Terms and Conditions

Loan Terms and Conditions
Effective from: 1 September 2021
Ref: V.6

Commercial Loan T&Cs
Effective from: 1 February 2022
Ref: V.3

Development & Construction Loan T&Cs
Effective from: 1 February 2022
Ref: V.3

Easy In Easy Out Loan T&Cs
Effective from: 1 December 2021
Ref: V.2

Fixed 1 or 2 Year Loan T&Cs
Effective from: 1 February 2022
Ref: V.3

Fixed 3, 4, or 5 Year Loan T&Cs
Effective from: 1 February 2022
Ref: V.3

Rolling Loan T&Cs
Effective from: 1 December 2021
Ref: V.2

Summary of latest updates to our T&Cs

In the usual way, these amendments will affect all existing and future Borrowers and Lenders. This is not a list of all changes, but a summary of key changes.  We encourage you to please read our updated Terms & Conditions to understand the full changes.

Latest update: 1 February 2022

• We have removed the need for a New Investor to sign a Transfer Certificate when investing in a Loan through our secondary market.
• We have removed the Success Fee from our secondary market – it is no longer payable.
• We have updated the Initial Review Fee from £240 to £360 to reflect a corresponding increase in our Panel Solicitors fees.
• We have removed the Extension request provisions from our Loan Products.   We had previously given the option to Borrowers in certain Loan Products to request a one-year extension to their loan maturity date (to be exercised at our absolute discretion), on paying a reduced initial arrangement fee.    This has rarely been used in practice and therefore we have decided to remove.  (Applicable to: Commercial Loan, Development and Construction Loan, Fixed 1 & 2 year Loan and Fixed 3, 4 & 5 year Loan Terms and Conditions)

Summary of previous changes

Updates during 2021

1 December 2021

On all Loan Product Terms and Conditions:

• We have removed the 3 months Prepayment Notice Period from our Commercial Loans, Rolling Loans, Easy In/Easy Out and Fixed 1,2, 3, 4, and 5 year Loans and replaced the Notice Period with a 1% early redemption fee (calculated on the amount being repaid) which is split so that Investors receive one month interest on early repayment and FOLK2FOLK retain the balance. This is in order to bring all loan products into alignment.   Alongside this change we have removed the standard £250 redemption charge.  We have set the minimum repayment amount that can be made by a Borrower at £40,000.
• We have amended the Prepayment Notice provisions so that the 1% Prepayment Fee is calculated in accordance with the amount being repaid, rather than the Outstanding Loan Sum.

1 September 2021 update:

• We removed the need for a Lender Confirmation Notice in our lending process and no longer share the names of Investors in loans to Borrowers.
• Removal of Provisional Notice for Borrowers (for Easy In Easy Out loans).
• Clarification that where we have joint Investors we can take instructions from one of them, on behalf of both.
• A change of process to require Investors to place funds with FOLK2FOLK prior to committing to a loan (due to be implemented in October 2021).
• The right for FOLK2FOLK to seek third-party funding to fund enforcement action against a Borrower.
• Appointment of external solicitors on enforcement action only at FOLK2FOLK’s discretion acting in the best interest of the Investors

11 March 2021 update:
Amended our fees in relation to late repayment of loans and discharge of security, to ensure that they are consistent across our products.

18 February 2021 update:
To enable us to use security from Borrowers for more than one loan – all monies security.

Prior to 2021

Changes made to T&Cs (last updated Oct 2020)
Changes made to T&Cs (last updated Sept 2020)
Changes made to T&Cs (last updated May 2020)
Changes made to T&Cs (last updated April 2020)
Changes made to T&Cs (last updated October 2019)
Changes made to T&Cs (last updated July 2019)
Changes made to T&Cs (last updated February 2019)
Changes made to T&Cs (last updated March 2018)
Changes made to T&Cs (last updated September 2017)
Changes made to T&Cs (last updated January 2017)