|« RateSetter expands into Australia||isePankur rebrands as Bondora »|
Funding Circle cashback on property loan
Funding Circle, already offering a 1% cashback on all loans over £75,000, are now going to be introducing 2% cashback on a new commercial property loan. The loan is at a fixed rate of 8.5% (before fees) which is comparable to the average lending rate in the A+ (lowest risk) market.
Here is a copy of the email from Funding Circle. We have redacted the partnership name, the address and the link to the loan details, as this information was only shared with registered lenders.
Thank you for registering your interest in property finance loans at Funding Circle. As promised when you signed up, we have provided the details on the first formalised property loan going onto the marketplace. It will be listed this week.
Property Investment in Surrey
The partnership has owned and let the property for 54 years. The owners are now looking to borrow £265,200 to refinance a bank loan and release £64,000 in equity. It is a commercial investment loan with a 8.5% fixed rate (before fees) meaning that these loan parts will be auctioned on a first come, first served basis. You can download the full investor report [link removed], created by Funding Circle’s credit and property specialists.
Key features of the loan:
- A+ commercial investment loan
- 8.5% fixed rate (before fees)
- 36 month loan term, with a 15 year amortisation schedule
- £265,200 loan value
- 36% Loan to value
- Property located in Surrey
- Owned and managed successfully by same landlord for 54 years. No significant period of tenancy vacancy to speak of
- Current 2 main tenants have been in place for 10 and 20 years respectively
- First charge security on the property
- The monthly repayments will consist of interest and partial capital repayments, with a lump sum repayment of the balance at the end of the loan term
- Cashback at 2% for investors
Autobid will continue to bid on all available loans on the marketplace, and should be turned off if you do not want to bid on these loans.