CrowdProperty adjusts rates to offer lower LTV loans
CROWDPROPERTY has launched a range of projects offering lower rates than usual for investors in return for higher levels of security.
The peer-to-peer property lending platform typically offers rates of around eight per cent but is set to list two projects with returns of closer to seven per cent.
Mike Bristow (pictured), chief executive of CrowdProperty, said this change was due to a lower loan-to-value being taken on two projects and the borrowers paying lower rates.
He said the lower loan rate made it easier to attract borrowers and would help keep projects coming on the platform.
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“To serve ever-stronger demand from our valued lenders, we’ve made our borrower rates even more competitive for the very highest quality projects with the highest levels of security cover,” Bristow said.
“This means CrowdProperty can now secure even more projects which comfortably meet our meticulous due diligence criteria, in turn giving you, more investment opportunities.”
He said this change meant lender rates would be adjusted to reflect lower LTVs taken on higher-quality projects, but he added the returns would always beat inflation.
It comes as the platform aims to cope with demand from lenders amid concerns of projects getting funded too quickly.
“Maintaining a competitive proposition on the borrower side is very important for attracting and securing high quality lending opportunities and this change will ensure we can further increase the number of highly secured projects on the CrowdProperty platform,” he added.