“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 arranged private mortgages. If their clients had money to save Parnalls would recommend they save with my building society and in return, I would provide their clients with mortgages. This was very standard practice in the 1980s and was the way we all did business in those days.
I then set up my own finance broking company and was already lending a bit of my own money through Parnalls when Mark Parnall set up Folk2Folk.
I have always been delighted with Folk2Folk. Their security and service is top notch. I get a good income and you know exactly what you are getting and when you’re getting it.
The way Folk2Folk works is unique: the lender lends the entire sum for an agreed period, receives monthly interest payments and then receives the capital sum in its entirety at the end of that agreed period. All other peer-to-peer lenders insist on monthly capital payments but I don’t want to have to think about where to reinvest this “dribbled back” capital every month, I want my business to have it’s loaned capital all earning interest all of the time. This is also much better for the borrowers’ cash flow.
When I lent through another well-known peer-to-peer lender, although their headline interest rates were slightly higher their losses were significantly higher so it was a total waste of time. Also, it was all computer and internet based, there was no personal contact it was just a nightmare. Now I would never lend through any other peer to peer company. On many of those sites, you can give the odd £10 or £50 to Mrs Bloggs who wants to buy an oven but I don’t want to be mucking about with £10 here and there, I want large chunks of my money to go to individual borrowers.
Folk2Folk are nice personable people, I can pick up the phone and speak to them, I very simply arrange a bank transfer and the following month the interest is coming through. It couldn’t be easier or any better.”