P2P Money Blog

Funding Circle have announced they will be extending the 2% cashback on property loans.  The first property loan was very popular, partly due to the cashback offer.

Here is a copy of the email from Funding Circle.  We have redacted the company name, the full address and the link to the loan details, as this information was only shared with registered lenders.

Here are the details of the second formalised property development loan going onto the marketplace. It will be listed this week.

Property Development in South East London

The borrower is a father and son team who have reportedly developed 29 properties in the local area over the past 10 years. This loan is for £212,000 and is the first staged draw down of the full £1,004,445 that will be required for the project in South East London.  It is a property development loan with a 7% fixed rate (before fees) meaning that these loan parts will be auctioned on a first come, first served basis. You can download the full investor report [link removed], created by Funding Circle’s credit and property specialists.

Key features of the loan:

• A+ property development loan
• 7% fixed rate (before fees)
• 18 month loan term
• £212,000 loan value (1st staged drawdown)
• 47% Loan to value (Based on completed project value)
• 4 x 2 bedroom houses to be built in Forest Hill, London
• Borrower has reported track record of 10 years developing property schemes in the local area
• First charge security on the property
• The monthly repayments will consist of interest payments only, with the principal and any interest due paid back at the end of the loan term. Remember, you are lending to businesses so your capital is at risk
• Cashback at 2% for investors*

Autobid will continue to bid on all available loans on the marketplace, and should be turned off if you do not want to bid on these loans.