Following the vote to leave the European Union (EU) I wanted to update you on Folk2Folk. It is anticipated that the process of leaving the EU will take approximately two years. As a result there will not be any initial change to Folk2Folk’s day to day operations.
Folk2Folk is in a very strong position. We have built a long term and lasting business able to withstand this sort of market-moving event. We have a heritage spanning over 300 years through Folk2Folk’s private mortgage origins. During that time the company’s predecessors weathered financial volatility and continued to provide finance for businesses in local communities through good and bad.
We have recently raised additional capital for our own business use which means we can trade through uncertainty. The Council of Mortgage Lenders (CML) which represents lenders in the UK, said it expected a “wait and see” approach from potential buyers and sellers of property following the referendum. CML senior economist Mohammad Jamei said: “Market fundamentals underpinning house prices still look sound and we do not expect significant house price falls especially given the urgent supply-demand imbalance.”
There may be some economic and political uncertainty over the short term and we will react accordingly. In the meantime, we will continue to lend up to 60% of the value of security (based on forced sale price of property) to local businesses known to our network. Our credit assessment process is robust and our approach to risk remains cautious.
If you have any questions, please do not hesitate to contact us on enquiries@FOLK2FOLK.com or call 01566 773296.
Jane Dumeresque, CEO, Folk2Folk