How you can help support new homes being built. Weekly Lending Review

Week 41: 6 – 12 October 2014

Last week, over £9 million of new loans came to the marketplace, including 2 property loans with 2% cashback* available on all successful lending: a £350,000 property development loan with a 7% fixed rate, and a £571,440 commercial mortgage with an 8% fixed rate. Remember, by lending to businesses your capital is at risk.

New loans

There were 131 new business loans listed last week and there are currently 73 auctions on the marketplace, available for you to lend to.

The total value of the new listed loans was £9,244,340; averaging at £70,567 per loan. The largest loan value was £571,440 and the smallest loan value was £5,000.

Business loans still available for bidding on for the next 3 days or more:

Weekly marketplace trends

These graphs show the most recent activity on the marketplace. The average gross yield graph is reported weekly and shows a rolling two week average of gross yields. This calculation assumes you reinvest your interest each month and therefore includes the compound interest you earn. Number of loans and value of loans are reported weekly. The dates on the graph should be read as ‘week beginning’, for example: 6-Oct represents the week of 6th – 12th October.

Weekly average gross yield (2 weeks rolling)

yield

Number of listed loans per week

number

Listed loan value per week

value

Help build houses

Over £15 million of property loans have been funded by you since April this year. Samir Desai, Funding Circle CEO, shares his thoughts about the housing market and how marketplaces such as Funding Circle can help fill the housing gap.

September’s top peer-to-peer industry news

Included in this month’s roundup: UK peer-to-peer lending hits £2 billion, the Funding Circle founders are on the front cover of Bloomberg Markets, and a Funding Circle borrower was featured on CNN.

News you should know

Over the coming weeks we’ll be making some changes to the investor summary page. One of these changes will be separating your accrued interest (the interest that you’ve accumulated that hasn’t yet been paid to you) from the Funding Circle total. You’ll still be able to see what interest you’re accruing, but it won’t be shown in your funds summary pie chart, or your total account balance, anymore.

Minimum bid rates will stay the same for November

We review the minimum bid rates in the middle of every month to decide whether they should be changed or kept the same. This month, we have decided to keep minimum bid rates at their current levels:

A+: 6%

A: 8%

B: 9%

C: 10.2%

C-: 12.2%

Loans defaulted last week

Metalworks. Loan 4653

This Redditch business was incorporated in 2010 and has entered into liquidation. The original loan amount was £20,000 and all affected investors have been notified.

Plumbing and heating business. Loan 4668

This Aberdeenshire-based business was incorporated in 2007 and has fallen behind with their repayments. The original loan amount was £50,000 and all affected investors have been notified.

Accountancy firm. Loan 992

This Manchester business was incorporated in 2007 and the business is now in liquidation. The original loan amount was for £36,000 and all affected investors have been notified.

Domiciliary care. Loans 980 & 1549

This Wiltshire business has been incorporated since 1997 and the business is now in liquidation. The original loan amounts were for £30,000 and £50,000 and all affected investors have been notified.

Our collections and recoveries team are working to recover the outstanding amounts for all of these loans.

Enjoy lending, The Funding Circle Team

*Terms and conditions apply

Jack Pritchett

Senior Communications Manager