Why do I have to wait 24 hours before signing up to a Circle?

  • The FCA (Financial Conduct Authority) want us to make sure that StepLadder is the exact right product for you.

    We would love to be able to get you signed up straight away, but new regulatory guidelines provided by the FCA mean we must take a day to make sure our product is completely right for you.

    We take financial compliance very seriously at StepLadder and pride ourselves in providing a safe and reliable digital space for our Members to successfully achieve their money goals and beyond. Since we launched StepLadder in 2016, none of our Circles have failed and we have never lost any of our Members' money.

    Hear from some of our Members about their experience raising money with us:

    “My experience has been great because over the last couple of years I have been able to save some money which is aimed towards helping ascend the property ladder.”

    “I am yet to complete my goals but have continued to work on all options available to ensure I secure a home for my family.”

    Gilbert, StepLadder Member

    “There was due diligence when it was time for payment and once I confirmed my identity, my payment came through ASAP. I was dubious in the beginning and started with £25 monthly for 20 months. I will definitely increase soon. Thank you StepLadder.”

    Kerla, StepLadder Member

    “I too had the experience of receiving savings on the last day, however I recently joined a new circle and I was selected for a draw. Step ladder is great for various reasons, savings, money management, financial advise etc.”

    “Trusting a process as such has its pros and cons, but they are very transparent in the message. I'm very fortunate to say I will receive my payment in 3 to 5 working days which is perfect coming up to Christmas. I will always recommend someone because last year I've banked a great sum of money and it came right on time because it was the last draw.”

    Kadion, StepLadder Member

  • The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation fund of last resort for financial firms, sometimes referred to as deposit insurance. StepLadder is not covered by the FSCS because we are a peer-to-peer platform operator, not a savings scheme. If you look at other Peer to Peer lenders you'll see that they are also not covered by the FSCS. We are however an appointed representative of More Lending Solutions Limited which is authorised and regulated by the Financial Conduct Authority (reference number: 702503). You can find us on the FCA register here - Our firm reference number is 783003.

  • In the early days of setting up StepLadder this was one of the questions we were most often asked! But guess what, a) the Financial Conduct Authority do not put Ponzi schemes on their register and if we were we'd have been closed down by now or you'd have read about it in the press!

Your capital is at risk
Please see below some of the relevant risks involved with StepLadder’s Peer-to-Peer model. You should ensure that you read all relevant literature for this product before participating in a Circle.

Credit Risk
Stepladder’s business model is based on Peer to Peer Loans and the repayment of those loans is not a certainty. You may not receive all your capital back.

Liquidity Risk
A peer to peer loan made through our platform is illiquid – you are unable to transfer this to a third
party and you are unable to withdraw from your commitment to continue providing the monthly
amount without StepLadder’s permission.

Borrowing Risk
Once you join a Circle and make the first loan you are committed to that Circle for the period of the
loan. This applies even where you have already been drawn to borrow money. You should consider if you will be able to continue to meet payments under this agreement for the duration.
If you are drawn early and obtain a mortgage you may be in a situation where you are both repaying your mortgage and paying into the Circle on a monthly basis. You must determine if – in the event you are drawn early – you would be able to meet both payments.

No Financial Services Compensation Scheme protection
There is no Financial Services Compensation Scheme (‘FSCS’) protection in relation to the loans
through our platform. Therefore, any losses incurred by the failure of the loans would not be
protected by the FSCS. If StepLadder ceases to exist or goes into liquidation you would not be able to put in a complaint through the FSCS.

Past Performance
Past performance of loan performance is not necessarily a guide to future performance. Past events,the experience derived from these, or assumptions derived from any of these, do not predetermine the future.

Impact of fees
Full details of the fees payable by are set out in our terms and conditions, while these fees are
minimal and only for the administration of the Circle, the consumer should consider how these charges will affect their final deposit amount.

Credit Score
Missed or late payments may have an adverse effect on your credit score.

Platform Risk
If StepLadder ceases to exist or goes into liquidation you may experience delays in receiving your
money or you may not receive this back at all. As stated above there is no FSCS protection in relation to peer to peer loans.

No Guarantee of Mortgage
While the purpose of StepLadder’s business model is to assist consumers to obtain a deposit for a
property sooner than they would have, there is no guarantee that the individual will be offered a
mortgage. If you are drawn early in the Circle you will be borrowing the majority of your deposit and some lenders do not allow a deposit to be borrowed. You should consider this before participating in a Circle.

No Interest or Returns
If you choose to use the services of StepLadder you will not be earning any interest or returns on the capital you lend. While you may receive your deposit funds more quickly than you would have
otherwise, you will miss out on any return that you may have been able to achieve using another investment product.

Regulatory Risk
Peer-to-Peer lending is a relatively new industry and the regulation of the industry could change, this may have an adverse impact on the costs and risk of your investment or result in you incurring
financial loss.

Diversification Risk
Becoming a StepLadder member means engaging in peer-to-peer lending. This could be part of your personal financial planning. It should not be all of your investments.

Portfolio Investment Risk
As with any financial portfolio, we recommend that members spread their risk. We aim for this to be a core feature of StepLadder Circles, in that your fixed monthly contributions are loans to a different member of your Circle each month. Your maximum exposure to any one other member is a single month’s payment.

Is Peer-to-Peer Right For You?
Not all financial products fit your criteria. Carefully if StepLadder is right for you. Before joining a circle, please consider if you have the knowledge you need to understand the proposition and how it can affect your money. We are available by phone, email, and web chat to answer your questions as part of this important process.

Third Party Commission
Although you are not under obligation to use them, some of our trusted partners pay us a commission should you choose to use them.