The “Property Investment in Surrey” deal has an A+ risk band with a first charge secured on the property. The partnership that was seeking a loan has owned and let the property for 54 years.
The owners needed £265,200 to refinance a bank loan and release £64,000 in equity.
The interest rate was fixed at 8.5 per cent for lenders, but Funding Circle also offered 2 per cent cashback on this.
A Funding Circle email sent to investors at the end of last week stated: “Following Tuesday’s email where we provided details of our first formalised property loan, we’re pleased to tell you that this loan will be listed on the marketplace on Monday, 14th April.
“We had hoped that “Property Investment in Surrey” would be available for you to lend to this week, but, due to a delay in receiving local searches on the property title from the local authority, we have decided to wait until the start of next week. We have now received the local searches, completing our due diligence for this loan.
“We look forward to listing this loan on Monday and answering any questions you may have. And as a reminder to celebrate, we’re offering 2 per cent cashback on your lending to this loan. Happy Bidding!”
Funding Circle, which has now funded over £260 million of loans since its launch, announced its intention to move into property finance in November, after appointing Barclays Business Commercial Director, Luke Jooste, to head up its move into the property finance arena.
The deal, which was funded in 3 hours and 13 minutes yesterday, is on a 36-month loan term, with a 15-year amortisation schedule.
Luke Jooste, Head of Real Estate Finance at Funding Circle, commented: "At Funding Circle we want to help as many small businesses as possible access the finance they need. As part of this, we've been working with many small businesses who are property developers and investors since we launched in 2010 and we're now very pleased to have tailored a range of products to allow us to help even more businesses like them.“Yesterday, the first of these loans, a property investment loan for £265,200, was fully funded by 729 people within 3 hours and 13 minutes, showing the appetite from our investors to lend and diversify their portfolio. We can also help property developers and owner-occupied small businesses looking to buy or expand their existing premises through a commercial mortgage. We're excited about the prospect of helping many more projects off the ground over the coming months.”
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