Peer-to-Peer FAQs

Peer-to-Peer Product Coming Soon

What is changing?

From the 31st May 2017, Wellesley will not be accepting any additional investment into the existing Peer-to-Peer lending product. Customers with products maturing before the 31st May will be able to re-invest their funds prior to the Peer-to-Peer lending product being removed from the site. Wellesley & Co will be launching its new Peer-to-Peer lending product in the coming months, and the new product will continue to service our customer base in the future.

Why is the Peer-to-Peer lending product being removed from sale?

Wellesley is currently working towards full authorisation by the Financial Conduct Authority (FCA). Presently we have sufficient lender funds available which allows us to pause the existing Peer-to-Peer product whilst we will be make a few changes to our product range over the coming months.

How does this affect me and my existing investment?

As a Wellesley investor, your existing Peer-to-Peer lending investment will remain under its current terms until its contractual maturity. This means that it does not affect your existing investments and you do not have to take any action on your account.

Can I make new investments through Wellesley?

Yes, our other products are still available for investment. The new Peer-to-Peer product will be launched in the coming months. To view our other products on offer, Click Here.

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. Investment through Wellesley is not covered by the Financial Services Compensation Scheme.

What date will the Peer-to-Peer lending product no longer be available for investment?

The Peer-to-Peer lending product will not be accepting any additional investment from the 31st May 2017.

How the risks to my investment changed?

The temporary removal of the Peer-to-Peer product will not affect the way in which we service the loans which your funds are matched to. There will be no changes to the way in which your funds are managed and Wellesley will continue to provide you with a high level of service.

To take a look at how we manage the risks associated with Peer-to-Peer lending, Click Here.

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.

Do I need to do anything?

You do not need to anything, your existing Peer-to-Peer lending investments will continue to be serviced as usual.

Does the change affect money in my holding account?

No, funds sitting in your holding account can be withdrawn or invested into another one of Wellesley’s investment products.

Will I continue to earn interest at the same rate?

You will continue to earn interest at the same rate and we will continue to service your existing investments as usual until the maturity of your lending terms.

Who can I speak to at Wellesley about this?

Our Customer Service team is available between 8.30am to 5.30pm Monday to Friday to help with any questions you may have.

You can contact them either by telephone on 0800 888 6001 or by email at info@wellesley.co.uk.

Peer-to-Peer Lending FAQs

Peer-to-Peer lending at a glance

Wellesley is a leading alternative finance platform that enables investors to make healthy returns on their capital in the form of attractive interest rates, by connecting them with creditworthy borrowers seeking a competitive source of funding.

How are funds used?

Wellesley offers asset backed loans to small businesses and individuals. Assets that the loans are secured against include tangible assets primarily but not exclusively limited to residential property.

Wellesley matches investor’s funds against loans made by Wellesley Finance. All loans submitted to Wellesley Finance are scrutinized by the Wellesley Business Acceptance Committee prior to being accepted onto the loan book.

Minimum Investment

The minimum you can invest is £10, there is no maximum.

Tax treatment

Yes, as a lender you will have to pay tax on the interest your make. Tax treatment depends upon your individual circumstances and may be subject to change in the future.

Wellesley does not provide any advice or guidance in relation to tax or otherwise and therefore we strongly recommend that you consult an independent financial advisor or tax advisor if you are unsure as to what your tax obligations are.

It is your responsibility to ensure that any tax liabilities which you incur (though interest earned) are paid to the relevant tax authority.

Tax statement are available to download online via your Wellesley account. Wellesley do not issue paper statements.

Wellesley pays gross interest on all Peer-to-Peer lending terms.

Who can invest in Peer-to-Peer lending?

To invest you must be 18 years or older and a UK resident, with a UK bank account. UK companies can also invest with Wellesley.

If you are a Non UK resident and hold a UK bank account, you are eligible to invest on the Wellesley Peer-to-Peer lending platform. You can register for an account either online or by completing an Application Form. Please contact our Customer Service team for an application form.

It is a UK regulatory requirement that we verify your identity prior to opening your account; in order to process your account we will require you to provide documentation in order to verify your details. You will receive instruction via email detailing the documents required to verify your personal details.

Please note, our Peer-to-Peer lending product is not currently available for investment. We are therefore not accepting Non UK applications at this time. If you would like to sign up for update on our Peer-to-Peer lending product, please click here.

How do I set up an account?

Registration is completed either online here or by downloading and completing an application form. Contact our Customer Service team for an application form. Please email your completed application form by email to newaccounts@wellesley.co.uk or send it by post to:

New Accounts, Wellesley, St Albans House, 57-59 Haymarket, London SW1Y 4QX.

What is Auto-Matching?

Auto-Matching is a tool that Wellesley has created to ensure all lenders receive the maximum level of diversification possible. The Auto-Matching process runs each week matching lender funds to the entire loan book on a volume weighted basis, meaning that each lender has a proportionate amount of exposure to every loan. During the same weekly process it will rematch existing lenders allowing them to have the best diversification at that present moment in time, but also an improved diversification as the Wellesley loan book grows.

Why is some of my money un-matched?

As loans repay from the loan book and before new loans are made there will be times where some of your investment is not matched. In this situation, your funds will be held in a segregated bank account and will not be used for any other purpose. It is important to note that you will continue to earn interest on 100% of your investment, regardless of whether your funds are matched to loans or not.

Can I access my money early?

In exceptional circumstances Wellesley may be able to offer an Early Access service to lenders should they need to access their funds prior to the maturity of their Peer-to-Peer investment terms. Wellesley has absolute discretion on whether to offer Early Access to lenders and it is at all times subject to there being other lenders available to take over the loans. (Wellesley is not required to provide any explanation or justification as to why a request for Early Access has been accepted or rejected.)

All investments which the investors Early Access relates, will be subject to an administration fee (between 0% to 1% determined by the duration in the product), loss of interest and any promotional penalties. The fee (including any promotional penalties) will be fully disclosed to the investor prior to the request being finalised.

Please note we will contact you regarding your Early Access request within 5 working days, from the date the request is made.

Once your Early Access request is processed, the money to which the request relates shall be returned to your Holding Account, you will receive email confirmation once the request has been processed. Early Access requests can only be made for the full amount invested in a lending term.

If you wish to make an Early Access request, please contact our Customer Service team by email at info@wellesley.co.uk.

Are my funds covered by the Financial Services Compensation Scheme (FSCS)?

Peer-to-Peer lending is not covered by the Financial Services Compensation Scheme (FSCS). At Wellesley every loan we make is backed with security over property in the United Kingdom which could be sold in the event of a borrower defaulting.

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.

Should you have any other questions please feel free to email or call us.

Call our Customer Service team on:
0800 888 6001

(Monday to Thursday 8.30am – 5.30pm, Friday 8.30am – 4.30pm)

Investment through Wellesley & Co Limited 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 & 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 & Co Limited (No. 07981279) is registered in England and has its registered office at St Albans House, 57/59 Haymarket, London SW1Y 4QX.