BridgeCrowd loans are secured by
a mortgage over UK property

Up to 12% average return per annum and you choose the deals

Whilst the loans which BridgeCrowd make are secured against property, your capital is at risk.

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Past performance is not an indicator of future results

Up to 12% annual

returns
VIEW STATISTICS

*Even though BridgeCrowd loans are secured over property, your capital is at risk and you may lose some or all of your money. Your loans are not covered by the Financial Services Compensation Scheme.

returns

We offer loan opportunities where you can earn up to 1% per month (12% per annum). Interest is paid monthly. You choose the loans to enter and the loan period. *Even though BridgeCrowd loans are secured over property, you may lose some or all of your money. Your capital is at risk. You are not covered by the Financial Services Compensation Scheme.

*your capital is at risk

security

We take a 1st or 2nd charge mortgage or position over UK property. All of the properties are valued by a RICS approved chartered surveyor. The surveyors should also have a valid insurance policy that should cover a valuation report if it was negligent.

As a lender, you choose the loans to fund and you earn interest pro rata to your loan amount. The mortgage security is held on trust on behalf of all lenders. Even though BridgeCrowd loans are secured over property, you may lose some or all of your money. Your capital is at risk. You are not covered by the Financial Services Compensation Scheme.

secured

over UK property
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we put our money
where our
mouth
is

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we put our money into every deal

We only ever offer the chance to finance loans that we have personally invested into. BridgeCrowd grew out of a family business. The directors, partners and founding family members have been involved in bridging for 20+ years and as a general and almost invariable rule invest some of their own money into every single deal.*

We can therefore be trusted to take the same precautions with your money as if it was our own.

*subject to personal funds

meet the team

The experienced team have been lending and processing bridging loans for a combined 20+ years and come from a variety of financial and legal backgrounds.

loans underwritten and fully redeemed by team

£68,574,000

MEET THE TEAM

Past performance is not an indicator of future results

0

capital losses

the team have been lending since 2012
VIEW STATISTICS

Past performance is not an indicator of future results

*Even though BridgeCrowd loans are secured over property, you may lose some or all of your money. Your capital is at risk. You are not covered by the Financial Services Compensation Scheme.

view statistics

The team members have processed hundreds of loans and millions of pounds over the last 15 years and never lost any capital. They have developed extensive due diligence processes and procedures as well as paramount fraud prevention systems.

The statistics stated refer to net figures over the last 12 months of trading. Past returns are not necessarily a guide to future returns. The net return shown for each investment is the net return after fees but before any deduction for tax and the return is specific to each loan. Your capital is at risk.

we are proud of what we do

we have new secured loan opportunities available weekly, see some of our live loans below.

VIEW LOAN BOOK

Balnaird Steading, Heights of Inchvannie, Strathpeffer, Rossshire, IV14 9AE

30/04/2016

Balnaird Steading, Heights of Inchvannie, Strathpeffer, Rossshire, IV14 9AE photo

loan value

£42,000.00

LTV

43%


charge

2nd

interest rate p/m

1%

255 Guardwell Crescent, Edinburgh, EH17 7SL

23/11/2016

255 Guardwell Crescent, Edinburgh, EH17 7SL photo

loan value

£208,000.00

LTV

65%


charge

1st

interest rate p/m

0.85%

52 Westfield Road Edgbaston Birmingham B15 3QQ

16/12/2016

52 Westfield Road
Edgbaston
Birmingham
B15 3QQ photo

loan value

£1,234,200.00

LTV

49%


charge

1st

interest rate p/m

1%

(1) Riseley Hall, Dartford, DA4 9JL + (2),(3),(4) .... (12) and x12 Buy To Lets

14/06/2017

(1) Riseley Hall, Dartford, DA4 9JL + (2),(3),(4) .... (12) and  x12 Buy To Lets photo

loan value

£891,103.00

LTV

64%


charge

2nd

interest rate p/m

1%

31 Britton St, London, EC1M 5UH

15/06/2017

31 Britton St, London, EC1M 5UH photo

loan value

£491,629.00

LTV

67%


charge

2nd

interest rate p/m

1%

Land w s.75 planning at Brocketsbrae Road Leshmahagow Lanark ML11 9PT

05/07/2017

Land w s.75 planning at Brocketsbrae Road
Leshmahagow
Lanark
ML11 9PT photo

loan value

£910,000.00

LTV

41%


charge

1st

interest rate p/m

1%

35 Woodlands Road, Middlesex, TW7 6NR

29/09/2017

35 Woodlands Road, Middlesex, TW7 6NR photo

loan value

£329,647.00

LTV

57%


charge

1st

interest rate p/m

0.75%

37 Maxwell Road, West Drayton, Middlesex, UB7 9HW

22/12/2017

37 Maxwell Road, West Drayton, Middlesex, UB7 9HW photo

loan value

£132,000.00

LTV

64%


charge

2nd

interest rate p/m

0.9%

Flat 14 Long Fox Manor 825 Bath Road Brislington Bristol BS4 5RT

18/01/2018

Flat 14 Long Fox Manor
825 Bath Road
Brislington
Bristol
BS4 5RT photo

loan value

£38,200.00

LTV

64%


charge

2nd

interest rate p/m

0.9%

26 Phyllis Avenue, Motspur Park, Surrey, KT3 6JZ

22/01/2018

26 Phyllis Avenue, Motspur Park, Surrey, KT3 6JZ photo

loan value

£44,000.00

LTV

41%


charge

2nd

interest rate p/m

0.7%

LENDER FAQ’s and RISKS

What is our aim?

BridgeCrowd is a growing group of like-minded people and businesses whose aim is to improve their finances through borrowing and lending.

what is a bridging loan?

A bridging loan is typically used to cover shortfalls in funding or finances and it is “secured” against a property. Basically, like a short-term mortgage.

who is a typical borrower? what do we lend against?

The type of borrowers that apply vary and range from property developers looking to renovate, refurbish, develop or buy new properties to business owners looking to improve their business. The one commonality in all of our loans is that the borrowers own a property that we feel comfortable to hold as security until our loan is repaid.

We lend against UK property and land. The majority of our deals are over UK residential properties. We will consider securing over the semi-commercial and commercial securities if the loan to value fits our criteria. Our maximum loan to value is 70% (80% in special circumstances).

security?

We take a 1st or 2nd mortgage or secured loan over UK property. All of the properties are valued by a RICS approved surveyor who have indemnity policies that cover us for a negligent or mis-valuation. Our maximum loan to value is 70%. You choose the deals to fund. The mortgage security is held on trust for you until you are repaid from the sale or refinance of the property.

how do we make money?

BridgeCrowd makes its profit from the spread in interest rate that is charged to borrowers and the rate that it pays to you. For example, a borrower may pay interest at 1.15% per month, of which you may receive 1% per month and BridgeCrowd receives 0.15% per month.
*This is based on our standard “loan spread”.

do you have a secondary market?

Yes, and it is quite active. Please note that whilst the Secondary Market is at present very active, with average sales taking under 24 hours, your ability to sell your loan on the secondary market is subject to other lenders willingness to fund it. Loans that are over term can not be listed on the BridgeCrowd Secondary Market.

underwriting, fraud, valuations...

Risk, underwriting and fraud

The team

The team members have been lending and processing bridging loans for 15+ years and have a combined experience of over 50 years. Our backgrounds range from accountancy, insolvency practice, legal profession (barristers and solicitors) and loan underwriting. Our experience in bridging has taught us what deals to enter into and what deals to turn down. Importantly we know the loan to value criteria for different styles of properties as well as when to allow a loan extension and when to re-possess. We have developed extensive due diligence processes and procedures as well as excellent fraud prevention systems. Notably, we have processed thousands of loans and millions of pounds, and have never lost any capital. meet the team

Valuations and Loan To Value

We always obtain an independent property valuation from one of our paneled or approved RICS surveyors that have passed our due diligence and compliance procedures. We check their experience and the level of their indemnity cover to insure against any negligence or undervalued properties. The valuer will physically visit and inspect the property and provide us with a comprehensive report and photos of the property that we are lending against. This will include details on the local market and evidence of comparable recent sales for the property as well as any other specific requirements that are of importance.

Indemnity

The surveyors also provide an indemnity insurance policy against a negligent valuation. This provides a secondary layer of security. Should the valuation be negligent and should we suffer loss as result of their negligent valuation, then we will pursue the surveyor’s insurance indemnity policy for any economic loss after it has been mitigated.

Solicitors

Our solicitors process over £45million of loans and repayments each month for some of the UK’s largest bridging lenders. Suffice to say, they are collectively regarded as one of the specialist legal teams in the industry for both due diligence and recovery.

Our solicitors undertake additional due diligence on every borrower as well as the property security, title deeds, local searches and borrower's solicitor. Our solicitors draft the loan agreements that have been refined using years of experience as well as registering the legal charge over the security (unless the clients solicitor is registering the charge).

We perform extensive due diligence on the borrower's solicitor, ensuring that they have appropriate indemnity cover and at least three Solicitors Regulation Authority (SRA) approved partners. Every borrower is required to have independent legal advice. Their solicitor must speak to the borrower and explain the loan agreement and the consequences of not repaying the loan. This is done so that the borrower can not state they were unaware of what they were entering into and unsure of the potential consequences if they do not repay the loan. The solicitor also witnesses their signature of the loan and mortgage to ensure that the right borrower signs the contracts.

Borrower’s due diligence

We undertake an extensive variety of far reaching searches on the borrower (and the borrower's solicitor) to ensure that all parties and the statements of the borrower are backed up with evidence. We search credit reference agencies and undertake insolvency searches, courts searches, bankruptcy searches, and PEP sanctions. Additionally, our fraud prevention technology plugs into major credit agencies, and we ensure that every borrower provides identification and documentation that is authenticated to a high a level of security.

Hedge your risk

You have access to multiple loans and as such, you can spread your risk over multiple deals with varying repayment deadlines and interest rates.

what return can I expect and how long are the loans?

This depends on the loan to value (LTV) and type of security. As a guide the following are the current returns paid to investors.

LTV
Under 50%
LTV
50% - 70%
1st charge loans 0.6% per month 0.8% per month
2nd charge loans 0.8% per month 1% per month

what is the risk?

Whilst the loans that the BridgeCrowd make are secured over property, your capital is at risk and you may lose some or all of your money. Your loans are not covered by the Financial Services Compensation Scheme. If the borrower fails to make payments, you may not receive your interest and your capital is at risk and repayments are not guaranteed. You may lose some or all of your money. Past performance is not a reliable indicator of future performance.

There are risks with bridging lending. Below is a list of some of what we believe are the main risks of this type of lending of which you can could lose some or all of your money. This list of risks is not exhaustive.

Risk: The Borrower does not repay the loan

Mitigation: We assess the ability of each Borrower to repay the loan via their “repayment strategy”. The most common repayment strategies are “re-finance” or “sale of the security”. We analyse all exit plans. If the borrower does not repay the loan, we have the ability to repossess the security and sell it in order to recover loan.

Risk: The Borrower does not pay the monthly interest

Mitigation: If the borrower stops paying monthly interest, then you may not receive your monthly interst payment on time. However, you are still owed that money and we can repossess the Security to in order to collect it.

Risk: The market/valuation of the Property may fall.

This means that if the borrower does not repay and we are forced to repossess and sell the property, the property may not be worth as much as the initial valuation or it may be in negative equity and you may not receive all your capital or interest back.

Mitigation: We build in a cushion between the loan amount and the valuation of the property. We look at the value of the relevant property and set the Loan at a level which does not exceed a certain percentage of this value e.g 70% loan to value on certain residential properties. This provides a cushion for a potential down fall in the valuation or property market. Each LTV % varies depending on the asset type and location.

Risk: The Valuation report was negligent or fraudulent

This means that if the borrower does not repay and we are forced to repossess and sell the property, the property may not be worth as much as the initial valuation and you may not receive all your capital or interest back.

Mitigation: We build in a cushion between the loan amount and the valuation of the property. We look at the value of the relevant property and set the Loan at a level which does not exceed a certain percentage of this value e.g 70% loan to value. This provides a cushion for a potential down fall in the valuation. Each LTV % varies depending on the asset type and location. In addition, where a valuation is negligent, and that negligence caused loss, then we can make a claim against the Surveyors valuation policy to recover any capital or interest loss. In order to mitigate valuer fraud, we only use Surveyors that use Royal Institute of Chartered Surveyors (RICS), and that are local to area and, as much as possible, on our valuation panel. *For more information see our Global Lender Provisions.

Risk: A borrower makes it difficult to repossess or sell the property

This means that it may take longer to return to your capital and interest.

Mitigation: We have extensive knowledge of recovering funds and repossessing properties. To date, we have never failed to take possession of a property. The life cycle of a repossession may take a minimum of 3 months, but sometimes on rare occasions, it can take up to 2 years. *For more information on recovery time see our statistics page.

Risk: A Borrower, provide false and/or, misleading information or commits fraud.

Mitigation: We independently verify as much of the information as possible via 3rd parties. For example; if the Borrower states their property is worth £300,000, we would always instruct an independent RICS surveyor, often from our panel, to value the property. If the borrower states that they have a mortgage of £150,000 over the property, we would contact the mortgage company to confirm the level of the mortgage and its current status. The list and checks that we make on each deal are extensive and can not be written here for commercial sensitivities. Please remember that our ultimate safety net is the Security. Therefore, in reality if the borrower commits mortgage fraud, we still have the Security to fall back on to recover the loan capital and or interest.

Risk: A borrower is not who he says he is or commits identity fraud.

Mitigation: We have extensive anti-fraud measures that minimise and reduce the risk of identity fraud. These range from technological checks to ensure that money is paid is to the bank account of the named borrower. We also only send funds to the borrower’s solicitor who undertake to pay the money to the titled borrower. This is so that if the solicitor of the borrower has been duped by identity fraud, then should be liable to us for not paying it to the correct borrower.

Risk: A borrower states that they did not make the loan, or the loan was made under duress or they did not understand the loan

Mitigation: The borrower must receive independent legal advice and their solicitor makes a legal undertaking to us that they have made these checks. The solicitor must speak to the borrower and explain the loan agreement and the consequences of not repaying the loan. This is done so that the borrower can not state they were unaware of what they were entering into and unsure of the potential consequences if they do not repay the loan. The solicitor also witnesses their signature of the loan and mortgage to ensure that the right borrower signs the contracts.

Risk: A borrower contests the validity or regulatory nature of the loan

Mitigation: We seek to ensure that the loans are validity enforced via the respective solicitors and both our solicitors and our underwriting team we have extensive knowledge of the regulatory nature of the lending.

Risk: A solicitors or other advisors of the borrower provide false and/or, misleading information or commits fraud.

Mitigation: A solicitors or other advisors of the borrower provide false and/or, misleading information or commits fraud.

Risk: It is not possible to register the Legal Mortgage at the Land Registry or a solicitor fails in its undertaking to do so or there is a problem with the title to the Property;

Mitigation: Our solicitors make extensive checks on the Title of the Security. For more information see “Underwriting, Fraud and Valuations”. We perform extensive due diligence on the borrower's solicitor, ensuring that they have appropriate indemnity cover and at least three SRA registered partners. If the solicitors provided negligent or misleading information and this caused loss, then we have recourse to the Solicitors indemnity policy.

Risk: Banking fraud or Internal Theft in respect of the client trust account or any cyber-fraud.

Mitigation: We have professional negligence cover the extends to cyber fraud/theft and employee fraud theft.This is subject to the insurance policy TnC’s.

Risk: A PI insurance policy does not pay out or does not extend to the full loss.

Mitigation: We review our processes, procedures and policies regularly. To date we have not had to make a single claim against any our insurance policy nor those of a 3rd party. Past performance is not a reliable indicator of future performance.

Risk: The BridgeCrowd or Social Money become insolvent

Mitigation: BridgeCrowd holds the securities over loans to all borrowers in a trust on behalf of you. Should BridgeCrowd stop trading or become insolvent, then these security interests are ring fenced from the BridgeCrowd insolvency. The liquidator or administrator would be obliged to recognise the trust arrangements and use the property in trust to return capital and interest to the relevant Lenders (and not apply these assets towards BridgeCrowd’s creditors generally).

Risk: Any unforeseen circumstance which may affect the Security (e.g fire or water damage) the Borrower (e.g death or bankruptcy), the Property

Mitigation: We ensure that all our Securities have a valid fire / damage insurance policy. Should the borrower go bankrupt or pass away, then we can still seek to recover the loan capital and interest from the the security.

Risk: Platform failure or technological failure

Mitigation: We make daily back ups of the platform, the site, the loan book and your accounts. This is so that if there was a technological failure, we would be able to re-install the site from the last back up.

Risk: 2nd charge loans

Mitigation: A 2nd charge lender has the same the legal rights as the 1st charge lender and can repossess the Security if the loan is in default. Provided that 1st charge lenders gets paid back first then there is not a lot that they can do to stop that process. Ergo, the only significant difference is that a 1st charge lender would get paid their loan back first. We make extensive checks as to the monetary position of the 1st charge loan, and where practicable we gain the 1st charge lenders consent a deed of postponement so that the first charge lender can not increase their loan amount. We also ensure that Loans are sized in consideration of any prior loans to first in with our Loan To Value cushion. There are many other steps that we check to lend safer via 2nd charge loans. However, due to commercial sensitivities we are not willing to publish our “know-how” online. If you would like more information, please contact us.

The above RISKS are not exhaustive. There could be other risks not stated above or that are unforeseen and beyond our control. Even though we have not lost any capital nor any interest in any of our loans (as of 01/05/19), please remember that by lending, your capital and interest is at risk of loss and it is not guaranteed. Past performance is not an indicator of future performance.

are there any fees?

No, we do not charge lenders any fees for membership or for repaying funds.

what happens if the Borrower defaults under his loan?

The default process varies on each individual loan that we make. Sometimes we may extend the loan and on other occasions we may appoint receivers to re-possess the property and sell it in a timely manner. We always build into our loans the ability for the borrower to extend the term by a further reasonable period. This is especially important in cases where the borrower is selling the property and it is on the market or the borrower is arranging a refinance and we feel that the borrower is likely to achieve this goal within a reasonable time frame. Should the property be on the market for some time and it has not had any firm offers we may ask the borrower to reduce the asking price. Where the borrower refuses to cooperate, we would then consider appointing receivers. The decision of how to manage the loan and whether to allow an extension or appoint receivers rests with BridgeCrowd. We may ask affected investors for their views, but the final decision always rests with us.

what happens if we were to stop trading or become insolvent?

The BridgeCrowd holds the securities and mortgage over the loans to all borrowers in a trust directly on behalf of you. Should BridgeCrowd stop trading or become insolvent, then these security interests are ring fenced from the BridgeCrowd insolvency. The liquidator or administrator would be obliged to recognise the trust arrangements and use the property in trust to return capital and interest to the relevant Lenders pro rata to your loan (and not apply these assets towards BridgeCrowd’s creditors generally).

Are you regulated by the FCA? Are my funds protected under the FSCS?

BridgeCrowd is a trading name of Social Money Limited, a company which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 675283) for credit broking, debt adjusting, debt administration, debt-collecting and debt-counselling activities and consumer buy to let loans. Social Money makes regulated and unregulated loans. However, as a lender, the loans that you make are not regulated by the FCA.
Your loans are not covered by the Financial Services Compensation Scheme.

how does the referrals scheme work?

The referrals and cash-back scheme is where you are referred from one of our partner companies or where you refer friends, clients or colleagues. You will receive a £250 cash-back reward for every referral made. The referral cash back can only be given when the referred investor has invested £5,000 or more into a new loan within 45 days of signing up. This offer is not valid for the secondary markets and for members of your immediate family or the same household.