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Investors. Don't invest unless you're prepared to lose money. Take 2 mins to learn more.

How it works

  • Where is my money held?

    Money is sent to FOLK2FOLK who is required to hold your money in a client money bank account and follow the FCA client money rules.  We will only release the money to the solicitors to release to the Borrower upon completion of the loan and security documentation.

  • Can I invest in more than one loan?

    Yes. To diversify exposure and reduce risk, Investors may spread their investment over several loans but there is a minimum of £20,000 per loan.

  • What is the minimum and maximum amount I can invest?

    The minimum is £20,000 but there is no maximum.

  • How do I get my money back?

    Your capital investment will be returned to you once the loan reaches full term or earlier if the Borrower chooses to redeem their loan earlier. If you wish to exit the loan prior to this, you can offer all or part of it for sale to other FOLK2FOLK Investors via our secondary market, but there is no guarantee that it will be bought from you, in which case you will remain invested in the loan.

  • What happens if the Borrower wants to redeem their loan early?

    In the event that a Borrower redeems their loan early, investors will receive one month’s interest. This is a change to our previous Terms & Conditions and came into effect on 1st December 2021 for all FOLK2FOLK loans.  You can view our current Terms & Conditions here.

Fees and interest rate

  • What fees do FOLK2FOLK charge?

    There are no fees for Investors to enter into a FOLK2FOLK loan investment. There are fees if you wish to exit your loan investment early through our secondary market.

  • Is tax payable on the interest?

    Yes. Interest is paid to Investors gross i.e. without the deduction of income tax. All interest received will need to be declared to HMRC on the Investor’s annual (self-assessment) tax return. Tax is not payable on IFISA interest. FOLK2FOLK will send interest statements annually after the end of the financial year.

About your borrowers

Risk Regulation and Operations

  • Is my money safe? What’s the risk?

    All investments carry risk and marketplace lending and peer to peer loans are not covered by the Financial Services Compensation Scheme (FSCS).  We aim to mitigate risk to our Investors by securing the loan against property, and by only lending up to 60% of the value of that property. Read more about risk. 

  • What happens if FOLK2FOLK goes bankrupt?

    FOLK2FOLK introduce the investment opportunities and manages the administration of the loan, it is not a party to the transaction itself. A non-trading Trust company (Folk Nominee Ltd) holds the charge on behalf of the Investors. Such, should anything happen to FOLK2FOLK, this would not affect the loan, which otherwise remains in place. FOLK2FOLK Limited is authorised and regulated by the Financial Conduct Authority (FCA) and as such we’re required to maintain a certain level of regulatory capital. This means that there should always be sufficient capital for an orderly wind-down of the company. If FOLK2FOLK Limited were to stop operating, although there would be no new loans, the existing loans would be passed to a standby servicing company that would ensure that the administration of existing loans continued until maturity or until Borrowers repaid.

  • What happens in the event of a Borrower’s death?

    The Borrower’s estate will need to service the loan or otherwise look to repay.  It may result in there being a delay on payments of interest and Investors should be prepared for such delays.  The delays could be caused by the need for the executors of the estate to obtain a grant of probate before being able to operate the Borrower’s bank accounts.

  • What happens in the event of an Investor's death?

    The benefit of the loan will fall into the Investor’s estate and the executors can request FOLK2FOLK to put the loan in the name of the beneficiaries at a small cost.  FOLK2FOLK will be able to do this on the sight of the grant of probate.

  • Can I invest via a Self Invested Personal Pension (SIPP)?

    Yes, if the administrators of your SIPP  approve this.  Not all marketplace or peer to peer loans are eligible for a SIPP and therefore there may be a delay in finding eligible opportunities.

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