Risk Management

What’s the risk?

Peer to peer lending does not fall under the Financial Services Compensation Scheme (and is not a savings product) and ultimately, a Lender’s investment is at risk.  We take the following steps to try to manage risk:  

  • We are FCA Regulated - Folk2Folk is authorised and regulated by the Financial Conduct Authority (FRN 720867)
  • We work to the highest standards - Folk2Folk Management, supported by their advisors (Bovills) actively review the developing P2P regulatory environment and we are in regular correspondence with the Financial Conduct Authority in respect of how the P2P market is regulated and Folk2Folk’s requirement to meet current and future changes to the legislation that is being developed to cover this growing market
  • Your money is secured against bricks and mortar - we take steps to protect your money by securing it with a mortgage over property or land
  • We only lend up to 60% of the value of the security – we use a maximum 60% Loan to Value (LTV) ratio to calculate how much we will lend to a Borrower
  • We are very particular about our Borrowers – we get to know as much as we can about our Borrowers and take an holistic view of the person or business/project. This way we feel we know the full picture and are better informed about any potential risks. We’re choosy but fair and turn down Borrowers if we don’t feel comfortable.

Before taking out a Folk2Folk loan it’s important to familiarise yourself with our Lender Terms & Conditions.  

Folk2Folk Default Record



  • Default Value - being the amount of money lost by Lenders
  • Default % Total - being the amount of loss suffered by Lenders as a percentage total loans written
  • Default % Recent - being the amount of loss suffered by Lenders in 2016 as a percentage of outstanding loan book
  • Number of late interest payers - being the number of loans with interest remaining unpaid 14 days after the due date.
  • Late interest payer % Total - being the value of loans with interest remaining unpaid 14 days after due date as a % of total loans written.
  • Late interest payer % Recent - being the value of loans with interest remaining unpaid 14 days after due date as a % of outstanding loan book.

These figures are updated quarterly for loan book value and total loans written or immediately in the case of any default or late interest payer.

These figures relate to the past and past performance is not a reliable indicator of future results.


For more information about what you should consider before investing via a peer-to-peer platform please read our Mini Guide to P2P Lending.


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Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    Initially I borrowed money through Parnalls Solicitors in 2011...
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