About OFF3R

Property investing with BridgeCrowd

Lily Bridgwood
Written by Lily Bridgwood

About BridgeCrowd

BridgeCrowd is a growing group of like-minded people and businesses whose aim is to improve their finances through borrowing and lending between each other. By bypassing banks and connecting through technology real people make real decisions about bridging loans and benefit from better than market rates all secured over UK property.

BridgeCrowd provides loans secured over UK property by a 1st or 2nd charge registered at the Land Registry. This provides a significant level of security for your investment as, in the worst case, the loan can be recovered by enforcing the sale of the property.

BridgeCrowd Q&A

What is a Bridging Loan?

A bridging loan is typically used to cover shortfalls in funding or finances. It is secured against property – basically, like a short term mortgage.

What do BridgeCrowd Lend Against? 

BridgeCrowd lend against UK property and land. The majority of their deals are over UK residential properties. They will consider securing over the semi-commercial and commercial securities if the loan to value fits are criteria. Their maximum loan to value is 70%.

What Returns Can a BridgeCrowd Investor Expect? 

The average interest paid to investors is 1% per month (12.68% annually). Capital At Risk. Interest is paid monthly. The average loan term is 6 months and our maximum loan term is 12 months.

Historic Returns (as of January 2016)

Why BridgeCrowd?

BridgeCrowd operate under 3 tiered safety rules:

1. Equity/Loan to Value

They underwrite their deals with a view that the loan to value (LTV) has enough equity in the security to cover the loan amount plus interest plus any fees that relate to collection of the loan.

2. Security

Investment is secured by a registered charge over UK property (like a short-term mortgage). It is this security that is the most important consideration when lending money. Many other peer-to-peer lending platforms and investments do not offer a registered security as protection. They do and investors are assigned part of this loan security.

3. Repayment

BridgeCrowd ensure that every deal has at least one clearly defined exit plan for the borrower. This is usually the sale of a property within the loan period or the re-finance of a property on a traditional mortgage or the repayment of the loan from a business venture. Often they insist on a second exit plan as well.

They do not charge investors any fees for membership or withdrawing funds and will not charge investors any fees, ever!

To date they have not lost any capital, however previous historical performance is not a reliable indicator of future performance. Any investment carries risk and the value of the security can go up as well down. For example, if the property market collapses loan to values will be closer to 90% / 100%. A good investment strategy would be to spread your funds out over a few deals to limit your exposure to any particular property.

Investor Reward

BridgeCrowd are currently rewarding OFF3R users that register with their platform and invest £5000 or more a £250 cashback reward.

Please visit BridgeCrowd to view all their latest opportunities. Your Capital is At Risk. 

About the author

Lily Bridgwood

Lily Bridgwood

Lily is the Partnerships Associate at OFF3R. She has previous work experience in both the corporate and start-up environments. She joined the OFF3R team in October having recently graduated with First-Class Honours in International Business from the University of Edinburgh.