Simply register your account as a company and enter the required information.

Can I invest tax-free via an ISA (or IFISA)?

Yes, you can invest tax-free by setting up a CrowdProperty IFISA, subject to annual allowances. You can also transfer in existing ISA pots. To learn more, please view our IFISA page.

Can I invest through a SIPP or a SSAS pension?

Yes, you can invest with CrowdProperty through a SIPP or SSAS. To learn more, please view our pension section below and/or pension page on our website.

Do you accept international investors?

We accept investors with UK bank accounts that can provide a valid proof of identity and address for these EU countries: Austria, Belgium, Bulgaria, Republic of Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Croatia, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Martinique, Mayotte, Guadeloupe, French Guiana, Reunion, Saint Martin, Gibraltar.

Do I need a UK bank account to invest with CrowdProperty?

Yes.

I live outside Europe; can I invest with CrowdProperty?

Unfortunately not. We will be sure to announce if this changes in the future.

How do I set up an account?

To register as a lender with CrowdProperty simply click the link provided and add your necessary personal or company details.

What information do I need to provide?

To register an account, we will need: your full name, email address, date of birth, mobile number, proof of identity and proof of address (alongside other corporate details if investing through your company).

Are there any fees involved with setting up a lending account?

Setting up a standard lender account (individual or company) is free of any charges.

How do I reset my password?

To reset your password, log in to your lender account and view the ‘personal details’ page. Scroll down to the ‘Account Preferences’ section, and where it says ‘password’ enter your new password and confirm this in the confirmation box. Save this information and your password will reset.

How do I close my account?

To close your account, please contact a member of our team who will follow the necessary process. Please note, you cannot close your account if you have any active investments.

How do I upload my proof of identity and address?

Ensure your proof of identity is a valid passport or driving licence with a clear picture, and your proof of address is a council tax bill/utility bill/bank statement clearly showing your name, and that it has been received within the past 9 months. Then, click the ‘my account’ button and the ‘personal details’ tab. Scroll to the KYC documents section and click the ‘choose file’ button to choose a document uploaded to your computer.

What are Anti-Money Laundering and Know Your Customer checks?

As an FCA regulated and authorised business, it is necessary that we perform certain Anti-Money Laundering and Know Your Customer checks to verify your identity and prevent money laundering. For this reason, we ask every lender to upload a proof of identity (we can accept a valid passport or driving licence) and a proof of address (we can accept a council tax bill, utility bill or bank statement). We are partnered with a third-party provider who perform electronic checks against certain watchlists also.
For this reason, lenders are only able to pledge and open an IFISA account once these checks have been passed.

What happens to my account and investments if I die?

The investments become part of your estate and will be managed in the first instance, by the Executors of your Will and then the beneficiary(ies) to whom you leave your estate. They, like you, will only be able to access and withdraw the funds you have pledged to projects and the interest made once the project has been completed.

How do I choose which projects to invest in?

For each CrowdProperty project, we release project information 24 hours before the project launch. We provide high level project statistics along with details on the project plans and information about the borrower and their team.

Do I have shares (equity) in the projects I loan to?

No. As CrowdProperty is a marketplace lending business, we deal exclusively with debt. Every pledge will be a loan towards the project as specified for the developer, and returns will be in the form of interest on the capital loaned.

How do I pledge towards a project?

You will hear about project webinars, and launch dates and times, via email. On a project launch day, ensure you are logged into your personal lending account. Live and funding projects appear at the top of the ‘projects’ page. Click the ‘pledge towards this project’ button, specify the amount you would like to pledge and the wallet which you would like the pledge to come from: either standard/business lender, IFISA or pension. Once your pledge has successfully been made, you will receive an email congratulating you and it will immediately show within the relevant portfolio.

Who am I lending to?

You are lending to carefully selected property projects run by professionals. We require that either the borrower, or the contractors they have partnered with, have a proven track record of experience. To learn more about the specific borrower per project, attend the project webinar the night before launch.

Where can I find the loan agreement?

You can find the loan agreement on your loan portfolio. Click the view pledge button next to the relevant investment and find attached the loan agreement.

How many projects can I pledge towards?

You can pledge towards as many projects as you choose.

How do I choose which Account I would like to pledge from: Standard, IFISA or Pension?

When pledging (view ‘how do I pledge towards a project’ for further information), specify the amount that you would like to pledge. Beneath this field, you must actively select which account you would like the pledge to come from. You will have the option of either Standard individual, Standard Business, IFISA or Pension, depending on which accounts you have set up.

There’s no project live, what do I do?

If there are no projects live and available to invest in, do not worry. We are constantly working hard to ensure we have a strong pipeline of projects available to lenders. To see which projects will be available to invest in in coming weeks, view our ‘anticipated project pipeline’ on our homepage. Once a project is ready to launch, we will email you with webinar and launch dates and times.

Is there a minimum or maximum investment size?

The minimum investment amount per loan is £500. We currently do not have a maximum investment size, however we may introduce pledge limits on a project by project basis.

How long is the investment term?

Loan terms can be anywhere from 6-24 months and vary depending on the project you pledge towards.

Can I access my money early if necessary?

When you lend money through your CrowdProperty account, you commit to lending that money for the term of said investment. During this time, it is not possible to withdraw early the original investment amount.

When do I get my capital and interest back?

You will get your capital and interest back at the end of the loan term, when the borrower has repaid the loan.
If the borrower part repays early, you will receive a calculated partial repayment of your original pledge amount.

Do I have to pay tax on my interest?

Interest earned from any loan is treated as investment income by HM Revenue & Customs. The return you receive on your investment is paid gross; no tax is deducted “at source” by marketplace lending platforms. Our investors are responsible for the payment of any tax due of them to HMRC. Tax will be payable at your marginal rate.

How do I calculate my tax liability?

Investors can download a tax statement from their account which will calculate the amount of interest earned within a specified period for tax purposes.

Does CrowdProperty deduct income tax on behalf of its investors?

CrowdProperty does not deduct income tax on behalf of investors. We do calculate the income tax which can be found on your tax statement. No tax is deducted “at source” by marketplace lending platforms. Our investors are responsible for the payment of any tax due of them to HM Revenue & Customs. Tax will be payable at your marginal rate.

How much interest can I earn?

The interest on all loans is up to 10.5% per annum.

I’ve pledged to a project; how do I deposit money in my lender account to fulfil my pledge?

Once you have pledged to a project, you can either:
A. Deposit funds in your account immediately. You can do this by viewing the deposit information on the portfolio of which you have pledged. Your portfolio will show you the account number, sort code and reference you must transfer to. Please note, whilst this money is not actively employed in the project you have pledged towards, you will not earn up to 10.5% per annum interest. Once we are ready for all funds to be transferred, we will then move the funds to fulfil your pledge across from the appropriate wallet to the project wallet.

B. Deposit funds in your account once we have requested them. Approximately 1-8 weeks post project launch, we will send a message to your lender inbox requesting you to transfer funds by a specific date. The necessary account number, sort code, reference and amount will be detailed in this message. These funds, once deposited in your wallet, will move almost instantaneously across to the project.

I’ve pledged to a project; when do I need to deposit money in my lender account?

Once you have pledged to a project, you can deposit funds in your account either immediately post pledge, or once we have sent an email requesting funds. For more information, please see ‘I’ve pledged to a project; how do I deposit money in my lender account to fulfil my pledge?’. Please note, you do not need to have funds deposited in your account prior to pledging in order to make a pledge.

Can I transfer funds from a joint account?

You can transfer funds towards a project from a joint bank account. We will require a proof of identity and proof of address for every named account holder. The transfer must come from an account associated with the name of the account of the lender.

Where is my money held until it goes to the borrower?

Once you have deposited money, in whichever account you have chosen to pledge from, it is transferred across to the specific, secure project wallet. Once all funds have been collected, money is transferred to (and held by) our solicitors. An independent monitoring surveyor will assess the progress of individual projects and recommend to CrowdProperty how much money needs to be drawn down from the solicitor’s account to the borrower. Only once we have a full report will money be released from the solicitors’ account to the borrower to utilise in their project.

What is a ‘wallet’?

For each and every CrowdProperty platform account that you open (starting with your Standard Account from which you can open an IFISA Account and/or a Pension Account) you are allocated a ‘wallet’ associated with that Account, by our banking partner Goji Financial Services. Each of your separate and secure account ‘wallets’ have completely unique bank details. Standard and Pension account types will have Modulr FS E-money account details and IFISA accounts have Starling account details. Funds in these accounts are not covered by the Financial Services Compensation Scheme.

What does my lender portfolio show?

Your lender portfolio shows total funds available, total funds employed in active loans, the total amount that you have lent and the amount of interest you have earned from the specific investing accounts you have created. You will also see deposit information on your portfolio – your ‘wallet’; these are the bank details you must transfer funds to for investment. It will also show a breakdown of individual projects you have pledged towards: your pledge amount, loan start and end date, and expected (or earned) interest

How do I withdraw funds from my Standard account?

If you have funds deposited in your Standard account, you can withdraw them on request. Fill in the ‘bank details’ section of your profile with the account which you would like them to be returned to, and then click the ‘withdraw’ button. This will take 1-5 working days.

How long will it take for funds to clear in my Standard account?

When you make a deposit into your Standard account, funds should clear almost instantaneously.

How long will it take for funds to be returned to me after I have requested a withdrawal?

Once you have requested withdrawal you can then expect funds to be returned to you within 1-5 working days.

How are my funds returned to me at the end of a project?

At the end of a project, funds are returned to the wallet from which they are pledged (either Standard Individual, Standard Company, IFISA, or Pension). You will then either have the option to keep money in the account and reinvest that capital and interest in future projects, to withdraw part of the funds or withdraw all funds (for more information see ‘How do I withdraw funds from my Standard account?’). Please note, funds must be returned to a bank account associated with the name of the lender. Pension funds must be returned to either the SIPP or SSAS from which they came.

How can my funds be secured, but also my capital be at risk?

When you invest with CrowdProperty, your funds are secured against an asset – the property. This means that your returns will never be less than the value of the asset itself. However, the reason your capital is at risk (as it is with any investment) is because we cannot guarantee market conditions will be positive and we cannot assure that the borrower will not get into significant difficulty with their project. For further information please refer to our risk statement.

How do CrowdProperty secure my funds?

CrowdProperty undertakes numerous measures to secure your funds. First and foremost, we have first legal charge over every project listed on CrowdProperty.com, meaning that, if the borrower were to default, we have ownership of the property and project. This is an essential, non-negotiable criterion. This means that, should a borrower default, CrowdProperty has ownership of the project and can determine the best way to complete the project to ensure lenders’ capital and interest is returned. Furthermore, only applications with certain loan-to-value, loan-to-cost, and profit-on-cost percentages will be considered. For further information, please see the CrowdProperty Shield and our Risk Statement.

How do you manage risk?

For information on how we manage risk, please refer to our risk statement.

How does the CrowdProperty Shield work?

The CrowdProperty Shield is our industry leading, three-tiered security system. It provides three strict steps to ensure we have the highest levels of security on all of the projects we lend to. All projects on CrowdProperty.com must:
1. Pass our rigorous due diligence process.
2. Ensure we have first legal charge.
3. Be subject to our unparalleled expertise.
For more information on each of these criteria, please refer to our Invest page.

What happens if a borrower defaults on a loan?

If a borrower defaults on the loan, CrowdProperty has first legal charge over the property and therefore seizes ownership. This is the same level of security that a mortgage company has. Once CrowdProperty has taken ownership of the property and project, our in-house experts will analyse what is the best route of action to follow to recover lenders’ capital and interest. We will consider market conditions, the status of the project and the current level of debt. For more information, please refer to our risk statement.

Do I need a solicitor?

CrowdProperty has a solicitor which represents us and all investors, who we act on behalf of. Therefore, you do not need to employ a solicitor.

Is my money protected by the Financial Services Compensation Scheme?

Marketplace lending is not covered by the Financial Services Compensation Scheme (FSCS) and therefore, CrowdProperty is not. The Financial Conduct Authority (FCA), which regulates us and the marketplace industry, mandates that we have to have a number of protections in place to safeguard our investors’ funds. Please see our risk statement for full details.

What would happen if the CrowdProperty platform were to fail?

The FSCS does not cover the insolvency of marketplace platforms. Lending companies, like CrowdProperty, which are regulated by the Financial Conduct Authority are required to protect investors’ money in several ways if the platform was to fail: Investor funds that have not been lent to borrowers are held by us in individual, segregated investor wallets. These funds are completely separate from CrowdProperty’s own money and we cannot use client money for our own business purposes. These funds do not form part of our assets, which means that they would not be available to creditors in the event of our insolvency. Client funds are ring-fenced, each held in individual accounts, in accordance with the FCA’s Client Money Rules. As an FCA regulated lender, we have a back-up servicing arrangement in place. This means that in the unlikely event that CrowdProperty ceases to trade, the back-up service provider would take our place in operationally managing and administering existing loan contracts between investors and borrowers. It would continue to receive loan repayments from borrowers, and to process and distribute these payments to investors. In practice, this means that if a platform does fail all of investors’ existing loans would be unaffected. The first legal charge that we take out on all property projects on our investors’ behalf would still stand if CrowdProperty became insolvent. This would continue to safeguard investors’ money and keep it secured against the asset, so that if a project developer were to default on repayments, the back-up service provider would operate on our investors’ behalf and take over the project to attempt to pay back investors’ capital and interest.

What happens if the borrower pays money back late?

Although there is an agreed loan term with the borrower, we cannot guarantee that they may not be late to repay the loan. In this instance, the interest rates for investors typically increases by 2% p.a. for each day over the loan agreement the borrower goes.

What is an Individual Savings Account (ISA)?

An ISA is an Individual Savings Account. An ISA is a 'wrapper' in which you can shelter savings and investments from tax. There are multiple types of ISA available; cash ISA, stocks and shares ISA, Help To Buy ISA, the Lifetime ISA and the Innovative Finance ISA (IFISA). You can put money into an ISA up to a set limit each tax year. This limit is known as your 'ISA allowance'. Any returns or gains made from money placed in an ISA are not subject to income and capital gains tax. You don't even need to declare ISAs on your tax return.

What is an Innovative Finance ISA?

The IFISA allows individuals to use part, or all, of their annual ISA allowance to lend funds through marketplace lending platforms. Marketplace lending allows individuals to lend directly to borrowers via an online platform. You are only permitted to open one of each type of ISA per tax year (i.e. one Innovative Finance ISA, one stocks and shares and one cash). Please see ‘How many ISAs can I open in each tax year?‘ for more information.

What is my annual ISA allowance?

The annual ISA allowance may vary each tax year. The ISA allowance for the current tax year is £20,000. You may consult the government website for more information.

What is the difference between a cash, stocks and shares and innovative finance ISA?

Interest paid on a cash ISA is tax free and designed to be suitable for short term savings - less than 5 years. Interest is received on the savings at a fixed or variable rate. A stocks and shares ISA is designed to be a tax-efficient way to invest in shares and securities for five years or more, and when you want to share in the potential growth in stock markets. The Innovative Finance ISA (IFISA) enables savers, using direct marketplace lending platforms, to receive tax-free interest over a range of time spans. Direct lending is when individuals lend to borrowers, usually through an online platform. Loan terms and lengths may vary depending on the specific provider.

When is the tax year?

The tax year runs from 6 April to 5 April.

How many ISAs can I open in each tax year?

You can open one of each type of ISA per tax year, so long as the total amount invested into them is within the limit of the annual ISA allowance - which currently stands at £20,000. For example, you can subscribe to one cash ISA, one stocks and shares ISA and one Innovative Finance ISA in each tax year. In the next tax-year you can subscribe to an additional ISA of each type again.

Can I split my £20,000 annual ISA between the CrowdProperty IFISA and other ISA products?

Yes, you can spread your annual allowance across different types of ISA.

Who can open an IFISA?

To open an IFISA you must be 18 or over, have a UK bank account and you must be a resident in the UK. Crown servant (e.g. diplomatic or overseas civil service) and their spouse/civil partner can hold an IFISA if they live outside of the UK. You cannot hold an IFISA with or on behalf of someone else.

What is a CrowdProperty Standard Loan Account?

The CrowdProperty Standard Loan Account is your central CrowdProperty account, which you open when you register to become a lender. You are not obliged to pledge from this account, and it is completely free to open. If you pledge via your CrowdProperty Standard Loan Account, you may have to pay tax on interest repaid throughout the tax year. Once you have your Standard Loan Account you can then open any of our other types of account – a CrowdProperty Innovative Finance ISA, or a CrowdProperty Pension account. It is then your choice which of your accounts you choose to pledge from.

How can I set up my CrowdProperty Innovative Finance ISA (IFISA)?

You can set up a CrowdProperty IFISA by first registering for a CrowdProperty Standard Loan Account here. Once you have completed this, log in to your account, complete your profile then visit our IFISA page, click register and enter your National Insurance Number.

When do I start earning Interest?

Money deposited in your CrowdProperty Standard, IFISA or Pension account (including any AutoInvest account) does not earn any interest whilst the funds are held in the wallet. Funds will only earn interest when invested in a project and once the project has started. We will write to you to confirm the loan start date and the date you start earning interest.

Can I transfer existing loans from my CrowdProperty Standard Loan account into my IFISA Account?

No, you cannot transfer existing loans that you have made to projects from your CrowdProperty Standard Loan Account into your IFISA.

If I do not pledge towards a project via my CrowdProperty IFISA during the tax year, does it affect my ISA allowance?

If you make a deposit in to your IFISA account, the amount subscribed will use part of your ISA allowance, even if you do not use this subscription to make an investment in a specific project. If you do not use up your ISA allowance for the tax year, it will not be carried over to the next year.

How do I utilise my ISA money?

Once a project has been made live on the CrowdProperty platform, registered lenders can view the opportunity and make a pledge towards the project from their CrowdProperty IFISA account. The amount you pledge will then be transferred to the project account at the point of the completion of legal formalities. Once the loan is completed your money will begin to earn interest in accordance with the terms of that specific project. You will be paid back your investment and interest at the end of the loan term (as with all investments, your capital is at risk. Please see our risk statement).

Is there a minimum subscription for the ISA?

Yes, the minimum initial subscription amount is £500.00.

Can I transfer money in from another ISA provider?

Yes. You will be able to complete our online ‘Transfer in Form’ to transfer existing ISAs into a CrowdProperty IFISA. You can find this function on your account under your IFISA portfolio.

Can I transfer money out to another ISA provider?

Yes, you will be able to transfer funds from your CrowdProperty IFISA to another account. This will not incur a transfer out fee.

When can I transfer my ISA from another provider to you?

You can transfer your ISA at any time, you do not have to wait until the end of the tax year.

How much of my current year ISA subscription can I transfer?

You can transfer your current years’ ISA subscription to a CrowdProperty IFISA. You must transfer the entire amount of ISA subscription you have used for this year in full.

How much of my previous years’ ISA subscription can I transfer?

Investors can transfer all or part of previous years' ISA investments to the CrowdProperty IFISA.

What happens if I go over my annual ISA allowance?

It is your individual responsibility as a lender to ensure you track how much of your annual ISA subscription you have utilised, and how many ISAs you have opened per tax year. If you realise you have overpaid, report it to HM Revenue & Customs. You can do this by calling their ISA helpline on 0300 200 3300. If you do not spot the error, HMRC will make contact with you. HMRC will identify the payment that breached the limit. It will then start the process of "repairing" the ISA. All investments in the ISA that were made after the limit was breached will no longer be eligible for tax exemption. They will be handed back to the investor. An administration fee will be chargeable if you use more than your annual ISA allowance. If you attempt to make a deposit in your CrowdProperty IFISA account, of more than your annual ISA allowance, that entire sum will automatically be transferred to your CrowdProperty standard lender account.

Do I have a cancellation period?

If you decide you no longer want a CrowdProperty IFISA, you will have the right to cancel your account within 7 calendar days of the date your account is opened. If you cancel within this period, you will remain eligible to open an IFISA with us or with another ISA manager. You will also not have used up any of your current year subscription. This will not apply if you cancel your CrowdProperty IFISA after this period.

What if I have invested in a project using my IFISA account during the 7-day cancellation period?

If you have pledged towards a project and the funds are actively employed in a loan, you will not be able to withdraw these funds until the loan term has ended. If you pledge towards a project but your funds have not yet been utilised in the project, please notify us that you wish to cancel your account by emailing info@crowdproperty.com.

When am I paid interest?

Interest is generally paid at the end of a loan term, however some projects do pay monthly interest. If a project is to pay monthly interest this will be stated on the project page.

Where are my capital and interest returned to at the end of a loan?

At the end of the loan term, funds invested via the CrowdProperty IFISA will be paid back into the IFISA account with interest. You then have the option to either withdraw part or all of the funds, or reinvest the funds.

Is interest I earn through pension lending taxable?

Interest earned through pension lending is free of tax in most circumstances.

How do I set up a pension lending account with CrowdProperty?

For details as to how to set up a pension lending account, please refer to our pension lending page.

What are my options if my pension provider will not approve marketplace lending?

If your pension provider does not authorise marketplace lending, unfortunately you will not be able to lend to CrowdProperty. If pension lending is not authorised by your provider but you would still like to pursue marketplace lending, we would strongly recommend seeking advice from a qualified independent financial adviser.

I’ve pledged to a project from my pension, how do I transfer money to my pension lending account?

Once you’ve pledged to a project from your pension lending account, you can either:

A. Deposit funds in your pension account immediately. You can do this by viewing the deposit information on your pension portfolio. Your portfolio will show you the account number, sort code and reference you must transfer to. Please note, whilst this money is not actively employed in a project you have pledged towards, you will not earn up to 10.5% per annum interest. Once we are ready for all funds to be transferred, we will then move the funds to fulfil your pledge across from your lending wallet to the project. We will send you a message via your lender inbox to notify you this has been done.

B. Deposit funds in your pension account once we have requested them. Approximately 1-8 weeks post project launch, we will send a message to your lender inbox requesting you to transfer funds by a specific date. The necessary account number, sort code, reference and amount will be detailed in this message. These funds, once deposited in your wallet, will move almost instantaneously across to the project.

How much do you charge Borrowers?

The standard borrower rate is 10% per annum interest. This is set and regularly reviewed to be competitive with traditional property project finance providers. As our rates are competitive with traditional lenders, we attract applications from quality projects, so rather than offering finance to property professionals that are not able to raise finance elsewhere, we compete for the best projects and take share in particular from banks by understanding and serving those property professionals' needs best.

Why is there a difference between the Borrower and Lender Rate?

As is standard in marketplace lending, there is a difference between the rate paid by the borrower and the rate paid to investors. This is a servicing fee paid for by the borrower through the course of the loan. This borrower fee does not have any implications for investors' personal tax positions - personal tax liabilities for investors, if applicable, will be based on the rate up to 10.5% . As with investor cashflows, CrowdProperty receives this cash at the end of the loan when it is paid. In the unlikely event that the platform winds-down, this structure works well as this end-of-loan cashflow is ample to cover the costs of managing outstanding loans through to ensure repayment of capital and interest owed to lenders.

How are we different from other specialist property lending platforms?

CrowdProperty is different to other platforms in a number of important ways. Specifically, we:

1. Always take first charge security, the highest level of security on a property

2. Are founded with unparalleled, hands-on expertise at the heart of the business, meaning projects are assessed with deep, specialist property experience

3. Originate projects directly meaning more efficient economics and the building of long-term, trusted and loyal developer relationships

4. Attract the best projects with competitive interest rates, taking market share from banks by knowing what property professionals need (not funding projects unable to raise elsewhere)

5. Are an independent marketplace, only ever funding third party projects with structured project appraisal and approval governance processes

6. Are singularly focused since foundation on excellence as a property development lender, forever building stronger and deeper expertise

7. Offer upmost transparency on the project, the borrowing entity and the people involved in the project

8. £231.44m in capital and interest repaid

9. Are directly authorised and regulated by the FCA

I’ve made a request for an ISA transfer, can I pledge?

ISA transfers can take anywhere up to 30 days. We will request funds for a project anywhere between 1-6 weeks post project raise. Therefore, as you cannot guarantee funds will be in your account by the required date with an ISA transfer, we recommend waiting until funds have arrived in your account before making a pledge in this instance. This is to avoid the disappointment of successfully pledging, however then having to have your pledge cancelled as a result of the required funds not being available.

Do I need to be an experienced investor/developer to obtain a loan through CrowdProperty?

Experiential knowledge is invaluable in the property market. At CrowdProperty, we focus on the potential of every project. This is why our team of experts appraise projects to determine the credit worthiness and ability to repay. Thus, we prefer to work with projects that have experienced developers undertaking them.

What factors do you consider when deciding whether or not a development should be listed on the CrowdProperty platform?

As a duty of care to protect our borrowers, we ensure that all projects comply with FCA (Financial Conduct Authority) regulations. We also carefully assess every project contextually and against KPIs (Key Performance Indicators). We require all our projects to have planning permission (with the exception of Planning Gain finance product). We assess projects based on key performance factors such as the Profit on Cost, Loan to GDV, Loan to Value and Loan to Cost.

Is there a limit on how much a developer can borrow through CrowdProperty?

As a fast scaling business with a vision of lending £400m of property project finance per year by 2024, we currently have an upper limit of £10,000,000. The lower limit for loans on CrowdProperty.com is £100,000.
CrowdProperty can also provide mezzanine finance to experienced property developers via CP Capital.

What security will I need to offer you?

There are no equity shares. We take first charge on all our projects on CrowdProperty.com to protect both our borrowers and investors.
CrowdProperty can also provide mezzanine finance to experienced property developers via CP Capital.

How much interest do you charge?

We charge 8.5-10.5% per annum interest and a CrowdProperty fee of 1-4% which is project dependent. Borrowers will then pay for legals and IMS surveys during the project if drawdowns are required. We regularly benchmark our pricing to ensure that we are very competitive and pride ourselves on having no hidden fees. Do assess any offer for finance very carefully – they are often very complicated.

How long are the loans for?

Loan terms are between a minimum of 6 months through to a maximum of 24 months.

What are the costs associated with these loans?

Other than the interest rate and fees, IMS reports will be £750 +VAT (the number required depends on the drawdown structure) and legals will be 0.35%-0.5% of loan amount, with a minimum of £1,500 + VAT. Finally on exit, a £450 charge is levied by the Land Registry to redeem the 1st charge, which is paid directly to the Land Registry at cost.

Can I use my own solicitor?

Yes, you can use your own solicitor. However we suggest that you work with a solicitor with a good track record of conveyancing.

Can I repay the loan early?

Yes, you can repay your loan early, this should be within the minimum term of 6 months and maximum loan term of 24 months. You will not be charged for early repayment.

What happens if I can’t repay the loan?

CrowdProperty has first legal charge over the property and therefore has the right to repossess. This measure will only be used as a last resort and we will work with you to find acceptable repayment methods. If you show no signs of reasonably being able to repay the loan then your property could be at risk of re-possession. Please refer to our risk statement.

Do investors get any equity or share of profits from projects?

No, investors do not get any equity or share directly in the profit from your project. CrowdProperty is a marketplace lending business that deals exclusively with senior, secured debt. Every pledge will be a loan towards the project as specified for the developer, and returns will be in the form of interest on the capital loaned.

Does CrowdProperty do buy-to-let mortgages?

No, CrowdProperty do not offer buy-to-let mortgages. This is because this type of vanilla property finance is cheapest from mainstream banks and we recommend that route for anyone seeking conventional buy-to-let finance.

What sort of projects does CrowdProperty finance?

New build, self-build, air rights, commercial to residential conversion, HMOs, serviced accommodation conversion, extension and refurbishment, title splits, bridging purchases, auction purchases amongst others.

How is CrowdProperty different from other direct lending platforms?

What differentiates us from other lenders is our expertise and responsiveness. We place huge importance on providing a quick, simple and transparent service to property professionals to give you more time to focus on growing your property business rather than marshalling finance.

What is AutoInvest?

AutoInvest is an investment product which allows you to automatically diversify your funds across each and every project which launches on the CrowdProperty platform.

How does it work?

Once you have set up an AutoInvest account, our algorithm will ensure your AutoInvest funds will be lent towards each and every project launched on the CrowdProperty platform. A percentage of each loan will be allocated to AutoInvest; that will then be split proportionately amongst AutoInvestors. This will be calculated by the algorithm, depending on your account specifications, the number of AutoInvestors and the amount of the project available to AutoInvest funds.

Who is eligible to set up AutoInvest?

You are eligible to set up AutoInvest if you have a CrowdProperty Standard, IFISA or Pension account. To see if you are eligible to set up a CrowdProperty lending account, please see the lender FAQ ‘Who can invest with CrowdProperty’.

How do I set up AutoInvest?

Firstly, deposit funds in the account for which you would like to set up AutoInvest for, Standard, IFISA or Pension. Slide the AutoInvest tool to ‘on’, and complete the fields on the settings page according to your specific requirements. Click save, and AutoInvest set up will be complete. For more information, see the ‘How do I set up AutoInvest’ section on the AutoInvest page.

Can I set-up AutoInvest with my CrowdProperty IFISA account?

Yes, when setting up AutoInvest you can specify if you wish to AutoInvest funds from your IFISA. You can AutoInvest from your Standard, IFISA and pension accounts.

Can I set-up AutoInvest with my CrowdProperty Pension account?

Yes, when setting up AutoInvest you can specify if you wish to AutoInvest funds from your IFISA. You can AutoInvest from your Standard, IFISA and Pension accounts.

Can I continue to make manual pledges with AutoInvest?

Yes, you can still manually pledge from your Standard, IFISA or Pension account while AutoInvest is turned on. If you make a manual pledge, this will mean you have more than one loan in the same project; a loan via AutoInvest and a manual loan. These will show separately in your manual and AutoInvest portfolios.

Can I use AutoInvest to ensure my place on projects?

By setting up an AutoInvest account, you ensure your funds are pledged to each and every project launched on the CrowdProperty platform. No more than 20% of your AutoInvest funds will be invested in one project. This is to make sure that your funds are diversified, and to prevent lenders from being able to ‘reserve’ large amounts for specific projects on a one-off basis.

What rate will I earn using AutoInvest?

AutoInvest funds will earn the same interest rate as manual lending, up to 10.5% p.a. The rate of interest for each project, along with the loan term and expected interest, can be viewed on your AutoInvest Portfolio. Interest rates for projects are also released in the project information, 24 hours prior to project launch.

Can I edit my settings once I have completed AutoInvest set-up?

Yes, you can.

Can I cancel AutoInvest at any point?

AutoInvest can be cancelled at any point. If funds remain in your account which have not been pledged to projects via AutoInvest, they will be available for either manual lending or withdrawal. Funds that are invested in projects will be repaid to the account that they came from at the end of the loan term. As with manual lending, funds cannot be removed from active loans.

Are there any fees?

There are no fees associated with AutoInvest.

Can I delete a pledge from my AutoInvest account?

Yes. You will receive email notification when a pledge has been created by AutoInvest. You have a 24 hour cooling-off period following pledge creation to notify us if you would like to delete the pledge. We are unable to delete pledges following this 24 hour period; capital and interest will be returned at the end of the loan term. Funds cannot be removed from active loans.

How much of a loan will be taken up by AutoInvest funds?

A percentage of each loan raised on the platform will be allocated to AutoInvest. This percentage will depend on the loan size, the amount of AutoInvest funds available, and investor demand.

I can’t open an AutoInvest account as AutoInvest is closed to new lenders – why?

There may be times when you are unable to open an AutoInvest account. This is as demand is extremely high, and therefore we have temporarily shut off the ability to create a new account, to ensure funds that lenders have already allocated are being utilised and diversified to the desired extent. The AutoInvest function will be ‘turned on’ once again when we have a greater supply of projects.

I have set up an AutoInvest account, but AutoInvest is closed to new lenders. Will this affect me?

No. When AutoInvest is closed to new lenders, existing customers with AutoInvest accounts will still have their funds utilised in every project launched on the platform.

What is the minimum amount I must deposit in my wallet to open an AutoInvest account?

The minimum amount required in your wallet to open an AutoInvest account is £500.

Why is the maximum pledge size 20% of my account value?

Your maximum pledge size is 20% of your account value, first and foremost, to ensure you have a good extent of diversification. You will, as an absolute minimum, be invested in at least 5 projects. The 20% cap is also to prevent people creating an AutoInvest account for the wrong purposes – to automatically create a large pledge on a one-off occasion to ensure their place on a project. If you intend to create substantial, singular pledges on a selective basis, our manual product will be more suitable for you.

Can I select criteria as to which loans I would like to pledge towards from my AutoInvest Account?

Currently, by setting up AutoInvest you agree to pledge to each and every project launching on our platform. As the product develops, we may offer the ability to tailor AutoInvest to particular criteria, for example: only pledging towards projects with certain loan to value percentages.

When my capital and interest are repaid, which account will this go to?

The capital and interest will be returned to the account they came from.

Can I automatically re-invest capital and interest returned from AutoInvest?

Yes, there is the option to turn on the ‘Auto Re-invest’ functionality. When this is turned on, we will automatically re-invest funds that are returned to your account from AutoInvest only when projects are available. You can either choose to reinvest just capital or capital and interest.

Will my funds be used to fill projects which are funding slowly?

No. A proportion of each loan will be allocated to AutoInvest. This may vary on a project by project basis to begin with, depending on uptake, but we will move to a policy whereby there is a dedicated % of each project for AutoInvest funds. The remaining proportion of the loan will be dedicated to manual lenders.