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We’re very serious when it comes to credit risk

That’s why we only offer secured lending, we carry out credit and other checks on prospective Borrowers and their security to ensure that they meet our credit criteria. The maximum Loan to Value (LTV) ratio that we permit is 60% and the value is assessed at a forced sale price* rather than market price. This approach is fundamental to reducing risk for our Lenders

Default Record 

 

2013 2014 2015 2016  2017
Default Value £0 £0 £0 £0 £0
Default % 0% 0% 0% 0% 0%
Number of Late Interest Payers 0 0 0 1 3
Late Interest Payer % 0% 0% 0% 0.27% 1.53%

Definitions and notes

  • Default Value – the amount of money lost by Lenders in the calendar year
  • Default % – the amount of money lost by Lenders in the calendar year as a % of outstanding loan book at year end
  • Number of Late Interest Payers – the number of loans with interest remaining unpaid 14 days after the due date at the year end
  • Late Interest Payer %  – the value of loans with interest remaining unpaid 14 days after due date as a % of outstanding loan book at year end.

Notes:

  • If late interest is subsequently paid in full, it will not show as late at year end
  • Two late interest payer loans from H1 2017 were consolidated into one loan in H2 2017.

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

We do not have enough default data to determine expected rates of default.

Source: Folk2Folk

 Read about how we have managed defaults. 

* Forced sale price: The valuation we use is not an open market valuation, but a valuation based on the assumption that contracts for sale are exchanged within a 60-day period.  This type of valuation typically gives a lower value than an open market value.