BLEND is a peer-to-peer property lending platform that lends to established businesses (mostly property developers) with loans secured against property. BLEND's ‘loan-based crowdfunding' platform was founded by a team of professionals with substantial experience in real estate and finance.
Peer-to-peer (P2P) lending is the process of lending money to professional businesses through an electronic system that matches lenders directly with borrowers. On BLEND's platform you are only able to lend to a property business but not to another individual.
Since April 2014, the P2P lending industry has been regulated by the Financial Conduct Authority to facilitate the protection of lender interests and ensure the continued servicing of the loans even if the platform goes bust.
BLEND Loan Network Limited is an Appointed Representative of Resolution Compliance Limited, which is authorised and regulated by the Financial Conduct Authority, registration number 574048.
You can check that the FCA regulates Resolution Compliance Limited and that BLEND Loan Network Limited is an Appointed Representative: https://register.fca.org.uk
All loan-based crowdfunding involves an element of risk. Past performance or the track record of any business listed on BLEND, including those with good cash flow and a healthy balance sheet, may not be a reliable indicator of performance in the future. Although BLEND tries to minimise the risk of loss through the taking of collateral, lending to a business on BLEND could lead to a loss of your capital as a lender if they default. Therefore, you should not lend more money than you can afford to lose.
Will we ever request your security details?
• Remember that we will never ask for your password or login details. If you receive any request for this information, kindly report it to us at email@example.com.
• Ensure you do not use a password that can be easily guessed and never use the same password for multiple websites, for which you are registered to use.
• Be minimalist with the amount of personal information you share about yourself online, to help reduce your risk of identity theft and fraud.
• Always update your computer, tablet and smartphone’s operating system and web browser software. We recommend you use anti-virus software to protect your devices.
Customer vulnerability is defined as any personal, social or other factor(s) that may impact your ability to exercise informed decision making, rendering you vulnerable to suggestion and/or impacting your confidence to lend or borrow.
Below we have outlined a broad range of vulnerable circumstances and situations including, but not limited to:
We cater to vulnerable customers. If you feel one of the above might be applicable, you can contact us (firstname.lastname@example.org) or call and a member of the team will be able to assist you with your investment journey.
No. The Payment Services Directive and the 2nd E-Money Directive both specifically state that funds taken by Payment Institutions (PIs) and E-Money Institutions (EMIs) are not to be classed as deposits. As such, the Financial Services Compensation Scheme does not protect these funds in the event of the failure of the PI or EMI.
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”.
BLEND's lender accounts are usually credited within two to three working days after receipt of borrower's instalment.
To withdraw uncommitted cash, please visit the 'Withdraw' tab of the lender dashboard.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
• 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 your P2P agreement. 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.
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.
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.
The minimum withdrawal amount is £0.10.
The minimum investment on our loans is £1,000.00
Know your customer: identifying and verifying our customers. This takes place at on-boarding.
Anti-money laundering: the set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.
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.
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.
Yes, Lenders can invest through a SIPP, please contact us at email@example.com to find out how.
Yes, the interest rate is always fixed and per annum.
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.
Yes, lenders can invest through a SSAS, please email us at firstname.lastname@example.org to find out how.
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 been sold or refinanced ahead of the loan maturity.
Lenders who wish to liquidate their loans 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.
You can start selling a loan in multiples of £1,000 on the secondary market once the funds have been released to the borrower.
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.
The secondary market is free for buyers.
In accordance with P2P regulation, sellers are not permitted to select their own price they sell their loan part for. Instead, sellers can sell their loan part at par value which is calculated by the platform automatically. This is to ensure all secondary market buyers are purchasing loans for a fair and appropriate price.
Par value is calculated dependant on the type of loan repayment method offered on the loan in question.
A loan part of £1,000 sold on the secondary market after 12 months of accrued rolled up interest, where the interest on the loan is 10% per annum.
The platform will calculate 12 months of rolled and compounded interest at 10% which is £104.71, added to the capital investment to give a par value of £1,104.71.
The seller will receive £1,104.71 minus the £6 fee for a net amount of £1,098.71.
The buyer will pay £1,104.71 (no fees to the buyer).
A loan part of £1,000 sold on the secondary market after 12 months where the interest has been paid monthly, where the interest is 10% per annum.
The platform will calculate a par value of £1,000 as all interest due has already been paid.
The seller will receive £1,000 minus the £6 fee for a net amount of £994.00
The buyer will pay £1,000 (no fees to the buyer).
This is to give all lenders time to review the loan details and decide if they are interested or not. Blend reviews and performs a revaluation of the loan during this period to determine that the price to be offered is fair and appropriate, and that potential buyers are given some time to view available information on the loan offering prior to it being allowed to go live.
In the case of a roll up, interest is being accrued but not paid until the final repayment date. Where a lender decides to sell a rolled-up loan on the secondary market and finds a buyer, the lender having not yet received any interest, will look to sell for their initial loan amount plus the accrued interest to date. The par value will be calculated for the lender automatically by the platform and will include any accrued rolled up interest to date.
Where an event that has taken place regarding the loan (non-performing like a miss payment, close to repay, partial early repayment, etc...) the platform can decide at its own discretion not to allow that loan to trade on the secondary market. This is to avoid any asymmetric information between a seller and a prospective buyer. This is also to make sure loans are trading at a fair and appropriate price on the secondary market.
The loan part you were offering could have come to the end of the offer period you had set up.
It could also have been de-listed because the secondary market is not available anymore for that loan (please see the explanation of availability of a loan on the secondary market in the FAQs).
Autolend is a feature of the Blend Network platform that allows you to make automatic investments according to the criteria that you select, such as interest rate and loan maturity. This feature allows you to choose a fixed amount to lend, allowing you to spread your money across multiple loans.
You can activate Autolend by:
Autolenders are all placed in a queue. The Autolend queue works on a first come first served basis. If a Loan is oversubscribed, priority will be given to lenders who first switched on Autolend.
You can deactivate Autolend at any time. If you switch Autolend OFF you will be removed from the queue.
Your Autolend will switch OFF automatically if your account balance falls below your Autolend amount.
If you switch Autolend back ON, you will re-join at the foot of the queue.
To read more, please read our Blog article here:
If you input an amount of £2,000 on AutoLend, AutoLend will first check the new loan listed matches your selected criteria before lending. If the loan matches your criteria, AutoLend will lend £2,000 when a new loan is available on the platform. If there was a loan listed on the platform before you activated Autolend, it will not lend on that loan.
When you switch on Autolend, it will lend automatically according to your criteria. Autolend can be switched on at any time but be aware that if a new loan has already listed before you switch Autolend on, Autolend will not lend on this loan, but on the next available loan.
Autolenders are ranked in a queue which works on a ‘first come, first served basis’. Lenders who have had Autolend switched on for the longest time will therefore lend first. All manual lenders will be ranked behind Autolenders. If a loan is over-subscribed, then Autolenders will fill all of the loan
Once you have received an instalment from a loan, the money will be credited to your available cash balance. Where the cash available is above the amount you have recorded for AutoLend, then AutoLend will automatically lend to the next available loan.
Loans with higher interest rates can look more attractive. Be aware that we price the risk before we list on the platform. That means usually loans with high interest rates are usually higher risk than loans with lower interest rates.
Blend offers bridging and development finance. Our typical loan size is between £150,000 and £3,000,000. Borrowers must be based in the UK and provide sufficient collateral to secure the loan.
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.
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.
We offer property loans; bridging and development finance. We offer acquisition, refurbishment, and bridging loans across the UK. We support commercial and residential investments and developments.
The platform's arrangement fee and listing fees.
The platform’s servicing fee added to the lender’s interest
An exit fee, payable at maturity
All loan applications must be made by an authorised officer of the business.
All loan payments are made via direct debit from your business current account.
If you think you may be late with the payment of an instalment or are experiencing financial difficulties then you should contact BLEND or your sponsor immediately.
Telephone: 0203 409 3300
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.
No. BLEND acts as the single point of contact for all the different lenders that loan you money.
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.
The platform sets the price of the loan to ensure that it is both fair and appropriate for both parties entering into the P2P 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.