The Peer-to-Peer lending Sector is growing rapidly providing both investors and borrowers with a genuinely innovative solution. The sector has already lent over £500 million to consumers since April this year, which is the fastest rate of growth in the sector’s history.
This burgeoning industry works by matching borrowers in need of funding to lenders that are prepared to invest their funds. Unique features of Peer-to-Peer platforms see lenders receive higher rates of return than mainstream lenders currently offer.
It was surprising to hear that research from The Yorkshire Building Society stated that fewer than one in five, or 18% of financial advisers, have or would invest their own money into Peer-to-Peer lending platforms. This poses the question to whether they fully appreciate the pros and cons of the different models?
An Innovative Model
Wellesley & Co offers a range of products to suit your investment criteria which could see you earn up to 6.32% on your funds per annum. Although not covered by the Financial Services Compensation Scheme, investments made through the Wellesley platform are asset backed, primarily but not exclusively by property. This means, in the event of a loan default, the asset can be sold to seek to recover any lost funds incurred by the lender. Security does not guarantee the full return of invested capital. We further mitigate the risk by spreading investors’ funds across our entire loan book to give each investor the maximum level of diversification possible at any given time.
Wellesley & Co offers both fixed and variable rates of return and offers the option of receiving interest either as a monthly income or on maturity of the term. Our quick three step registration process takes a matter of minutes and will give you access to our full range of products.
Ensure You Are Aware Of The Associated Risks
As a Peer-to-Peer lending platform we ensure that we are transparent with the associated risks involved when investing. It is vital to be aware that investments made through Wellesley will see your capital at risk.
However, looking at the current investment options on the high-street, it is evident that choices are limited for people seeking a decent return on their funds. This may be time for you to look at an alternative route for you to satisfy your needs. However, before you do, it is key to research all available options before committing.
If you would like more information on investing through Wellesley, please contact [email protected] or telephone our London-based Customer Service Team on 0800 888 6001.