Property Crowd Fair Pricing Policy

We earn our fees from third parties including the bond issuers. These fees are not charged to bondholders themselves. To ensure that the fees we earn allow a bond yield to be offered to investors which is consistent with our perceived underlying loan risk, we operate the following charging structure as part of our Fair Pricing Policy:

1. Prior to any consideration of fees, the bond issue must be priced to fairly reflect the risk of the underlying loan. This involves a comprehensive analysis of the attributes of the underlying loan, including without limitation the return on the underlying loan itself, its term, the general market climate, the comparable performance of the asset class/sector, the exit risk, the LTV/LTGDV exposures and capital structure (senior/mezz), and several other (commercial and legal) factors. After we perform our credit risk assessment, we will consider whether the rate to investors reflects a fair risk-reward balance. This means that viable transactions that are at the margins of our tolerance may attract lower fees in order to maintain sufficient returns for investors. Conversely, we may charge higher fees on transactions provided investors will be left with a return that still correlates with the risks.
2. Subject to [1]: Securitisation fee will be charged to the bond issuer: this is a flat fee of £10,000 maximum.
3. Subject to [1] and [2]: Placement fee will be charged to the bond issuer: in consideration of us facilitating the placement, reporting to investors, and ultimately coordinating redemption of bonds on Property Crowd, we charge each bond issuer a placement fee in the range of 0% to 5% (5% being the maximum) of the bond raise.
4. Finally, and always contingent on full and final repayment to bondholders, a Closing fee may be charged to the bond issuer: this equals any surplus cash within the bond issuer vehicle following the redemption of the bonds.

Please note that these fees are separate from the ISA account and transfer fees which we charge ISA investors to cover the costs of operating and administering bondholders’ Property Crowd IFISAs pursuant to our Property Crowd IFISA Terms & Conditions.