JustUs increases interest rates for investors
JustUs has increased the interest rates paid to investors by 1.5 per cent, following a week-long consultation.
Property loan borrowers will pay an additional two per cent of interest per annum, of which 0.5 per cent will be paid to the JustUs platform to cover operational costs, while the remaining 1.5 per cent will be returned to investors.
The rate rise will only impact new loans for property developers.
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The interest rate decision was made after a week of discussions at the peer-to-peer lending platform regarding the perceived risks in the economy.
The review looked particularly at the property development sector, including the rising value of homes and the cost of building supplies.
“The JustUs property developers we work with are experiencing substantial improvements in property prices, which they recognise shall lead to an increase in their build costs and associated finance,” said Lee Birkett (pictured), chief executive of JustUs, in an email to investors.
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“Right now, they are continuing to forecast a very healthy profit margin.”
The increased investor rates will take effect from today for new loans funded, while all existing loans will continue to be administered as per the originally contracted terms.
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