Terms and Conditions

General Terms & Conditions

Effective from: 28 February 2017
Ref: V23(AG)

Loan Terms & Conditions

Effective from: 12 January 2017
Ref: V3(AG)

Summary of updates to our General Terms & Conditions. (last updated 12/01/17)

In the usual way these amendments will affect all existing and future Borrowers and Lenders.

Note: 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. Throughout we have sought to clarify clauses and terminology and be more specific.


New position


Provisional Notice

Provisional Notice for DevelopersA clarification that this is only for Development sites with more than 5 plotsNew definition of Plot Sale (pg 5)
Provisional Notice lender fundsA tightening up to ensure Lenders who take funds out and then put funds back on the waiting list are not able to accrue two lots of interest.New Clause 20.2.7

Borrower Information and Reference Checks

Privacy PolicyA more detailed policy has been added.New Policy on website
Warranty from BorrowersWarranty from Borrowers that they are not in the business of lending and will not be using the loan for onward lending.New Clause 4.2.9

Arrears Process

Arrears PolicyAs a FCA authorised business we are required to hold an FCA compliant policy for Managing Arrears. There is now a clause notifying Lenders and Borrowers of the policy and our requirement to adhere to it.New clause 17.6
Arrears and Credit Reference AgencyAs part of our agreement with Equifax we will now report all Borrower missed payments to Equifax.Amendment to Clause 17.2 and revised Privacy Policy
Borrower information when Borrower in arrearsThe inclusion of detail regarding what information Folk2Folk would require from a defaulting borrower.New clause 23.1.8, 23.1.9 and 23.1.10


Pro-rata interest distributionThere is now a clause specifying the provision for the pro-rata distribution of interest if Folk2Folk only received a partial payment of interest.New clause 16.12

Lender Exit from Loans

Fixed Term Lender ExitThis has always been prohibited, but new provision more clearly and expressly stating this.New Clause 19.4
Lender Withdrawal ProcessPreviously there were requirements to refer to the Lender Pool before undertaking a Lender withdrawal. This is no longer required. In addition, Folk2Folk will use reasonable endeavours to find a replacement within 1 month of notice. Clarity that in the unlikely event a Lender replacement is not found then the Borrower must repay the sum due under this Loan Contract to this particular Lender at the end of the Notice period. Folk2Folk can substitute a Lender at any time in the Notice period, and on that date the interest payable to the existing Lender will cease and become payable to the new Lender. 
Lender withdrawal in an impaired loanA Lender will no longer be able to serve notice once a loan is impaired/default.New Clause 9.11

Parnalls' Role

Standby ServicerOriginally Parnalls Solicitors Limited would administer our loan book in the event we were unable to do so (such as we go into Administration). The FCA requires that the entity doing this holds the suitable and requisite authorisations to do so. As such there is now a contract in place with Street UK.New definition of Standby Services (pg 5)
Amendments to clause 4.5.4


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Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    Initially I borrowed money through Parnalls Solicitors in 2011...
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