Wellesley & Co Ltd

Wellesley announces largest ever peer to peer loan

RNS Number : 7690D
Wellesley & Company Limited
02 April 2014

Wellesley & Co.


Wellesley makes peer to peer history with largest ever loan


·      £8.3 million loan secured on 27 prime property assets.

·      Twice the size of previous largest UK peer-to-peer loan.

·      Auto Re-Matching tool to be launched.

·      Wellesley is currently the UK's fastest growing peer-to-peer lender.


Wellesley & Co ('Wellesley'), the UK's fastest growing asset-backed peer-to-peer lender, has made industry history by completing the largest ever loan to be made on a peer-to-peer platform.

The £8.3 million bridging loan - which is more than twice the size of the previous largest peer to peer ('P2P') loan - is secured on 27 properties situated in several South London boroughs and Essex (all inside the M25).

This will take the loans funded by Wellesley to more than £20m since its inception in late November 2013, making Wellesley the fastest growing peer-to-peer lender, with growth in loans and funds lent exceeding 74% in February.

In another industry first, Wellesley has announced that it will introduce an innovative weekly auto re-matching function on its platform. Currently, rather than requiring lenders to pick their own loans (often with limited information), all loans on the platform are proportionately allocated across all lenders, allowing for the greatest amount of diversification possible. In addition, the auto re-matching system means that the portfolio will automatically be spread across all lenders each week as new loans come onto the platform, resulting in portfolio diversification improvement as the Wellesley loan book continues to grow.

Wellesley has a unique secured lending model, using their own money initially to make loans to borrowers and then assigning loans to lenders via their easy-to-use platform. This delivers certainty of funding for borrowers. Wellesley also retains a part of every loan, sharing the risk with lenders. In the event that a loan were to default and the security was insufficient to cover the loan, Wellesley would lose its investment first. If other investors still suffer a loss then they could apply for reimbursement from Wellesley's discretionary provision fund.

Unlike other P2P lenders, the Wellesley platform offers fixed rate returns, at lower risk. The firm pays interest to its lenders immediately, regardless of whether those funds are lent immediately. The site offers annual rates of 3.75% to 7.5% with no fees. Unlent funds are held separately from the Wellesley balance sheet and are not used for any purpose other than making loans.

Graham Wellesley, Founder and Joint CEO & Chairman, said:

"We are delighted to announce the largest P2P loan to date. Our unique model combines the best of old fashioned banking traditions - trust, prudence, knowing our customers - with the speed and convenience of the Internet.

"Unlike other P2P lenders, all of our loans are secured and we always invest our own money in every loan. As a result, we lose our money first if any loan defaults. For those whose loans we approve, we provide certainty of funding; for those who invest with us, we pay interest immediately on their funds.

"The completion of this £8 million loan - the largest UK P2P loan - marks a decisive shift in the landscape of our industry and confirms Wellesley as the fastest growing P2P lender in the UK. We're excited about the opportunities this offers our customers and look forward to announcing more deals that will earn them higher risk-adjusted returns."

2 April 2014


Instinctif Partners

020 7457 2020

Helen Tarbet

07825 609 737

Nick Woods

07989 855 474

Tom Drummond

07583 864 272


Notes to Editors

Wellesley & Co is a UK-based peer-to-peer lending platform which makes asset-backed loans secured particularly on property. Since its inception in late November 2013 the company has grown considerably and currently has a loan portfolio of approximately £20m, spread proportionately across all lenders on the platform.

Wellesley & Co was designed to made peer-to-peer lending a safer, more convenient and more appealing product for the ordinary lender. Uniquely, the firm lends its own funds directly to its borrowers in the first instance, before re-assigning the rights and benefits of the loan, so that the contract for repayment exists between Wellesley and its borrowers. The company also proposes to mitigate risk further by spreading its entire loan portfolio over all lenders on its platform, automatically re-matching this spread on a weekly basis as new loans come on. Wellesley aims to provide consistently higher risk-adjusted returns to its customers over the economic cycle.

Wellesley & Co's Directors have spent the majority of their careers working within regulated financial services companies. They include Graham Wellesley (Joint CEO & Chairman); Anthony Fane (Joint CEO); Andrew Turnbull (Director); Paul Cragg (Director & Chairman of the Credit Committee); and Lorenzo Naldini (Director).



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