FAQ

Is my money (cash) held with an E-Money Service Provider covered by the Financial Services Compensation Scheme?

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.

Is my money (cash) held with an E-Money Service Provider protected or safe while held with the e-money service provider?

The third-party money services company handling funds on our behalf (the Lending platform) ensures that the funds from clients on the platform are held in designated “Segregated Client Bank Accounts”.

When do repayments show up in my account?

BLEND's lender accounts are usually credited within two to three working days after receipt of borrower's instalment.

How do I withdraw money from my account?

To withdraw uncommitted cash, please visit the 'Withdraw' tab of the lender dashboard.

What happens if a borrower repayment date falls on a weekend or bank holiday?

Your repayment dates can be seen on the Portfolio Expected Cashflow page by going on the Summary tab on your Dashboard. Please note that lender repayment dates are indicative only. If a borrower repayment date falls on a weekend or a bank holiday, payments will be processed on the following business day.

How do I deposit money?

Once you have registered and passed our KYC/AML checks, go to "My dashboard" and then "Manage my account".

On the "Deposit" tab (on the left side), enter the exact amount you wish to transfer. Once you have clicked on "Credit my account", you will receive the bank details with the unique reference for that transaction on your screen and by email. This reference is unique and a new reference must be generated for each deposit you make.

You can now go on your bank account and transfer money using those details, including the unique reference number. Any deposit made in the morning will show on your account by close of business. Any deposit made in the afternoon will show by midday on the next business day.

How are borrowers assessed?

Credit underwriters undertake a detailed due diligence, including meeting the borrower, visiting the site, profitability of the project, the borrower’s experience, location of the property and the exit plan. Any information gathered is made available to lenders for download and review in an information pack found with each loan listed on the platform. BLEND's credit committee will then review the loan and decide whether or not to list it.

When does my account get activated?

Your account will be activated once the KYC (Know Your Customer) and AML (Anti Money Laundering) checks are cleared. It usually takes up to 2 business days. We’ll send you an email notification once it’s done and you’ll be able to lend on BLEND. Please note that the account you use must be in your own name.

You may be required to provide additional documentation to help us complete the KYC and AML checks.

Are there any fees for lending money on BLEND?

There are no set up fees, no membership fees and no lending fees. The only fee you might pay as a lender is our secondary market fee which amounts to 0.60% (or £6 for every £1,000 of capital) on capital outstanding. We'll only charge this upon the successful resale of the loan portion you have listed in the secondary market.

How can I get my money back if my circumstances change?

Lenders who wish to liquidate their loan parts can sell their loan parts on the secondary market. Note that finding a buyer on the secondary market may take time and there is always a risk of no one buying your loan part. Please visit the Secondary Market tab in your Lender Dashboard for more information.

What types of Repayment methods does BLEND offer?

Blend offers a wide range of loan types designed to fit borrower needs.

The platform will offer the "classic amortization" (Capital and Interest) schedule, "Interest Only" with capital repayment at redemption and Roll ups.

Roll ups allow the borrower not to pay anything for a fixed period of time (the first 12 months for example on an 18 month loan). Rolled up interest is accrued monthly and added to the capital of the loan. Lenders still earn interest for the roll up period, but this interest is repaid at redemption.

When do I start earning interest?

Lenders start to earn interest from the end of the auction period. The loan terms therefore start at drawdown. NB: Any interest earned pre-drawdown will be credited to the lender's account at first repayment date. This means that amount of the first payment may be slightly larger than that of subsequent months.

What does BLEND consider to be a loan failure?

If a borrower's instalment was missed, the platform would contact the borrower as soon as possible to request a manual payment. In the event the borrower has insufficient funds to pay his instalment, the platform and the borrower would work together to find a solution to repay the loan. If no solution can be agreed, then the platform would appoint an administrator for the recovery.

If a borrower defaults, how does BLEND recover the lender's money for secured loans?

A company that fails to pay its debts has exhaustive procedures to reschedule or recover outstanding amounts. A requirement for listing a loan on the BLEND platform is security (plus personal guarantees in most cases). In the event of a default, BLEND would seek to re-possess the asset (and any additional security). Subsequently, BLEND would liquidate the security in the open market on our lenders' behalf.

NB: If a borrower does default, although it may take several months to recover the outstanding debt, our security position should make the recovery likely, but this may not be in the full amount.

Money shows up as 'Committed' in my dashboard. What is this?

The Committed account houses money that is awaiting to be drawn down. This usually happens in the lapse of time between your investing in a loan and the time where funds are released to the borrower (drawdown). Once you have confirmed on the platform that you want to lend to a specific loan, you are committed to the investment.

What would happen if BLEND Network dissolves?

• Lenders’ money that is not invested is held in a segregated Client Money Account with Barclays Bank plc. It is administered by MangoPay SA.

All uninvested funds will be returned to you upon request. Please note that it may be the case that most of the funds that you are owed will be from outstanding repayments of interest and initial capital from outstanding loans. Unlike your uninvested funds, these repayments will not be immediately available and will be repaid to you in line with the terms of our Wind Down plan. Your capital remains at risk and repayments cannot be guaranteed.

• The Security agreed between each Borrower and Blend (Security Trustee) Limited is held in trust by Blend (Security Trustee) Limited for and on behalf of the Lenders to the Borrower;

• Blend Network has made arrangements with a third party, Resolution Compliance Limited, who is authorised and regulated by the FCA, whereby it will take over the administration of the outstanding loan contracts in the event that Blend Network is insolvent or ceases trading, to help ensure that the Borrowers continue to make interest and capital payments as they fall due and the appropriate amounts are then distributed to the Lenders.

You can download our Wind Down plan or contact us for further information ([email protected]).

Is the borrower charged for late repayment?

In the event of a borrower being late to repay, the platform has discretion to charge penalty interest.  The penalty rate paid to the lender is 0.25% per month, above the interest rate.

Why is a Loan listed for 24 hours before Lenders can start lending?

When a new loan gets listed, lenders cannot lend to this loan in the first 24 hours. This is to give all lenders time to review the loan details and decide if they are interest or not.

Minimum Withdrawal

The minimum withdrawal amount is £0.10.

What is the minimum investment?

The minimum investment on our loans is £1,000.00

KYC

Know your customer: identifying and verifying our customers. This takes place at on-boarding.

AML

Anti-money laundering: the set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.

LTV

Loan to value: the loan amount divided by the property’s purchase price or appraisal value. Typically, a higher LTV ratio is generally seen as higher risk.

GDV

Gross development value: the estimated value that a property or new development would sell for on the open market if it were to be sold in the current economic climate.

Can Lenders invest using a SIPP?

Yes, Lenders can invest through a SIPP, please contact us at [email protected] to find out how.

Is the interest rate on each loan fixed?

Yes, the interest rate is always fixed and per annum.

Who is responsible for taxes?

It is each lender’s own responsibility to declare any money earned through BLEND to HMRC. Lenders can download an individual tax statement at any time from the lender dashboard ("Manage my account" -> "Tax Document").

Interest payments from loans made through BLEND are paid gross and no tax is withheld by us.

If you are unsure of your tax position you should take independent professional advice.

Can Lenders invest using a SSAS?

Yes, lenders can invest through a SSAS, please email us at [email protected] to find out how.

When does a Borrower repay their Loan

Loans are normally repaid at the end of the loan term when the property or development site is sold or refinanced. However, the borrower has the option to make an early repayment or a partial early repayment in the event the property has been sold or refinanced ahead of the loan maturity. This means you will receive interest for the length of time between the loan starts and when the borrower repays.

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