With nearly three decades of mortgage lending under our belts, we know a thing or two about managing loans here at SCP.
Our dedicated team contacts investors at key junctures throughout the loan term. This is a requirement under our peer-to-peer license agreement, and it’s also in accordance with our values around transparency when working with investors.
We typically provide updates to investors at the following points in the lifetime of the loan:
- We notify investors approximately two weeks out from the anticipated loan maturity date that the maturity date is coming up and we have been in contact with the borrower reminding them of the repayment date.
- If the borrower has requested an extension and needs to renew the loan, we will send the updated loan details to all investors. This includes the reason for the extension, any changes to the loan amount, LVR or loan interest rate along with the updated value and new maturity date.
- We will notify investors when we receive an official request from the borrower’s solicitor that they intend to repay the loan in full and require us to discharge the mortgage.
- Finally, we notify investors upon receipt of funds in full, or a lump sum payment to partially repay the loan. More information about partial repayments can be found on the FAQ page of our website here.
Of course, sometimes things don’t go to plan. If during the loan term, the following occurs, we will also communicate these to our investors:
- If the borrower is more than 30 days in arrears along with the steps we are taking to receive the missed payment(s) and if this will affect your interest payments in anyway. Our current default rates can be found on our website here.
- When a Property Law Act (PLA) notice has been issued upon the borrower’s default on a loan and legal action is required to recover the debt. For more details about PLA notices, click here.
- If we have approved an application for Hardship. This may involve the borrower applying to postpone mortgage repayments for a period of time. All applications are investigated thoroughly before approval. For more information, visit our Unforeseen Hardship.
We are fully transparent in our dealings with both our investors, and borrowers, and we are proud of our track record to date. A reminder to please let us know if your contact details have, or will, change so that we can continue to regularly communicate with you about your investments.
If you have any questions about a specific loan you have invested in, please email the investment team direct at investments@scpartners.co.nz.