3 more FC property loans go late - how many does that make?

17 Aug 2017

The refinance with the external lender is no longer an option. However, sales have been agreed with purchasers (all 35 units have been sold) and the borrower has made provisions to obtain further funds to complete the development. The borrower anticipates that completion will occur by the end of November, at which point the Funding Circle loans will be repaid. We will continue to liaise with the borrower to ensure that this timescale is met and will update investors on any changes and further developments if/when they arise.



27 Jul 2017

The borrower has advised that the external lender has received the report this morning and it has been passed to their credit team for review. We will update investors in 2-3 weeks.



07 Jul 2017

The borrower has advised that the external lender has requested a monitoring surveyor's report to be provided. We understand that a surveyor has been instructed to attend site today and the report should be with the external lender next week. Once the report is received, the external lender will pass the matter to their credit team for final sanction. We will update investors in 2-3 weeks.



16 Jun 2017

We have seen the term sheet for the external refinance which offers the borrower the amount required to complete the project. We will continue to liaise with the borrower and update investors in 3-4 weeks when we should hopefully have confirmation of the draw down date.



09 Jun 2017

We require the borrower to confirm to the valuer and to us the total amount of the full development costs. A cost overrun has led to delays with the valuation report being provided (as the costs need to be verified). However, we are liaising with the borrower with regard to meeting the shortfall, which might involve funding being provided by an external lender to fund the completion. The development is well progressed and only a modest amount of funding is required and so we do not deem this a risk to investors at this stage. We will continue to liaise with the borrower and update investors further next week regarding this external refinance.



02 Jun 2017

We are still waiting to receive the valuation report. We will update investors further next week.



26 May 2017

We have posted this comment because this tranche of the loan to this borrower will miss its repayment date. The reason for this is because the borrower is currently in discussions with us to refinance this loan, however the process is taking slightly longer than expected. Repayment will therefore be late. We are awaiting a valuation report and when this is received, the matter can be passed to our credit team for sanction. We can confirm that interest will continue to accrue at an increased rate of 2% above the contractual rate, applicable from the date of expiry. We will update investors further next week.