For anyone wanting to know what a peer-to-peer lending mortgage is, then in its simplest terms it’s a way to obtain finance from a group of people.
Over the past 10 years there has been a huge growth in peer-to-peer, or P2P as it is often called, lending which enables a borrower to source finance from a group of individual lenders without having to apply for a loan from a bank.
The trend has also seen peer-to-peer mortgages take off so someone looking to buy a house, or other property, they may decide not to approach a building society or bank but a peer-to-peer lending platform instead.
These mortgages aren’t just for the purchasing of a new property but also for remortgaging purposes as well.
The process for obtaining a peer-to-peer loan UK is straightforward with the borrower having to fill in an online application form with the loan amounts and interest rate payable already known.
Interest rates for peer-to-peer mortgages and bridging loans rates
Indeed, the interest rates for peer-to-peer mortgages work in much the same way as they do for bridging loans rates and will vary according to the borrower’s own circumstances, the property being purchased and how much the borrower is committing to the purchase or the value of the security for the loan.
It should also be appreciated that the interest rates being charged are often lower than those from a traditional lender and there are also lower service fees as well. Peer-to-peer lenders also have different lending criteria and may approve a loan to someone with a low credit score.
Another big attraction for this type of mortgage borrowing is that the application process is much quicker with many mortgages being forwarded in less than 30 days. Some applications may take a lot longer, depending on how much checking the lender must undertake.
Biggest demand is for peer-to-peer loans UK
While the market is expanding quickly, the biggest demand is for peer-to-peer loans UK which is a well-established presence in the market and the number of these loan providers is growing.
This means that for potential borrowers it easier to compare the offering between one peer-to-peer mortgage lender and another and also with conventional lenders to see which is offering the best deal that meets their needs.
For more information about peer-to-peer lending mortgages and how effective they can be, contact The Bridge Crowd.