A NEW property lender has launched, connecting retail investors with professional real estate developers.
Credit Peers, which defines itself as an online “peer to business” lending platform, allows individuals to lend from £500 upwards to fund property deals. Its borrowers are professional property investors and developers who must invest a minimum of 15 per cent of the property value using their own equity.
Investors can either select a specific property or use the auto-match function, which allows them to select a set of criteria and matches them to loans accordingly. All loans are secured against property.
The platform was launched by a team of five property financing experts, some of whom have previously held roles at investment banks Credit Suisse and Goldman Sachs.
Credit Peers has appointed representative status under Resolution Compliance, which is fully authorised by the Financial Conduct Authority. This means that Credit Peers is effectively operating under Resolution Compliance’s regulatory umbrella, enabling it to accept retail investors. Peer-to-peer lender Growth Street also has AR status with Resolution Compliance.
Credit Peers commissioned research which found that 59 per cent of consumers trust their bank less than they did a year ago. The survey of 1,000 people found that property was the most attractive investment (65 per cent), followed by stocks and shares (33 per cent) and commodities (33 per cent).
“The current economic environment of low interest rates, volatile stock markets and high house prices offers very little to the average consumer looking to make a better return on their money,” said Torsten Hartmann, chief executive of Credit Peers.
“Add to this the current distrust of traditional investment vehicles, and the situation is bleak. We are setting out to revolutionise and democratise property financing by focusing on quality, speed, control and transparency.
“In the context of the uncertainty created by Brexit and the US election, we are confident in both the property and alternative finance markets. We want to allow everyone to benefit from the ongoing growth within the sector by helping them to lend funds against tangible assets that they can see, touch and feel.”
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