Why choose us?
Looking for a 1.75% (above BOE base rate) annual return and capital appreciation on your property? Property Pact can make this happen, and offer you more:
- No stamp duty
- No need to set up a limited company
- No mortgage required – invest what you can
- No agency fees
- No solicitors - we deal with them for you
- No refurbishment costs
- No empty lets
- No tenants trashing the property – the occupier will love the house more than you will
- No repairs, renewals or liability
- 1.75% (above BOE base rate) annual return
- Proportionate share of capital appreciation
Property Pact is a crowdfunding P2P platform, offeringfinancial support to fund the deposits of both first and experienced buyers. Investors may choose their borrowers, earn regular income from loan interest, and enjoy their proportionate share of capital appreciation.
Risk warning: this investment may put your capital at risk.
How do we mitigate risks?
We exclusively post prime borrowers on our site, and invite qualifying investors to select to whom they wish to lend. Every potential borrower must satisfy a number of creditworthiness checks, but as with all investing, your capital is still at risk. We outline these risks, and take active steps to mitigate them:
If the borrower refuses to pay...
- Repayment Plan - should the borrower refuse to pay, immediate steps will be taken by the Property Pact customer care team to formulate an amicable repayment plan or short-term payment holiday.
- Individual Loan Agreement/Penalty Interest - should the borrower fail to pay for 3+ months, the investor may excerise the loan document in litigation against the borrower to claim penalty interest at an additional 2% penalty rate, any uplift in value, and all outstanding capital.
- Restriction on Title - the loan will be noted as a restriction on the title deeds at the land registry. This ensures that the property cannot be sold with clear title, unless the loan conditions are satisfied. read more
- The Agreement - the loan agreement is between yourself as a named individual and your selected borrower. The agreement is sufficiently robust for you to litigate against the borrower if necessary.
What makes our borrowers 'top-tier'?
We carefully select our homebuyers to maintain our exclusive pool of top-tier borrowers. This means that every potential borrower must meet our minimum requirements:
- A credit rating of 'Good' or 'Excellent'
- No CCJs (within last 24 months, and for above £300)
- Minimum 12 months continuous employment with same employer, or self-employed for last 12 months and able to evidence income via SA302s or accounts
- Minimum salary of £30,000 per annum (established by P60/6 month payslips)
Property Pact undertakes robust affordability checks on all potential borrowers, who must satisfy affordability committee scrutiny before having their details posted on our website.
Follow our 3 easy steps to start investing:
1. Check your eligibility and register on our site. register
2. Browse areas, borrowers' profiles, and wishlists on your dashboard
3. Pledge your support for 1+ property deals
Key financial notes:
- Registration Fee (annual) - £50
- Arrangement Fee (one-off) - 1% of loan read more
- Exit Fees (one-off)
- Exit administration - £50
- Uplift charge - £5% of uplift
- Maximum loans of £25k per transaction
- Interest paid quarterly at a rate of 1.75% per annum over the Bank of England base rate (net of charges)
- NB: interest rate charges may vary depending on the BOE base rate at the time
- Uplift in value calculated by uplift in each unit (shares divided into 100 units)
How will I earn?
- Interest - borrowers will pay monthly interest on investor loans. Investors will receive interest on their investments each quarter.
- Capital apppreciation - property will be notionally re-valued annually, and any capital appreciation will be recorded on investor accounts. This provides investors with income return and possible capital appreciation at the end of the loan term.
Can I terminate early?
- Readvertising on website - should the investor wish to terminate early, the investment opportunity will be reposted on our website, inviting another investor to replace your loan so that you can have your capital returned.
- Capital appreciation to date - any capital appreciation to date will roll over to the new investor to encourage them to join the market quickly.
- Fees - £50 exit fee
What happens at the end of the loan term?
- Repayment reminders - reminders will start at 12 months before the end of the agreed loan period (sent at 3-month intervals thereafter)
- Extenuating circumstances - Contact us if you feel there may be any issues impacting your ability to fully repay your loan in time
- Capital appreciation - Investors will receive their capital, along with any capital appreciation upon termination of the agreement.
- Remortgaging - borrowers will need to have refinanced the loan, which can be done by reapplying through Property Pact, or via alternative means, such as a remortgage.
- Further advice - we advise consultation with Independent Financial Advisers.
For further information, please contact us via email at email@example.com or call our customer information service on 020 7164 6288.