FINTECH start-up StepLadder has launched a peer-to-peer savings platform which aims to help millennials onto the property ladder.
StepLadder says it is the UK’s first collaborative deposit saving platform, inspired by credit unions and building societies.
With the number of 25-34 year-old property owners now at a low of 37 per cent, StepLadder says its collaborative savings solution could give them a leg up.
Founded by fintech entrepreneur Matthew Addison, it comes to market following a successful pilot in 2018.
The platform groups members in ‘circles’ in which each individual contributes an identical amount of money. This can range from £25 to £1,000 each month. Each member’s contributions are allocated to another member via the platform by random draw each month until all members have received their deposit money. Then each saver enters into a P2P loan agreement and borrows a percentage of funds apart from last member to draw their funds.
StepLadder says that by saving as a group, 87 per cent of its members get their deposit faster than if they were saving alone. It also offer them access to specialist advice and discounts on conveyancers and surveyors.
“We’ve seen decades of rising house prices, but wages haven’t grown in line,” said Addison. “As a result, many prospective first-time buyers have all but given up on the dream of home ownership, believing the costs to be insurmountable and the process inhospitable, StepLadder restores their faith in homeowning, providing a quicker and simpler method to save up for a deposit.
“We are the friend of the first-time buyer and look forward to helping as many people as possible this year and beyond.”