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 choosey 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.
Past & Future Performance
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.
This is our historic record and there is no indication that this should be different in the future.
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.
For more information about what you should consider before investing via a peer-to-peer platform please read our Mini Guide to P2P Lending.