Underwriting Procedures & Legal Documents

Before investing in any of our loan products it is extremely important that you read and familiarise yourself with the documents below. Our P2P procdeures manual has information on the extensive criteria a loan applicant must meet before we accept them as a client.

The P2P and Mini-Bridge manuals cover the deal lifecycle and process, the criteria for the loans we will accept, and the redemption of the loan process, including the recovery procedure that is followed if the loan goes into default. Loans of this nature can and do go into default, so it is vital you understand the procedure that is undertaken when this occurs.

The template legal charge documents are examples of the documents used by our solicitor which are signed by ourselves and the borrower(s) before a loan is made.

Please note: All the listed secured loans are not regulated mortgage contracts because they are either second charge business loans which are excluded from the definition of a regulated mortgage contract, buy-to-let agreements or loans secured against commercial property.

Underwriting Procedures/Manuals

For loans made in England and Wales:

For loans made in Scotland:

Flowcharts for Recovery Procedures for Peer to Peer loans

Legal Charge Documents

Used in England and Wales for all peer to peer and development finance

Summary table of development and bridging loan data


Development and Bridging Data: 2015 2016 2017  2018 Cumulative @ 30/10/18
Actual default rates: 11.1% 21.4% 42.5% 7.7% 32.5% *See note below
No of loans completed 9 31 88 68 196
Total value of loans completed £2,312,074 £16,095,000 £30,747,700 £21,767,000 £70,921,774
Average loan period (months) 11 11 9 9 9
Investor Capital Lost 0% 0% 0% 0% 0%
Average loan size £256,897 £519,194 £349,406 £320,103 £361,846
**No of loans due to be redeemed 9 28 71 9 117
**No of loans redeemed on time 8 22 40 8 77 65.8%
**No of loans redeemed late 1 4 9 0 14 12.0%
**No of loans in default 0 2 22 1 26 22.2%

*Figure shows the % of loans that have gone into default* (*defined as a loan that was either repaid more than 8 weeks following the end of the loan term or is currently in default). Please note that to date 100% of capital has been repaid on all House Crowd loans.

**Note- Please note that redemption and default figures are based on the year the loan is made in e.g If a loan is made in 2017 and redeems in 2018 (even if late paying) the stats for it will be recorded in 2017.