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LTV
Mar 28, 2014 12:59:47 GMT
Post by wellesleyco on Mar 28, 2014 12:59:47 GMT
Dear MONEY, thank you very much indeed for raising this point.
I believe that the reference to 63% was a previous average LTV across all of our loan book and this can be monitored on this page of our site: www.wellesley.co.uk/how_it_works/lending_statistics. As you will see, the average is 60% today.
Our policy is to lend up to 75% LTV however the norm is much lower than this value. In truth, we would only consider doing a loan of 75% LTV if it fitted a very stringent criteria. For example, it would need to be a prime property within M25 which is of an average size. Furthermore it would need to be to a borrower that we had a high level of confidence in.
Thank you for identifying the mistake in the 'What are the risks' section of the site, we will have that updated today and apologies for any confusion caused.
Incidentally, it may be worth pointing out that the effective LTV across the board is often much less than the stated LTV on the basis that Wellesley & Co has its own funds in every loan too and as a result of our funds bearing the first loss in the event of default.
If you have any further questions please do not hesitate to come back to us on this post.
Kind regards
Wellesley & Co
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LTV
Mar 29, 2014 8:09:36 GMT
Post by wellesleyco on Mar 29, 2014 8:09:36 GMT
MONEY, thank you again for spotting this discrepancy, we will change it to 25% over the course of the weekend.
Have a great weekend.
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