What happens if a borrower defaults?

What happens in default?

If a loan falls into default, due to a breach in the loan agreement, Wellesley Finance Plc

would take charge over the asset. In the case of a property security, we would appoint an

LPA Receiver to seek to liquidate the asset and recover the sum of the debt and fees

owed. Wellesley Finance Plc does not lend over 75% of the loan to value of loan collateral

to increase the probability of full recovery of a loan.

What does a lender have to do if a borrower defaults?

Wellesley Finance Plc will manage the enforcement process on behalf of investors. All

loan security is held by Wellesley Security Trustees Limited. The beneficiaries of

Wellesley Security Trustees Limited are the investors in Wellesley & Co.

What is the risk of default?

As will all Peer to Peer lenders, the biggest risk posed to investors is if one of their

borrowers does not repay their loan.

The spread of risk means that in the case of default only a proportionate amount of the

lenders investment will have been affected.