Underwriter’s role in lending

The underwriters perform an important role within the process of Borrower funding. Set out are the steps that take place during funding and where the underwriters take part in the process;

  • 1. Business Development Manager proposes property company for finance.

  • 2. Underwriters review proposal and agree to finance the Borrower at specified rate, subject to the Borrower successfully completing the application process, which includes AML and KYC due diligence checks.

  • 3. Due diligence is undertaken by Invest & Fund and our solicitors undertake the necessary legal enquiries.

  • 4. Running in parallel to this process, an ‘Agreement in Principle’ is sent to the Borrower. Once signed and returned, 3rd parties are instructed and the necessary valuations are prepared.

  • 5. Once due diligence has been completed, all legal documents have been prepared and Invest & Fund’s credit team have approved the finance, the Borrower proposition is put onto the platform and is opened up to all Lenders.

  • 6. Should the auction raise 100% of the finance required, the underwriters take no further part in the financing.

  • 7. If the total finance required is not reached at the closing of the auction, the underwriters step in and make up any shortfall at the same interest rate as the other Lenders.

  • 8. The purpose of the underwriting team is to provide the Borrower with the certainty of funding.