Peer to peer property lender CrowdProperty has unveiled a new lending product specially for new construction methods. According to P2PFinanceNews, the lending platform is offering a new product, Modern Methods of Construction (MMC) Finance, which will cover building with alternative materials including modular, structural insulated panel products and insulated concrete form (ICF). While sharing more details about the lending product, Mike Bristow, CEO and Co-Founder of CrowdProperty, stated:
“At a time when housing undersupply is so chronic and sustainable construction is ever-more important, we embrace funding innovative forms of construction. While modular structures and ICF are not new approaches, they are relatively novel in many respects when compared to more traditional construction approaches. MMC will play a huge part in the future of housing delivery, proved by the likes of Goldman Sachs investing heavily in the sector.”
Bristow then noted that traditional lenders tend to avoid lending for these type products and CrowdProperty is looking to serve the construction market better. He added:
“Furthermore, we have supported a growing market for joint venture structures for some time and now have the first dedicated product in the market.”
The new product comes just a little over six months after CrowdProperty secured £1,098,832 though its equity crowdfunding campaign on Seedrs. CrowdPropert describes itself as a platform that promotes investments that return up to 8% per annum noting that, to date, the investment platform has not experienced any loss of capital for its investors. The lender also offers an IFISA providing tax-free returns and for borrowers, CrowdProperty offers short term loans at a current rate of 0.62% to 0.88% for credit from £100,000 to over £5 million.