Our cash back offer is designed to reward lenders who fund selected tranches of qualifying property development loans, by providing a greater share of the margin distributed to lenders.
What is the cash back offer?
As part of this offer, lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of the annual interest earned, (i.e. equivalent to one extra month’s interest per annum), payable as a one off at the same time as their monthly interest payment.
For example, a 12% loan would earn an extra 1% cash back for each qualifying tranche of a Development Finance Loan (DFL) loan.
How does the offer work?
A cash back qualifying loan tranche will be treated by Lendy as a separate loan for the purposes of calculating cash back. Note, all tranches however continue to rank equally in all other aspects.
At the end of the month cash back will be paid along with interest to whoever is holding the fully paid for loan part at the time. This is to ensure that all allocations in cash back tranches are fully paid for before cash back is credited.
The scheme is to help ensure all stages of a new property development receive the funding they require, and to reward those lenders who can help developers bring projects to completion.
This reward is allied with our rigorous due diligence process. We have recently added new resources to our credit and compliance functions. For due diligence, we also use a panel of Top 100 law firms and specialist RICS-registered valuers to support our own internal expertise.
We look forward to expanding the development loans we offer to our lenders over the coming months, and rewarding investors for funding those loans that require more of a guarantee of continuous access to ongoing funding.
* If a loan has not completed and therefore it has not drawn down, cash back will not be paid.