FAQ
FAQs for Borrowers
Who can apply for a BLEND loan?
BLEND offers bridging and development finance. Our typical loan size is between £500,000 and £10,000,000. Borrowers must be based in the UK and provide sufficient collateral to secure the loan.
What type of loans does BLEND offer?
We offer property loans; bridging and development finance:
Acquisition
Auction
Light Refurbishment
Heavy Refurbishment
HMOs
Student Accommodation
Office Conversion to Residential
New Build
Development Exit
What information do I need to provide?
Initially you'll just need to complete BLEND's borrower registration. We will then contact you to set up a meeting where you'll be given a detailed requirement list.
What Security does BLEND accept?
BLEND loans are secured against property assets with a first charge.
We also accept personal guarantees, but these are not enough to secure a loan on their own.
Details on the security provided can be viewed on the loan information page.
Blend is very transparent and does not deal with unsecured loans.
What are the fees to the borrower?
The platform's Arrangement & listing fees.
An Exit fee, payable at maturity.
Can any representative of my company apply for a BLEND loan?
All loan applications must be made by an authorised officer of the business.
How do I repay my loan?
All loan repayments are made by bank transfers from your business current account.
When interest is serviced, it can be paid by Direct Debit.
What happens if I’m late or think I will be late in making a repayment?
If you think you may be late with the payment of an instalment or are experiencing financial difficulties then you should contact BLEND immediately.
Telephone: 0203 409 3300
Email: [email protected]
What information will be made available to lenders?
Lenders will have access to the borrower’s full information pack alongside any supporting documentation that is uploaded to the platform. This may include documents such as RICS valuation reports, marketing brochures, etc.
Do I have to deal with all the different lenders?
No. BLEND acts as the single point of contact for all the different lenders that loan you money.
Can I repay the loan early?
Yes. Unless agreed otherwise, there are normally no penalties or additional costs for early repayment of the loan. The exception to this being if your agreement stipulates that the loan will run for a minimum number of terms.
Do you have a Heter Iska in place?
Yes. If requested your Loan documents will incorporate an addendum called Heter Iska (a copy of which can be found here). This reframes the relationship between Blend and the Borrower as an investment partnership.
What is the platform’s role in pricing of loans and how is borrower eligibility assessed?
The platform sets the price of the loan to ensure that it is both fair and appropriate for both parties entering into the agreement, considering the level of risk that the lender is exposed to. The firm requires all borrowers to meet strict eligibility criteria based on an in-depth due diligence assessment of the risk that one or more repayments under the agreement with the lender/s may not be made. Specifically, the firm looks at various aspects of the applicant as well as those individuals who own and are in day to day control of it.
The assessment is, in all cases, based on sufficient information of which the firm is aware of at the time that the assessment is carried out and on information obtained from both the borrower and other external sources.
In addition, the firm undertakes ongoing assessments after the loan is drawn down on to proactively ensure that any indication of arrears or default is dealt with and mitigated where possible.