CrowdProperty’s expertly curated projects are always backed by first charge security, offering our lenders the highest security level on their investment.
Read the first of a two-part series on P2PFN featuring our CEO, Mike Bristow, explaining the huge importance of first charge security in the linked article below.
In the first of a two-part series, Mike Bristow, chief executive of CrowdProperty, explains the huge importance of first charge security…
ONE OF the things that defines CrowdProperty is its insistence on always holding first charge security on every one of its property projects. And for chief executive Mike Bristow, it is the only way to significantly reduce risk and deliver the best possible value to investors.
“First charge security is exactly the same as the rights that a mortgage company might have with a mortgage over your own residential home,” says Bristow. “Everyone knows that if they have a mortgage, they are obliged to keep up repayments or the property may be repossessed. And I think that proxy is the best way of articulating what first charge security really means.”
The first legal charge holder is listed on the Land Registry as the primary senior debt holder against that asset, and they are entitled to exercise their legal right to repossess the asset to protect the interests of that first charged secured loan.