CrowdProperty raises investor rates
CrowdProperty has increased the interest rates on its first-charge secured development projects.
The peer-to-peer property lender said it has upped its rates of return for investors after the Bank of England pushed the base rate up last week to 4.5 per cent.
It is the second rate hike from the platform so far this year.
CrowdProperty is now offering investors rates of between eight and nine per cent on its new development facilities and follow on raises for existing project facilities.
Read more: CrowdProperty reports strong growth despite economic climate
As of May 2023, the platform said, the average CrowdProperty investor is diversified across 76 first-charge secured projects with an average return of 8.03 per cent – above the 7.72 per cent average contract rate on these loans.
“We raised investor rates in January and have taken the decision to do so again as part of our continual assessment of a range market factors,” Mike Bristow (pictured), chief executive of CrowdProperty, said.
“We’ve now paid back £187m to investors and continue to attract high-quality projects to meet platform demand.
“An increasing number of investors are adopting our auto-invest and auto- reinvest tools to easily deploy, diversify and reinvest funds in these opportunities, including via both Innovative Finance ISA and pension tax-efficient routes.”
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