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Investing

 

Great interest rate. Huge impact.

All our investors become FOLK2FOLK Lenders and are an important part of our Local Lending Movement.  You’ll be helping to build financially and socially successful local communities across the UK while earning 6.5% p.a. interest paid monthly.

By investing £20,000 or more, you’ll provide local, rural and entrepreneurial businesses with the funding they need to get off the ground, grow and develop.  So as well as a receiving a great interest rate, you’ll be making a huge impact! 

 

Why invest through FOLK2FOLK?

  • Interest at 5.5% p.a. or 6.5% p.a. paid monthly
  • All loans secured against UK land or property
  • Tax efficient investments possible with our Innovative Finance ISA
  • Lend to local businesses helping them to grow
  • Online Lender Portal enables you to view your investment information and buy and sell loan investments via our MarketPlace
  • No fees to enter into a FOLK2FOLK loan (with the exception of the IFISA where a 1% +VAT fee applies for the IFISA wrapper)

Risk warning:

  • Peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS)
  • With peer-to-peer lending your capital is at risk if the borrower is unable to repay the loan
    Read more about how we manage risk

Accessing your money         

Your capital investment will be returned to you once the loan reaches full term or when the borrower chooses to redeem their loan. If you wish to exit the loan prior to this, you can offer all or part of it for sale to other FOLK2FOLK lenders via our online secondary market MarketPlace.     

Tax 

  • Interest payments are paid over to lenders on a gross basis and it is the lender’s responsibility to report and pay any tax due. 
  • Tax treatment depends on the individual circumstances of each client and may be subject to change in future. 
  • Please note that Folk2Folk cannot give tax advice and you should seek tax advice if required.

Types of loan investments 

Investment opportunities will be one of the loan types listed in the below table:

Rolling loan

Interest rate

6.5% p.a. - Max LTV 60%
(forced sale value)

Minimum investment

£20,000

Innovative Finance ISA

Not eligible for IFISA investment

Investment term

6 months min – then rolling with 3 month notice period by the borrower for up to 5 years

Exiting my investment

At redemption date.


Or you have the option to offer your loan for sale via FOLK2FOLK’s MarketPlace 
(after 6 months from initial investment).

Fixed 1 or 2

Interest rate

5.5% p.a. - Max LTV 50%
(forced sale value)
6.5% p.a. - Max LTV 60%
(forced sale value)

Minimum investment

£20,000

Innovative Finance ISA

Eligible for IFISA investment
Full details here

Investment term

1 or 2 years

Exiting my investment

At redemption date.


Or you have the option to offer your loan for sale via FOLK2FOLK’s MarketPlace 
(after 6 months from initial investment).


 

Fixed 3, 4 or 5

Interest rate

6.5% p.a. - Max LTV 60%
(forced sale basis)

Minimum investment

£20,000

Innovative Finance ISA

Eligible for IFISA investment
Full details here

Investment term

3, 4 or 5 years

Exiting my investment

At redemption date.


Or you have the option to offer your loan for sale via FOLK2FOLK’s MarketPlace 
(after 6 months from initial investment).

 

To understand which investment might be best for you considering the impact of tax and the IFISA fees, take a look at our Interest After Tax & Fees Table.

 

Further details about lending via the FOLK2FOLK platform can be found in our Lender Guide and Terms & Conditions

Latest News

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.  

    I have borrowed money through Folk2Folk since they began and...
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