Wellesley & Co (‘Wellesley’), one of the UK’s fastest growing asset-backed peer-to-peer lenders has today made history announcing the completion of the largest ever loan made through a peer-to-peer platform.
The £10.8m loan – which beats the industry’s previous £8.3m record also set by Wellesley in April this year – is secured against the historic mansion Burwalls, which is situated next to the iconic Clifton Suspension Bridge and the Avon Gorge in Bristol. Specifically, the loan has been used by London and Bath-based developer Kersfield to purchase the property, who will renovate the 142 year old building and grounds to create five new apartments, six new build houses and a converted lodge.
The loan takes the total funds issued by Wellesley, since being founded in November 2013 to £73m, secured against assets worth £116m. According to the latest data from the AltFi Liberum index, Wellesley & Co lent more than any other peer-to-peer lender in July lending over £26.2m, more than its larger rivals Zopa, Ratesetter and Funding Circle.
The new record is the latest milestone in Wellesley’s growth following the successful launch of the largest ever mini-bond last month. The £100m issue offers investors access to market leading rates over three (6% gross), four (6.50% gross) and five (7% gross) year terms with funds used to further boost the business’ lending capacity.
Commenting, Graham Wellesley, Chairman and Co-Founder, Wellesley said:
“The completion of this loan is a fantastic achievement, not just for the Wellesley team but also those investors who have supported the business since our launch last November. To be able to break the record we set earlier this year demonstrates our phenomenal growth and we’re delighted to have been named market leader in terms of monthly cumulative origination volumes.”
“It’s been a landmark month for the business not only in terms of completing this loan but also following the launch of our mini-bond and the start of our national TV advertising campaign. We’re excited about the opportunities we see in the market as the peer-to-peer industry continues to cement itself as a part of the mainstream financial services. We look forward to seeing further growth and being able to fill a vital gap in financing whilst offering investors access to competitive interest rates secured against tangible and stable assets.”
Commenting, David Newton, Kersfield said:
“The option of peer-to-peer finance was extremely attractive as it is quicker, more flexible and often with better commercial terms than traditional lenders. We have also found banks unwilling to lend in regional cities despite there being strong residential markets, such as the much sought after Clifton area of Bristol where Burwalls is located. Wellesley understands these positive fundamentals, whereas most traditional lenders have not. We would certainly consider using peer-to-peer finance as the funding vehicle for future projects.”
“As the most prestigious residential development to come to the market in Bristol for some time, as with our other developments in the area, we expect to achieve record prices. We are likely to sell the entire scheme off plan, having already received a lot of unsolicited interest.”