Frequently Asked Questions
Top 6 questions asked
For more detail, please scroll down.
What happens if I want to drop out?
You can drop out any time prior to purchasing your house and receive your money back at the end of the circle, or sooner if we can arrange it.
What if someone else stops making payments?
It’s Stepladder’s problem, not yours. We have financial measures in place that makes sure draws continue for everyone else uninterrupted.
What is StepLadder’s regulated status?
We are an appointed representative of More Lending Solutions which is Authorised and regulated by the Financial Conduct Authority for P2P, you can find us on the FCA register our reference number is 783003.
What happens if I’m not ready to buy a house?
Your money is held in escrow free of charge until you are ready.
How are property deposits allocated?
Through random lottery. Everyone has an equal chance.
How does StepLadder make money?
Whilst we do charge you a monthly fee, this is not for profit. Where we make our money is by introducing you to mortgage lenders and service providers (e.g. solicitors, insurance providers) who pay us a fee if you chose to use their services when purchasing your home.
What could my mortgage payment be?
The friendly guys at the Money Advice Service provide this great calculator to help you think about the deposit you might need and how that will affect the monthly repayments you’d have to make on your mortgage.
*Please be aware that if you use Stepladder and are drawn early, you may need to repay both your monthly mortgage payment as well as continuing to make payments into the circle.
The StepLadder Concept
The facts and figures of StepLadder
The StepLadder community
Terms and definitions
Host – Your circle host is your main point of contact during your StepLadder participation. Your host is available by phone, email, and in person to help guide you successfully through your experience with StepLadder. StepLadder and its hosts are not authorised by the FCA to give regulated mortgage advice, but we can introduce members to carefully selected, FCA authorised regulated mortgage advisers, whom we believe offer our members excellent prices and service.
Circle – A group of Members with matching characteristics, including the same desired property deposit and the same fixed monthly contribution amount. A circle’s Members don’t change once the circle has started. A circle’s Members all lend to and borrow from each other for the fixed term of the circle.
Administration Fee – between 3- 5 % depending on circle size to cover the cost of circle administration and service delivery
Fixed term of circle – Each circle is in existence for a fixed period of time, which is known to all the circle’s Members at the joining stage. During the circle’s fixed term, the Members of a circle lend to and borrow from each other. At the end of the circle’s fixed term, all the Members have repaid their loans to each other and each Member has received the property deposit once.
FCA – Financial Conduct Authority
P2P – P2P is an abbreviation of “peer-to-peer”. Peer-to-peer lending is when individuals lend to and borrow from each other directly. StepLadder is an example of peer-to-peer lending.
Property Deposit – The amount that each Member will receive once during his or her circle’s fixed terms. This is the same amount as the sum total of that Member’s fixed monthly contributions.
Fixed monthly contribution – The amount that each Member pays into the circle each month. The total amount of fixed monthly contributions paid by each Member of a circle is equal to the property deposit that is credited to Members of that circle every month.
Random allocation algorithm – The randomised system that chooses which Member is credited the property deposit each month.
Circle insurance – Insurance that makes sure that you are not affected if any other Members of your circle don’t keep up their fixed monthly contributions.
Member – a participant in a particular circle.