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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 2018 (end of Oct)
Lender Losses Value £0 £0 £0 £0 £0 £0
Lender Losses % 0% 0% 0% 0% 0% 0%
Number of Defaults 0 0 0 1 3 3
Default % 0% 0% 0% 0.27% 1.53% 1.99%

Definitions and notes

  • Lender Losses Value – the amount of money lost by Lenders in the calendar year
  • Lender Losses % – the amount of money lost by Lenders in the calendar year as a % of outstanding loan book at end of calendar year
  • Number of Defaults – the number of loans in default at end of reporting period
  • Default %  – the value of loans in default as a % of outstanding loan book at end of reporting period

Notes:

  • If late interest is subsequently paid in full, it will not show as a default at end of reporting period
  • 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.