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Richard

Crowdsourced Mortgages

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I'm doing some due diligence on a start-up investment opportunity that has been pitched to me and which is looking to attract funding from www.seedrs.com

In the course of browsing some SEEDRS listings I saw this:

http://www.crowdmortgage.co.uk/

And here's one that's over-funded on SEEDRS: http://www.landbay.co.uk/

Could be interesting.

I have absolutely no association with any of these entities.

Richard

Edited by Richard

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Must be right at the top of the Ponzi if they are inviting in private money to be lots on mortgage defaults.

"Calculation based on 5% APR "

Who is going to borrow at 5%

Why do the only lend to BTL and commercial? (It's easier to repo them?)

Why borrow money at 5% when Carney & Co will under cut them?

Nice idea and they are not the first to think of it, but possibly the first to follow it through. The problem is you are competing with the money printers who can borrow at 0.5%!

In a non-rigged economy this idea would be great as it cuts out the banks, but when the centeral bank is lending at 0.5% undercutting savers then I see no demand for this product except for Wonga type customers who the money changes won't lend to because it's too risky.

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In the course of browsing some SEEDRS listings I saw this:

I don't get it. We know the majority here always say the lenders are to blame for allowing borrowers to take mortgages to pay high prices for house.

Even for people taking big mortgages out to buy property next month... lenders to blame and borrowers innocent for they just wanted a home, no matter what the high price. The borrower somehow not got individual responsibility for what they're prepared to borrow and price they're prepared to pay, even when outbidding others in the market.

How are Winkie and Wonderpup and others going to explain this away? The money for lending/investing/mortgages for property, at high prices, coming directly from society itself via crowdsourcing. The 2nd one also does BTL lending from the crowdsource funding.

I bet it will be banks again to blame, as the crowdsourcer investors were right in searching out higher yielding investments... even where they fuel more borrowing for housing. Seeing as the borrowers have only been enjoying even more HPI to push housing values to new peaks in many areas, since 2009, not sure why non-owners still persist in calling borrowers of recent years victims, when they're sat on equity, and outright owners seen houses go up even more in value.

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This is very interesting, but I am quite confused about the mechanics.

The reason they only arrange BTL and commercial products is that home mortgages are financially regulated products, whereas the latter are not. Therefore FCA regulated mortgages cannot be issued.

I wonder how action would be taken against defaulted borrowers.

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