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General Terms & Conditions
Effective from: 28 February 2019
Ref: V.28

Loan Terms & Conditions
Effective from: 28 February 2019
Ref: V.5


Summary of updates to our General T&Cs

Last updated 28 February 2019.

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

New Products

In February 2019 we launched two new products which increase our range of interest rates up to 9%. We have also increased our maximum loan to value from 60% of forced sale value up to 60% of market value. Our new products are:

  • Commercial Loan: A loan for any business purpose where no planning permission or change of use is required
  • Development & Construction Loan: A loan for property developments and construction projects where planning permission or change of use is required.


Changes to General Terms and Conditions

In future and for our new products only we will not be seeking Lender’s consent to further advances which do not exceed the maximum loan to value set out in the Loan Summary Table or to second charges.

MarketPlace is our secondary market and the mechanism whereby Lenders can buy and sell their investment in a FOLK2FOLK Loan. The changes recognise that buying and selling may take place by a manual process, not online.

We have clarified the circumstances in which we will charge a Borrower for a valuation. Examples where we would do so are on a request for a further advance or for a partial release of the security to allow for a sale of part of a security property.


Key Changes to Fees and Expenses

We have carried out a general review of both our legal and loan administration fees:

  • We have deregistered for VAT. We will not charge VAT on our fees but will pass on to our customers irrecoverable VAT on third party fees such as panel solicitors and valuers.
  • The desktop valuation fee has increased to £300 plus VAT (£360).
  • ISA fee – this annual fee will no longer be payable as of beginning of the tax year, 6th April 2019.

In future and for our new products only we have introduced

  • a standard redemption charge of £250 which will be payable in addition to legal fees for all loans and
  • a new late redemption fee of 0.5% per annum of the outstanding loan amount calculated at a daily rate and collected at redemption. This is in addition to our current £250 admin charge for late redemption.
Previous changes to our General Terms & Conditions:

Changes made to T&Cs (last updated March 2018)
Changes made to T&Cs (last updated September 2017)
Changes made to T&Cs (last updated January 2017)