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Funding Circle Prioritising Property Loans

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We are currently exploring ways of expanding the types of loans we offer to our investors, with property finance being our priority for early 2014.

We have identified three key areas of commercial property finance which we think would be of interest to our investors:

Property development loans

The funding would help professional developers build or revamp either a residential or commercial property with the intention of selling it on or refinancing, once the build is complete.

Buy-to-let loans

The funding would help property investors purchase either commercial or residential units for the sole purpose of letting them out to paying tenants.

Commercial mortgage loans

The funding here would assist businesses that want to buy an office, retail or industrial site that would be owner occupied, or allow the release of equity against properties that are already owned.

We will secure first charge on all property loans meaning we take full ownership of the property should anything go wrong. This would greatly improve the chances of recovery for investors.

Oh dear. Survey questions below. Suggestions on responses welcome. :)

  1. Are you already investing in property finance loans as part of your investment portfolio?

  2. Of the types of loan outlined below, how likely are you to invest money in each? (Please select all that apply)

    • Property development loans

    • Buy-to-let loans

    • Commercial mortgage loans

[*]How much would you consider investing in property loans with Funding Circle?

[*]We are considering offering some shorter term property development loans where the principal would be paid back at the end of the loan term in a one-off repayment, and the pre-calculated interest paid in monthly instalments. These loan parts would be able to be sold on the secondary market. How likely are you to invest in these types of loans?

[*]If any, what would be your barriers to investing in property loans?

[*]Please provide any additional comments on your expectations from Funding Circle in providing property loans on our platform?

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Even when these things are setup to disintermediate the banks, they still end up stoking the property market bubble.

Is there really so little production going on that every pound of investment needs to be routed our steaming turd of a property market?

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Bring it on, if they're trying to get the average man on the street to invest in the mortgage market then surely this indicates a market top is near, and that is all to the good in terms of moving towards an eventual HPC. When people actually respond to this advice and start sinking their savings into these kinds of schemes and telling you about what a good investment it is at dinner parties then we'll know a market top is actually here.

You know it's time to sell when shoeshine boys give you stock tips. This bull market is over.

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Well that's me out of FC now.

It just goes to show, your money isn't safe anywhere, even if you try to keep it out of the housing market you're still indirectly involved.

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Even when these things are setup to disintermediate the banks, they still end up stoking the property market bubble.

The lent money is already existing money rather than newly created money. However I cant see it taking off though because I cant see how they can come close to competing with FLS/QE funny money.

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Well that's me out of FC now.

It just goes to show, your money isn't safe anywhere, even if you try to keep it out of the housing market you're still indirectly involved.

i tried funding circle, its pretty poor if you ask me and after reading this ill be pulling my funds. i did notice these were no end of property related requests for funding, everything seems to get funding too, if i were he'll cent on fraud id chance my arm there! .

the other thing is twenty percent of all loans arm back by the tax payers!

more indirect support for the bankers via house lending.

free market Tory, what a joke.

Edited by TheCountOfNowhere

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Even when these things are setup to disintermediate the banks, they still end up stoking the property market bubble.

Is there really so little production going on that every pound of investment needs to be routed our steaming turd of a property market?

Not much else has a planning cartel protection, i guess.

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Well that's me out of FC now.

It just goes to show, your money isn't safe anywhere, even if you try to keep it out of the housing market you're still indirectly involved.

Well with FC you do have a choice over who you lend to. I responded to the survey and made it clear that anything with the vaguest whiff of BTL would not get a penny from me.

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Yeah but if FC finds itself with a whole bunch of property loans that make it unsustainable, you never know how secure the other funds in there are.

FC doesn't really work like that. The company makes most of its money from arrangement fees. If they lend to 100 BTL parasites and they go under its only the mugs who put the money in that lose.

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