Žltý melón launches p2p investment in secured loans to finance mortgage deposits and help homebuyers
Invest in secure loans to finance mortgage deposits with high returns
Limited time bonus offer of extra 1% return on Cash-Free Hypo loans
- Average net earnings on the platform exceed 8% p.a. since 2012
The p2p lending platform, Žltý melón, has announced the availability of a new investment product, which will allow investors to lend money to homebuyers and help them finance the mortgage deposit required for the puchase of a new home.
Žltý melón was created by its parent company iService a.s. in 2012 and has helped facilitate over 7 million EUR in lending to borrowers in the Czech Republic and Slovakia, connecting them with individual investors from across the EU.
The new CashFree Hypo loan is available to anyone that has been approved for a standard mortgage by a bank in Slovakia. Homebuyers can borrow up to 35,000 EUR with an interest rate of between 4.9 and 5.9% APR to finance their deposit. This helps remove the barrier to home ownership faced by many people who cannot afford the deposit required by their bank, which is typically 15-25% of the total purchase price.
Investment in these loans is both secure and profitable, as they are offered by Žltý melón in partnership with several leading real estate developers as well as Gepard Finance, which specialises in mortgage lending in Slovakia.
This model helps ensure loans are only approved for verified borrowers that are able to repay, while the loans themselves are also secured by a charge against the property itself. Also, for a limited time Žltý melón is providing investors with a bonus offer on all investments, increasing their maximum return to 6.9% p.a.
Žltý melón is launching this new real estate investment product after the success of its Cash Free Housing loans, which are also provided in partnership with several well established real estate developer in Slovakia and help people finance the first downpayment on a new build home or flat.
Investment in these loans offers returns of up to 5.9% for investors and has proven particularly popular due to additional security of the buyback guaratee provided by the real estate developer. To date there have not been any defaults on these Cash Free Housing loans.
The new Cash-Free Hypo loans are directly funded by individuals from across the EU, via the Žltý melón p2p lending platform. Interest in these loans is expected to be very high due to the high returns offered to investors as well as the additional security of these loans provided by the mortgage charge against the property.
Roman Feranec, CEO of Žltý melón explained why the company was launching this new product. “Almost three years ago we launched our CashFree Housing loans, in cooperation with several major Slovak developers, that help people finance the deposit required for the purchase of a new home or flat. This product has been incredibly well received, both by borrowers and investors, and so we have been looking for other opportunities to offer innovative forms of real estate finance.”
“These investments offer investors high returns as well as a high level of security. The failure of banks to provide new and innovative forms of real estate finance, now that 100% mortgages are no longer available provided the perfect opportunity for us to offer consumers a better product and help them het on the housing ladder.”
About: Žltý melón is the first provider of p2p loans in Slovakia, which began operations in October 2012. It helps connect people who want to borrow money with people who want to invest, facilitating over 7 million EUR in lending since 2012. People can borrow from just 4.9% p.a., while investors have earned average annual net returns of over 8% p.a. since the platform was launched. Žltý melón is supported by the European Investment Fund as an equity investor through the JEREMIE initiative, which invests in innovative startups across the EU.
Press Contact: Jos Henson T: +421 2 544 100 84 E: [email protected]