Until mid February 2018, 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 duty bound to hold your money in a client account and will only release the money to a Borrower upon completion of the loan and security documentation. However, from mid February 2018, money should be sent to FOLK2FOLK who is required to hold it in a client money account and follow the FCA client money rules.
A different process applies for IFISAs.
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.
The minimum is £20,000 but there is no maximum.
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.
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.
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.
Yes but the minimum amount you can lend in each loan is £20,000.
Yes. But only once you have decided to go ahead with a loan.
If an interest payment is late the Lender will not receive their interest and FOLK2FOLK will investigate. If the loan is deemed to be impaired the monthly interest rate payable to the Lender increases to the full Interest Rate as opposed to the Reduced Interest Rate until all outstanding interest is paid. See our Terms & Conditions for more detail. If the Borrower defaults or goes bankrupt, FOLK2FOLK will instruct one of its Panel of solicitors to take appropriate action. Ultimately, the security could be sold to repay Lenders. Read more about defaults here.
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.
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.
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.
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.
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.
Please contact us to advise us of any change in your contact details by email on customerservices@FOLK2FOLK.com
Please email us to let us know if you have lost your log in details and we will issue new details to you.
We have a complaints policy which is located on our website and the first step is usually to contact our CEO. We are regulated by the Financial Conduct Authority (FRN 720867) and we have to adhere any requirements of the FCA concerning complaints from time to time.
Your capital is at risk and is not protected under the Financial Services Compensation Scheme. FOLK2FOLK Limited (Company Registration No. 08178576) is authorised and regulated by the Financial Conduct Authority (FRN 720867). Our registered office address is NUMBER ONE Business Centre, Western Road, Launceston, Cornwall, PL15 7FJ. VAT Registration No. 152145832.
Your property against which the loan is secured could be at risk if you don’t meet payments. FOLK2FOLK Limited (Company Registration No. 08178576) is authorised and regulated by the Financial Conduct Authority (FRN 720867). Our registered office address is NUMBER ONE Business Centre, Western Road, Launceston, Cornwall, PL15 7FJ. VAT Registration No. 152145832.