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Forget Mum and Dad - now first time buyers can crowdfund deposits

An online platform has been launched with the aim of allowing first time buyers to seek crowdfunding to raise enough cash to buy a home. 

Property Pact has just won approval from the Financial Conduct Authority and is seeking FTBs who are happy to use peer-to-peer crowdfunding to raise a deposit. 

"There are mechanisms such as the government's Help To Buy scheme available to some, at least for now [but] we have also been acutely aware of the restrictions the scheme has, for example in restricting buyers to new-build properties" explains Errol Woodhouse, chief executive of Property Pact. 

"We are also conscious of the burden faced by parents, relatives and friends of young purchasers to help out financially without any security around repayment, and are sure that our platform will also provide them with a formalised way in which to help.”

Property Pact, in its own words, "allows prospective home buyers to borrow money to help fund the gap between their existing deposit and the 'amount the bank want them to have' so that they can offer them a mortgage."

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