In certain circumstances, borrowers may request to extend the term of their loan. This might be because it is taking longer than anticipated for them to get planning permission. Equally, it could be that they are trying to refinance their loan and the incoming lender is slow with its processes. Whilst this is a common occurrence within the short term property lending market, such requests are considered on a case by case basis by our dedicated loan servicing team and we will only agree to extend the term of a loan if the request passes our rigorous approval process.
As part of this process we request further information from the borrower, including an updated valuation of the underlying property, to ensure we are comfortable with the level of risk. We will let you know if the loan is extended through our weekly roundups.
Please see our information on Managing Risk here.