How can I trust StepLadder?
How does StepLadder work?
How do I join StepLadder?
What are the benefits?
Tell me about the home buying process
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.