Loan queries double at Proplend as platform offers refinancing facility

Property-backed peer-to-peer platform Proplend saw its loan enquiries double in June, month-on-month, and a number of new deals are expected to be listed soon.

In its latest investor update, Proplend also revealed that it is willing to offer refinancing facilities to borrowers who have been let down by another lender.

“Hopefully this will allow existing lenders a timely exit and potentially new lenders into the new loan,” the platform said.

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According to the investor note, June was a “productive” month for the platform, with four loans repaid in full, one loan partly repaid, and three loans drawn down.

“Whilst we still have some past maturity loans, progress is being made,” said the platform.

“Development finance lenders, one of our exit routes, are issuing new terms and starting to close deals. One past maturity loan has just last night (5 July) exchanged contracts for sale.”

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Proplend added that it is actively working in the background on its new deal pipeline and told investors to expect to see some new loans coming to platform over the coming weeks.

92 per cent of interest was paid to investors in June, up from 84 per cent in May, as the market began to reopen following the UK-wide lockdown. Where interest payments were missed, Proplend’s investors were successfully paid back from the Interest Reserve.

“Where borrowers have had to use the Interest Reserve, we have agreed with them that they will replenish the Interest Reserve back-up over the next six months to bring the Interest Reserve back to the required level,” said Proplend.

“Borrower relationships on the whole have been maintained at a very cohesive level.”

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