With Property Development Loans (PDLs), it is not unusual that repayments are delayed, as building projects are complex and properties need to be sold, or the current loan refinanced to repay lenders. This will always be the case with this type of lending and many of loans will extend past the estimated repayment date. We will write to you to let you know when a delay is anticipated and then again once a new repayment date has been confirmed. This is standard practice for property development loans and you can find out more about how they work, here.
FAQs
Top frequently asked questions
My PDL Loan has been extended what happens now?
Where can I find an update on my investments?
All investment and progress updates are shared with investors via email and on our blog. We also upload these to your online account, which you can access using the follow instructions:
1. log into your Crowdstacker account
2. go to 'My Crowdstacker
3. 'My Accounts'
4. select the account you wish to view i.e. IFISA / P2P.
5. click the + symbol next to your investment
6. select the product update option.
You will see the latest updates here, including all historical information relating to the specific investment.
Can I invest without adding funds to my account?
Our pledge system allows investors to make a commitment to a particular loan, without having to fund their account right away. You are essentially saving your place in the loan.
When a commencement date is confirmed, we will contact you and ask you to fund your account and then place the order for you.
To make a pledge, please log into your Crowdstacker account and follow the instructions below:
1. go to 'My Crowdstacker'
2. select 'My Loan Pledge'
3. select 'Your investment choice' using the dropdown
4. enter the amount you would like to pledge (minimum investment is £100)
5. click on the submit button
You will receive an email of confirmation once you have submitted your pledge, then we will be in touch a few days before the commencement date to let you know when it is time to fund your account.
How often will I receive interest?
Our PDL investments pay either interest at the end of the term or monthly. If you choose to invest in a PDL that pays monthly interest, you will receive monthly payments to your Crowdstacker account or bank account and capital is repaid at the end of the loan term. If you select an investment that pays interest at the end of the term, interest and capital will be paid at the end of the loan term as stipulated in the Key Commercial Terms (KCTs) for the specific loan.
Where a loan has been delayed or extended, monthly interest payments will be suspended in line with the original payment schedule, but continue to accrue at the rate specified in your KCTs. Interest accrued between the original repayment date and the revised repayment date will be paid with the capital at the end of the new term once confirmed.
What happens to my balance if my loan does not commence?
When you invest, the funds are ‘committed’ to a loan. Your funds do not leave your account until the loan starts or commences and is held in our client account which is protected under the Financial Services Compensation Scheme (FSCS).
If a loan does not go ahead for any reason, it is shown as repaid in your investment stack online, however it will not show on your statements as the funds have never left your account. In these cases, your available balance is simply updated ready for you to invest elsewhere.
How do I arrange an ISA transfer to Crowdstacker
You can transfer from your Cash ISAs and Stocks and Shares ISAs into your Crowdstacker Innovative Finance ISA. Please log into your Crowdstacker account and go to 'My Crowdstacker', 'My Accounts'. Then select 'Go to IFISA Account'. You will be taken to a summary page where you see a number of options. Select 'ISA transfers' by clicking on the button. From here, you can download an ISA transfer form. Alternatively, please call us on 020 7118 7570 or email us at info@crowdstacker.com and we will send you a form.
Once you have completed the form, you can return it to our freepost address which is Freepost CROWDSTACKER (no stamp required) please also send us a copy via email to info@crowdstacker.com.
What happens when my PDL Loan matures?
Your capital and interest will be paid to either your Crowdstacker account or bank account (dependent on your account settings). If repayments are outside the normal payment schedule, capital and interest will automatically be paid to your Crowdstacker account.
When will my PDL Loan be paid back?
When you invest, you commit to the term as specified in the information brochure. However, due to the nature of PDL loans, you may get paid back slightly earlier or slightly later than the term specified in your Key Commercial Terms. This is because, the Borrower pays you back after the senior loan is repaid, and every time they sell a property. This is standard practice for property development loans.
When will my PDL Loan commence?
Due to the nature of PDL loans, close dates and commencement dates can change, meaning they can sometimes commence slightly earlier or later than anticipated. This is often due to the completion of legalities by the senior lender taking longer than anticipated and is no reflection on the Borrowing business. From a loan perspective, you will earn interest from the date of commencement and as specified in your Key Commercial Terms, so no interest will be lost. Any delays in commencement does not change the structure of the planned project as a whole. If there is a delay of completion of 4 weeks or more, we will write to you and let you know.
How do I make a PDL Loan application?
If you decide to invest, you will need to complete the online application in the normal way. Be sure to press ‘submit investment order’ at the end of the process to ensure that your order has been placed and you will be given an order reference on screen, plus an email from us confirming the order is placed.
If your application is accepted, you will receive a further email of completion followed by your Key Commercial Terms on the relevant commencement date. If we are unable to accept your investment offer, we will contact you and let you know.