CrowdProperty pledges not to increase borrower rates
CrowdProperty has said it is not planning to increase its borrower rates despite recent economic uncertainty.
In a November market update, the peer-to-peer residential development lending platform noted recent economic data from the Office for National Statistics and EY Item Club which indicate an upcoming recession.
Meanwhile, further interest rate hikes are on the horizon to temper soaring inflation, which will put pressure on the housing market.
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CrowdProperty cited the latest Halifax house price index, which recorded a 0.4 per cent decline in house prices in October compared to a 0.1 per cent drop in September, while the annual rate of growth fell to 8.3 per cent from 9.8 per cent.
This is the sharpest decrease in house prices since February 2021.
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“A post-pandemic slowdown was expected, but the impact has been accelerated by recent events such as the mortgage rate increases following the mini-budget, which have encouraged both those with existing mortgages and would-be homebuyers to take pause,” CrowdProperty said in the market update.
Despite the challenging macroeconomic climate, CrowdProperty said it has not increased – and is not going to increase – its rates for residential development finance.
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“Our committed and diverse sources of institutional capital enable us to provide reliable project development finance – all loans are fixed rate, not linked to any other rate, giving certainty of no price increases now or during the loan term as part of our absolute focus on customer success,” the platform said.
CrowdProperty said it works closely with its developers to tackle market, site and situational challenges in partnership.
Despite the economic uncertainty, CrowdProperty noted some bright spots in recent data, including a 0.6 per cent rise in construction output in the last quarter and easing supply chain issues in October.