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SPECIALIST PROPERTY PEER-TO-PEER LENDER LAUNCHES INNOVATIVE FINANCE ISA (IFISA) TODAY
Today, 23rd February 2018, specialist property peer-to-peer lender, CrowdProperty launched its Innovative Finance ISA (IFISA). The tax-free product will be open initially to existing registered lenders who will be able to take advantage of this year’s ISA allowance of up to £20k and transfer existing ISA funds into the CrowdProperty ISA without affecting their allowance. Lenders will still select the projects they wish to lend to from their CrowdProperty ISA.
Pre-registration opened on Sunday 18th February and has proven multi-million pound demand for the new CrowdProperty product. CrowdProperty is waiving all setup and administration fees on all ISA funds placed into an account opened this tax year, into perpetuity. With a very strong pipeline of property projects in which to invest the IFISA money, CrowdProperty hopes to offer non-registered lenders the product before the end of the current tax year.
CrowdProperty offers their lenders 8% on all loans to professional property businesses (which will be tax free under the IFISA wrapper). CrowdProperty protects lender funds by insisting on first charge security on all loans (just like the security and rights that a mortgage company holds), has a 100% payback record and is fully authorised and regulated by the FCA.
Simon Zutshi, Founder and CEO of CrowdProperty says that CrowdProperty can offer its lenders strong interest rates on their money because of its cost structure advantage and performance: “CrowdProperty does not have the overheads of a conventional bank, so we can pass that benefit on to our lenders. We are a pure peer to peer lender and pride ourselves on getting our retail lenders strong, secured returns, which can now be tax-free. Our lenders can still select which projects to lend against from within their CrowdProperty ISA, giving them control over their lending.
“Most importantly though, our team of experts undertake rigorous due diligence on all property developments and developers before listing them and, once projects are financed, we carefully and formally monitor their progress, which has meant CrowdProperty has achieved an impressive 100% pay back to its lenders.
“We are very excited to offer our lenders the opportunity to earn more on their money through our ISA tax wrapper, which makes our offer even better, especially given our insistence on 1st legal charge security which is the same security that a bank has on a mortgage. That means that if a borrower defaulted we would be able to repossess the asset and then, unlike other banks, our property expertise would decide on the best course of action to protect our lenders funds and interest – whether to take charge of finishing the development or sell the project in a more strategic way than how a bank might dispose of it.”
Founded in 2013, CrowdProperty (www.crowdproperty.com) has been responsible for over £12m of development project finance loans between private individuals and UK professional property businesses with a database of over 6,000 registered users. CrowdProperty has unique proprietary access to the largest property network in the UK, the Property Investors Network (pin) which provides competitive advantage in terms of high quality deal origination and has enabled the proof of the business with limited marketing investment to date. CrowdProperty is now funding at speed – the latest project funding £250,000 in 15 minutes.
CrowdProperty offers retail lenders:
· 8%* per annum interest (tax-free if form the CrowdProperty ISA)
· 100% payback record
· Just like a mortgage company, we can repossess on behalf of the Crowd should the Borrower default on the loan - we hold the '1st legal charge' to protect you
· FCA regulated and authorised
· Short loans of 6 to 18 months in length
· Minimum loan size of just £500
· Lend tax-free with a CrowdProperty ISA
· Lending from a pension
CrowdProperty offers property professionals:
· 80+ years of property expertise
· Access to decision makers
· Quick decisions
· Loans from £200k
· Up to 100% loan to cost, depending on the project
· No hidden fees
For further information, please contact:
Mike Bristow, CrowdProperty
0121 228 2223
Notes to Editors:
All loans are secured by a registered legal charge against property in the UK.
CrowdProperty Ltd is a company registered in England, with its registered office at Crown House, 123 Hagley Rd, Birmingham, B16 8LD (Company No. 08764786).