Minimum requirements for borrowers:
We carefully select our homebuyers to maintain an exclusive pool of top-tier borrowers. Every potential borrower must meet our minimum requirements:
- 'Good' or 'Excellent' credit rating
- No CCJs (within last 24 months, and for above £300)
- Minimum 12 months continuous employment with same employer, or self-employed for last 12 months and able to evidence income via SA302s or accounts.
- Minimum salary of £30,000 per annum (established by P60/6 month payslips)
- 5% of the deposit
Follow our 8-step guide to buy now:
- Register on our site - register
- Fees - £50 one-off payment (covers credit checks and vetting by our team)
2. Create your profile. Tell investors why they should invest in you.
3. Verify your profile.
4. Go live!
5. Browse and add properties to your wishlist
6. Communicate with investors on our platform and wait for offers.
7. Accept an offer. Loan funds will be sent to reputable solicitors allocated by us.
8. Sign the contract and get your individual loan agreement.
- Fees - 1% of loan for loan arrangement read more
- Max loan term is 5 years at 2.25% above the Bank of England base rate (variable).
- Increase in property value will result in a percentage being paid to your investors upon full repayment.
- No repayment schedules
- Other fees and charges may apply, and interest rates may increase in the future.
- Monthly interest payments to Property Pact must be declared as outogings when applying for a mortgage.
- A restriction will be registered on your property at the Land Registry read more
This is a shared equity scheme.
What is 'Loan-to-value' (LTV)?
- Ratio of your loan to the value of the property, which helps banks judge the risk of providing you with a mortgage.
What happens at the end of the loan term?
- Repayment reminders - reminders will start at 12 months before the end of the agreed loan period (sent at 3-month intervals thereafter)
- Extenuating circumstances - Contact us if you feel there may be any issues impacting your ability to fully repay your loan in time
- Capital appreciation - Investors will receive their capital, along with their share of capital appreciation upon termination of the agreement.
- Remortgaging - borrowers will need to have refinanced the loan, which can be done by reapplying through Property Pact, or via alternative means, such as a remortgage.
- Further advice - we advise consultation with Independent Financial Advisers.
What happens if I fail to pay?
Borrowers should be reminded that any potential legal action could ultimately lead to the loss of their property, or even bankruptcy. Both parties should be aware of the following:
- Individual loan agreements - may be used by investors to take legal action against their borrowers if necessary.
- Restriction on title - Debt will be noted on the title deed of the property, and will need to be cleared before the property can be sold or from the proceeds of the sale.
Property Pact has endeavoured to provide the fullest relevant information on this website. If your questions have not been answered in our FAQs or Risk Warnings & Mitigation pages, please email us at firstname.lastname@example.org or call our customer service hotline at 02071646288.