How it works

OnStep works exactly like buying a house on your own, only without the debt and without the hassle.

  1. 1. Research your options

    Check our Key Benefits & Restrictions to ensure that OnStep is right for you.

  2. 2. Get an agreement in principle

    Use our online calculator to find out what you can afford and obtain an agreement in principle.

  3. 3. Find your home

    Find the right property for you and negotiate a cash purchase price.

  4. 4. Apply to OnStep

    Make a full application and, after verifying your details, we will instruct surveyors and solicitors.

  5. 5. We buy the property

    We will set up a new company which will purchase the property, funded by your equity loan, the crowd equity loan and a first charge mortgage.

  6. 6. Make it your home

    Sign the contract, decorate and settle in. Start saving and staircase up as and when you are able to.

How much is your share worth?

You have moved into an OnStep home worth £500,000.

Total purchase cost incl. stamp duty and fees is £520,000.

Your Investment
£25,000
15% share of value
Crowd Equity Loan
£145,000
85% share of value
First charge mortgage
£350,000

If house prices increase

  • Valued at £690,000 after 7 yrs*

    *based on published house price index (HPI) growth in England over 7 years between Apr'13 and Mar'20

  • You have stayed in the home for 7 years and it is now worth £690,000 - an increase of £170,000 on the total investment.

    You will share in the investment gain and will double your original investment. In total, your investment is now worth £50,000.

    Please note that you will only realise your investment when the house is sold or a new tenant replaces you.

If house prices drop

  • Valued at £470,000 after 5 years *

    *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.

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Questions & Answers

  • What type of properties will OnStep buy?

    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.

    See our property criteria

  • What is the eligibility criteria?

    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.

    See our eligibility criteria

  • Who else is funding the purchase of the property?

    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.

  • Who pays for stamp duty and other costs?

    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.

    Learn more

More Buying Questions