OnStep works exactly like buying a house on your own, only without the debt and without the hassle.
*based on the maximum drop in England HPI over any 5 year period (Jul'08 to Jun'13) for which data is published.
You wish to move home after five years, but your home is now worth only £470,000 – an investment loss of £50,000.
You will share £7,350 of the loss and your investment will now be worth £17,650.
By comparison, if you had a mortgage from a bank you would be in negative equity - that is you will owe more to the bank than you will get from selling the house.
We will consider most mainstream residential properties as long as they are not too expensive or too small and are mortgageable by a high street lender. We will not invest in properties that exceed £600,000 in value, are priced at over £800 per sq. ft, or are smaller than 450 sq. ft.
You will need to have a joint income of £40,000 or more per annum to qualify. Typically you should have a good credit history and are able to afford the rental payments comfortably, after accounting for all living costs and other commitments.
The property is crowd-funded by peer-to-peer lenders on the OnStep platform together with your investment.
For lenders, this is an ethical way to invest in property - they receive buy-to-let investment returns but also help you get onto the housing ladder.
All normal purchasing costs are shared fairly between you and the crowd equity lenders in proportion to your funding.
This includes stamp duty land tax, valuation and building survey, conveyancing fees, local searches, and the OnStep product fee.