We were recently asked some good questions by a new Crowdahouse Member which I thought would be useful to share with you here. Although detailed answers can be found in our FAQs, we realise that you may not have the time to read through them all. So here are your fellow Member’s questions and my answers.
How safe are the Crowdahouse Borrowers?
The Borrower must be a limited company or High Net Worth Individual (HNWI), and provide a property as security in the form of a first charge. The Borrower must also provide answers to a lengthy application form, after which all the information is thoroughly checked by us and the solicitors representing the crowd of Lenders. We turn down all projects that do not meet our strict requirements or that we regard as risky and unsuitable for our Members. And in the unlikely event that the Borrower misses a payment or defaults on the loan, then our proprietary Lenders’ protection system called Crowdasafe™ steps in to administer the property on behalf of you and your fellow Lenders. Any property income is diverted to pay your interest, or if necessary the property will be sold on your behalf to recover your money and any costs.