Investing in Property, Investing in Family?

Charlotte Marsh
Posted by Charlotte Marsh on 30-Jun-2014 16:06:33


As First time buyers continue to struggle to save their deposit to climb onto the property ladder, some of the lucky ones get to call on the “Bank of Mum and Dad”. But other family members are not receiving much interest on their savings so they are also lending to their nieces/nephews or grandchildren.

The more the merrier, Family Crowdfunding, clearly the details need ironing out before you lend to this close network! If the deal isn’t clearly labelled for what it is Christmas and Family parties could get a little awkward.

“The Borrowers/The Kids” sign up for a Two or Three year fixed mortgage with the aim to remortgage once that fixed term is over and from the remortgage they release the deposit raised back to the “Crowd” plus a bit of interest.

Loads to think about before you sign up, especially having various Aunts and Uncles having a percentage in your home, but it’s your family what could possibly go wrong?

Topics: crowdfunding, crowdfunding platform, mortage, property, property ladder, remortage, investing

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Lenders: Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Interest payments are not guaranteed, if the Borrower defaults we offer no assurances that capital can be recovered. Historic returns and loan default rates are not necessarily indicative of future returns and future default rates. ISA eligibility does not guarantee returns or protect you from losses. Lending over the ArchOver platform is not covered by the Financial Services Compensation Scheme. Take two minutes to learn more and please read our P2P Guide .

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