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Lending 01566 788667
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How it works

  • Where is my money held?

    There are two routes and we will let you know which applies as required.

    1. Money is not sent to FOLK2FOLK Limited but to the solicitors who have been appointed by FOLK2FOLK to act on your behalf.  The solicitors are required to hold your money in a client money bank account and follow the SRA client money rules.  They will only release the money to the Borrower upon completion of the loan and security documentation.
    2. Money is sent to FOLK2FOLK who is required to hold your money in a client money bank account and follow the FCA client money rules.  We will only release the money to the solicitors to release to the Borrower upon completion of the loan and security documentation.

    In both cases, the money is deposited with a bank.

  • Can I invest in more than one loan?

    Yes. To diversify exposure and reduce risk Lenders may spread their investment over several loans but there is a minimum of £20,000 per loan.

  • What is the minimum and maximum amount I can lend?

    The minimum is £20,000 but there is no maximum.

  • How do I get my money back?

    Your capital investment will be returned to you once the loan reaches full term or earlier if the Borrower chooses to redeem their loan earlier. 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 secondary market ‘MarketPlace’, but there is no guarantee that it will be bought from you, in which case you will remain invested in the loan.

Fees and interest rate

  • What fees do FOLK2FOLK charge?

    There are no fees for Lenders to enter into a FOLK2FOLK loan investment (though fees apply for the IFISA tax wrapper). There are also fees if you wish to exit your loan investment early, through MarketPlace.

  • Is tax payable on the interest?

    Yes. Interest is paid to Lenders gross i.e. without the deduction of income tax. All interest received will need to be declared to HMRC on the Lender’s annual (self-assessment) tax return. Tax is not payable on IFISA interest. FOLK2FOLK will send interest statements annually after the end of the financial year.

About your borrowers

Risk Regulation and Operations

  • Is my money safe? What’s the risk?

    All lending and investments carry risk and peer to peer lending is not covered by the Financial Services Compensation Scheme (FSCS).  We aim to mitigate risk to our Lenders by securing the loan against property, and by only lending up to 60% of the forced sale value of that property. Read more about risk. 

  • What happens if FOLK2FOLK goes bankrupt?

    FOLK2FOLK introduce the lending opportunities and manages the administration of the loan, it is not a party to the transaction itself. A non-trading Trust company (Folk Nominee Ltd) holds the charge on behalf of the Lenders. Such, should anything happen to FOLK2FOLK, this would not affect the loan, which otherwise remains in place. FOLK2FOLK Limited is authorised and regulated by the Financial Conduct Authority (FCA) and as such we’re required to maintain a certain level of regulatory capital. This means that there should always be sufficient capital for an orderly wind-down of the company. If FOLK2FOLK Limited were to stop operating, although there would be no new loans, the existing loans would be passed to a standby servicing company that would ensure that the administration of existing loans continued until maturity or until Borrowers repaid.

  • What happens in the event of a Borrower’s death?

    The Borrower’s estate will need to service the loan or otherwise look to repay.  It may result in there being a delay on payments of interest and Lenders should be prepared for such delays.  The delays could be caused by the need for the executors of the estate to obtain a grant of probate before being able to operate the Borrower’s bank accounts.

  • What happens in the event of an Lender’s death?

    The benefit of the loan will fall into the Lender’s estate and the executors can request FOLK2FOLK to put the loan in the name of the beneficiaries at a small cost.  FOLK2FOLK will be able to do this on the sight of the grant of probate.

  • Can I lend via a Self Invested Personal Pension (SIPP)?

    Yes, if the administrators of your SIPP  approve this.  Not all P2P loans are eligible for a SIPP and therefore there may be a delay in finding eligible opportunities.

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