Understanding
Loan Performance

At Wellesley, we only participate
in lending which is secured on property

Loan Performance

Investing in Peer-to-Peer lending involves matching lenders with borrowers whose loans are secured on property developments.
Similarly, when investing in the Wellesley Property Mini-Bonds or the Property Bond, the proceeds of your investment are used to make loans which are secured on property developments. It is important to understand that a percentage of borrowers will be unable to repay their loan and although each loan has security over property, your capital is at risk.

If a borrower does not repay a loan, we can sell the asset to seek to recover any shortfall however there is no guarantee that the value of the security will be sufficient to cover your capital and interest.

Current Loan Book Performance

We assess loan performance by the ability for the loan security to cover the loan principal and interest.
We consider a non-performing loan to be one where we forecast that the value of the loan security will be insufficient to repay the loan principal and interest. As property development lending carries complexity, we have standard and enhanced monitoring which we deploy relative to the risks and performance of each underlying loan.

Loan Book
Performance

  • 67%

    Performing
    (Standard Monitoring)

  • 28%

    Performing
    (Enhanced Monitoring)

  • 5%

    Non-Performing
     

Figures correct as at 30/09/2017 and updated quarterly. Figures subject to daily change. Loan Book performance may go up as well as down.

The Loan Book Explained

Standard Monitoring

This is a loan which is performing within the terms and conditions set down in the loan agreement. Any payments of principal or interest have been made on time and we expect the loan to be fully repaid within the original agreed timescale. Wellesley customers will be matched to loans in this category.

Enhanced Monitoring

This is a loan which is performing within the terms and conditions set down in the loan agreement. It is expected to deliver a full return of principal and interest, although it may have an increased risk profile and it requires closer management from Wellesley Finance to maintain the expectation of a full return of principal and interest. This category of loans is where Wellesley have identified a factor which gives a cause for concern and it is closely examined so that Wellesley can determine whether or not it represents a threat to the full repayment of the loan facilities. Wellesley customers will be matched to loans in this category.

Non-Performing

This is a loan where we do not expect the loan security to be enough to cover all of the loan principal and interest. This normally only happens when something has gone seriously wrong with the underlying development, or there has been a severe downturn in the overall market, and the value of the underlying asset has deteriorated considerably.

Investment through Wellesley involves lending to individuals or companies and therefore your capital is at risk and interest payments are not guaranteed if the borrower defaults. It is important to remember that historic loan default rates are not necessarily indicative of future default rates.

Wellesley Secured Finance Plc (the Issuer) was established as a special purpose vehicle for the sole purpose of issuing asset backed securities. Wellesley Secured Finance Plc is not part of Wellesley Group Limited. Wellesley Secured Finance Plc is not authorised or regulated by the Financial Conduct Authority. Wellesley Secured Finance Plc are not covered by the Financial Services Compensation Scheme.

The Wellesley Mini-Bonds and the Wellesley Property Mini-Bonds are issued by Wellesley Finance Plc, a company incorporated in England and Wales with its registered office at 6th Floor, St Albans House, 57/59 Haymarket, London SW1Y 4QX. The information contained in this webpage which relates to Wellesley Mini-Bonds and Wellesley Property Mini-Bonds has been approved as a financial promotion for UK publication by BDO LLP, 55 Baker Street, London W1U 7EU (FRN: 229378) which is authorised by the Financial Conduct Authority to conduct investment business.

The Wellesley Property Bond is issued by Wellesley Secured Finance Plc (10565816) whose registered office is at 35 Great St. Helen’s, London EC3A 6AP. The information contained in this webpage which relates to the Wellesley Property Bond financial promotion has been approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by The Share Centre Limited. The Share Centre Limited is authorised and regulated by the Financial Conduct Authority and is entered in the register under 146768.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA) (Registration Number 655503). Wellesley & Co Limited is not covered by the Financial Services Compensation Scheme. Wellesley Finance Plc is not authorised or regulated by the Financial Conduct Authority. Wellesley Finance Plc and Wellesley Secured Finance Plc are not covered by the Financial Services Compensation Scheme.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The trading address for both Wellesley & Co Limited and Wellesley Finance Plc is St Albans House, 57/59 Haymarket, London, SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 35 Great St. Helen’s, London EC3A 6AP.