ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 29, 2017 10:40:49 GMT
Wellesley has anoounced they are making major changes to the platform in pursuit of FCA full authorisation and have paused lending until implemented. Key points ... interest paid at term rather than monthly, provision fund stopping, switching to true P2P model with Well no longer acting as lender & borrower, though it will continue to prefund loans before novating these to lenders. New property bond, first charge, senior secured, listed, ISA eligible, will fund Well initial lending and allow lenders to have monthly interest, fixed terms and security against residential property. Cant be used to fund first loss on lending. www.altfi.com/article/2995_peer_to_peer_lender_wellesley_co_publishes_financial_results_and_loan_book_cfo_resigns |
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Greenwood2
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Post by Greenwood2 on May 29, 2017 12:14:15 GMT
Doesn't look like 'Provision Funds' generally are going to survive FCA approval.
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Post by gadget on May 29, 2017 17:52:32 GMT
Doesn't look like 'Provision Funds' generally are going to survive FCA approval. Good thing too IMHO. The whole point of P2P is that it's not a bank: your capital is at risk. "Provision Funds" are an attempt to imply that the risk doesn't exist or is so small that you can ignore it. It was only really justifiable because of the poor way HMRC dealt with defaults (ie not being able to net against interest earned) but that's been fixed now. PS Just read the linked article: 55% of loans are in "technical" default. 34% non performing. These facts are noted without comment.
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r00lish67
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Post by r00lish67 on May 29, 2017 18:20:27 GMT
Doesn't look like 'Provision Funds' generally are going to survive FCA approval. Good thing too IMHO. The whole point of P2P is that it's not a bank: your capital is at risk. "Provision Funds" are an attempt to imply that the risk doesn't exist or is so small that you can ignore it. It was only really justifiable because of the poor way HMRC dealt with defaults (ie not being able to net against interest earned) but that's been fixed now. PS Just read the linked article: 55% of loans are in "technical" default. 34% non performing. These facts are noted without comment. Wow, that brings a whole new meaning to their website tagline "Do something interesting with your money", in the same sort of way that swimming within a circle of great whites or bungee jumping without a rope is interesting.This said, I'm genuinely glad to see they're apparently intent on more transparency and shaking things up.
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GeorgeT
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Post by GeorgeT on May 31, 2017 11:50:37 GMT
Wellesley suspends P2P lending products until Quarter 3, 2017
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Post by Financial Thing on Jun 1, 2017 17:35:19 GMT
Wellesley has anoounced they are making major changes to the platform in pursuit of FCA full authorisation and have paused lending until implemented. Key points ... interest paid at term rather than monthly, provision fund stopping, switching to true P2P model with Well no longer acting as lender & borrower, though it will continue to prefund loans before novating these to lenders. New property bond, first charge, senior secured, listed, ISA eligible, will fund Well initial lending and allow lenders to have monthly interest, fixed terms and security against residential property. Cant be used to fund first loss on lending. www.altfi.com/article/2995_peer_to_peer_lender_wellesley_co_publishes_financial_results_and_loan_book_cfo_resignsSo the bond may have first charges on property, but you are buying a share listed on a stock exchange, so technically, if Wellesley went pop, the bond would go to zero and your money would be lost correct?
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Post by wellesleyco on Jun 2, 2017 7:11:02 GMT
In relation to the question above:
The Wellesley Property Bond is issued by Wellesley Secured Finance Plc. Wellesley Secured Finance Plc 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.
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kaya
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Post by kaya on Jun 2, 2017 7:22:08 GMT
Its a bit weird. First they are offering enhanced rates for existing lenders to encourage reinvestment, and now they are barring that very same type of reinvestment.
Can you still early-exit if desired?
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jaswells
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Post by jaswells on Jun 8, 2017 12:05:12 GMT
Wellesley does not get allot of love on these boards but I would like to add my thoughts on them (only positive).
1) Wellesley quite rightly came under huge criticism for their lack of transparency which made it difficult to have faith your investments were being used wisely. This year they have made massive improvements in providing information on their loan book, difficult cases and updates on the provision fund. They are moving in the right direction here and this generates confidence.
2) They are one of the few p2p sites that appear to now be a profitable entity.
3) On face value they seem to have employed a quality team who know their stuff. From risk management to marketing the impression is the key personnel are of a high calibre.
4) They have learnt from their mistakes. They are adapting their loan book objectives and customer offerings based on the market and business needs.
5) Customer services are exemplary. I have never had anything other than quick and helpful responses to sometimes difficult questions.
6) Payments have always been paid correctly and on time. The customer interface is clear and easy to use.
So there you go. Wellesley is one of the older p2p sites and has faced challenges and criticism. However, it is adapting as we are starting to see some of the more fashionable p2p sites face their own difficulties.
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shimself
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Post by shimself on Aug 3, 2017 14:42:45 GMT
... 3) On face value they seem to have employed a quality team who know their stuff. From risk management to marketing the impression is the key personnel are of a high calibre. ... 55% default rate. Spinning the bottle could do better
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Post by misotu on Aug 5, 2017 22:13:29 GMT
55% defaults? Seriously?
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Post by WestonKevTMP on Aug 6, 2017 6:47:52 GMT
According to AltFi; www.altfi.com/article/2995_peer_to_peer_lender_wellesley_co_publishes_financial_results_and_loan_book_cfo_resigns" Wellesley has lent a cumulative total of £476m, spread across 65 loans. Of those 65 loans, 36 (55 per cent) are in technical default, in that they have breached a covenant. 22 (34 per cent) of the entire loan book have breached the contractual payment terms and can be classed as non-performing. AltFi Data assisted with this analysis.
However, Wellesley is only forecasting a loss on 10 of its 65 loans, and for each of the loans in question it has funds set aside from its provision fund, equal to a total amount of a little under £2m."
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