JustUs plans to disrupt the lending landscape and become a provider of crowdfunded financial products for consumers with the JustUs ISA. To undertake Peoples Mortgages JustUs will be required to gain regulatory approval which is not guaranteed. They return to Crowdcube to fuel the next stage of their growth.
We think there are too many difficulties in obtaining finance, with one report claiming that 80% of applications for credit were being declined. Lenders appear to be taking a more cautious approach to offering loans and mortgages, particularly as many borrowers are likey to face uncertainty regarding job security and their income, with potential for a rise in the number of borrowers defaulting on repayments.
We believe savers have been let down by the mainstream banks at a time when savings balances are at a record high. The key bank rate is expected to remain steady at 0.1% through the rest of 2020 but is likely to be cut to -0.1% next year*. Savers are looking for alternative ways to make their money work harder and are looking increasingly to fintech to do so. We are regressing to a time where people helped people. We can provide savers with higher rates of return whilst they support borrowers who struggle to find financial products on the high street.
We have completed more than 850,000 transactions on the JustUs Platform since inception with £7million lender capital repaid & £913,000 interest paid to our lenders. Successfully integrated the Moneybrain App into the platform in 2020.
Funds raised will be used primarily to support compliance and administration of the JustUs ‘Peoples Mortgage’ proposition (approval not yet obtained) including IT & back-office recruitment.