OnStep will operate a sophisticated secondary market with a limit order system. You will be able to place transaction orders with price limits or otherwise choose to hit existing offers for immediate execution.
- The shared equity loan will be broken up into £100 loan parts and the loan parts will be funded by multiple lenders.
- Each lender can then list their loans for sale on OnStep’s marketplace. They can do so at a price of their choice, which may be more or less than the original price of the loan (£100).
- New lenders can either choose to purchase such loan parts (at prices listed by existing lenders) or they can make their own offers to purchase at a different price.
- This secondary marketplace will be operated as a ‘limit order’ system, where buyers and sellers place an order for transaction with a price limit.
- For sellers, the price limit represents the minimum price at which they are willing to sell and for buyers it represents the maximum price at which they are willing to buy.