Individual(s) Issuing A Mortgage ?

Annisele

spyrogyra wrote: »

And the very next question is - is taking charge over a property as a save option for the lender as a mortgage loan ?

I don't understand that question. If you take a charge over the property, you've created a mortgage - that's what a mortgage is. And if it's a first charge, and satisfies the other conditions here, it'll be a regulated mortgage.

Dave_Ham

Its technically starting a private equity company. Issue is that you can lend to businesses and secure a first charge on a property, pretty much bulletproof.

Try and go to a person and you run the risk of the person saying that you are not a bank and that you do not have appropriate status; Consumer Credit License and Bank License and therefore the charge can be thrown out.

Not saying it cannot be done, its just not as easy as all chucking in £100k and busting up the £1,200 rent each month.

It can be done, although not sure scaleable and therefore one default from the tenant and you are in the .... as you cannot simply throw them out.

Add in rent to own is soon to be outlawed (if not already) and it makes this cost prohibitive for me.

The fact that it works in the States is never enough reassurance for me...

All the best though

spyrogyra

Thank you to all who took time to comment.

As it might transpires, my idea is to get opinions what’s the best route to constitute P2P mortgage lending model, intended to take off as a small project and growing with time. No appetite for anything bigger than that. I know many of the pitfalls – regulated activity, Consumer Credit License, propped house prices, relatively low interest mortgage rates and all the difficulties to settle something even remotely different from the mainstream. I know it might take me good 2-3 years, as I’ve just started CeMAP training.
It would be fair to mention why I think it could be a successful model in the long run.
I doubt confidence in banks/markets will recover soon. Plenty of people are wondering how to invest securely. Let’s face it – a house is a house, and many people feel comfortable investing in residential property. And time will push interest rates in line with economic realities restoring justice for savers.
I suggest that those interested in commenting my idea would take a positive approach and dissect each and every aspect of it in a creative way. That would help me do something like a road map, get aware of possible pitfalls that currently I might not see, fast-track educate myself, and not only me but everyone following the discussion. Actually it such a discussion new ideas might evolve and frankly, it looks like it might outline many of the problems the current mortgage model.