The House Crowd unveils short-term P2P account
THE House Crowd has launched a short-term peer-to-peer investment account, offering investors access within 30 days.
The account is offering annual interest of four per cent with a minimum investment of £5,000, but there is a catch.
Rather than using borrower repayments, the P2P property platform said the capital can only be withdrawn subject to it being able to crowdfund the loans within the portfolio.
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“It works in a similar way to auto-invest in that funds will be diversified over several P2P loans,” The House Crowd said.
“But rather than keep that money invested for the length of the loan we would launch a crowdfunding campaign following completion of the loan so that the pool of money is recycled quickly, thus providing greater liquidity for investors.
“There should be no need to wait for the repayment date or for properties to be sold as your money should be replaced quickly by crowdfunded money, although please note that this is not guaranteed.”
Withdrawals may also be restricted to £25,000 per investor in any 30-day period if the platform receives numerous simultaneous requests.
The product is separate to The House Crowd’s Innovative Finance ISA (IFISA) which had its minimum investment lowered last month.
Investors can now transfer from £1,000 – instead of £5,000 – into The House Crowd’s IFISA.
All transfers below £5,000 will have a £50 admin fee.