Wellesley & Co peer-to-peer savings

Wellesley & Co is a peer-to-peer savings provider that lends out savers’ money to residential property investors. The mortgages provided are only available to cover up to 50% of a property’s value and there is a provision fund to protect savers should borrowers default.

If you are looking for a way to boost your savings returns, a peer-to-peer company such as Wellesley & Co could be ideal. You can put in as little as £10 to start with or invest as much as you want.

    • Provider/Product name 2 Year Term

      Wellesley & Co

      2 Year Term

    • Expected annualised rate after fees and bad debt 2.35% fixed
    • More details

      You lend to… Property developers. All lending is secured against property
      When do I earn interest? Interest is earned straight away when you select a fixed term, you even earn interest before your funds are matched
      Can I withdraw money before term ends? Yes. There is no fee, however the interest rate will be re-aligned to fairly reflect how long you lent your funds for. This is available subject to liquidity
      Provision fund? Yes, £4,168,663 as of June 2016
      How much can I save? From £10, with no maximum
      Founded in 2013, platform launched in November 2013

    • Go to site

    2016 SUPERS

    Winner of the Best 'Alternative' Savings Account Provider

    Great for
    No lender fee applies
    Start earning interest before your money is successfully matched
    But be aware that
    Early withdrawal is not guaranteed - ensure you can fix your savings for the specified term. If you think you'll need access, look for a shorter term or even monthly access products
    Your savings are not protected by the FSCS compensation scheme

    Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment as it is not protected by the Financial Services Compensation Scheme, although many lenders do offer their own compensation packages. Please first read our peer-to-peer guide below to see if this product is right for you.

    • Provider/Product name 1 Year Term

      Wellesley & Co

      1 Year Term

    • Expected annualised rate after fees and bad debt 2.25% fixed
    • More details

      You lend to… Property developers. All lending is secured against property
      When do I earn interest? Interest is earned straight away when you select a fixed term, you even earn interest before your funds are matched
      Can I withdraw money before term ends? Yes. There is no fee, however the interest rate will be re-aligned to fairly reflect how long you lent your funds for. This is available subject to liquidity
      Provision fund? Yes, £4,168,663 as of June 2016
      How much can I save? From £10, with no maximum
      Founded in 2013, platform launched in November 2013

    • Go to site

    2016 SUPERS

    Winner of the Best ‘Alternative’ Savings Account Provider

    Great for
    No lender fee applies
    Start earning interest before your money is successfully matched
    But be aware that
    Early withdrawal is not guaranteed - ensure you can fix your savings for the specified term. If you think you'll need access, look for a shorter term or even monthly access products
    Your savings are not protected by the FSCS compensation scheme

    Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment as it is not protected by the Financial Services Compensation Scheme, although many lenders do offer their own compensation packages.  Please first read our peer-to-peer guide below to see if this product is right for you.

Wellesley & Co peer-to-peer savings guide

Most peer-to-peer companies lend money out to individual consumers or businesses. With Wellesley & Co, your investment is secured against residential property instead.

How does it work?

The company chooses small to medium-sized residential property investors looking to buy rental properties, and then matches them with savers looking for market-beating returns.

The average deposit of between £10,000 and £15,000 is typically split between three properties. Account terms range from six months to five years, while the interest rates on offer vary dependent on the term you choose.

You can invest from £10 upwards and there is no maximum investment limit.

What are the risks?

Wellesley & Co limits the risk to savers by only offering mortgages for up to 50% of an investment property’s value. It also carries out credit checks on the property investors taking part.

The properties will be sold at auction to retrieve savers’ money should anything go wrong, while Wellesley & Co also has a provision fund that will pay out if an investment fails.

This is held in trust by an independent third party and currently amounts to double the sum needed to reimburse its customers (based on a default rate of 2%).

You do not, however, qualify for Financial Services Compensation Fund protection, meaning that you could lose your money should the company go bust.

Comparing savings accounts

If you want to maximise your returns, it is vital to compare savings accounts before choosing one and to check regularly that your existing account is not leaving you out of pocket.

Browse hundreds of savings accounts, including peer-to-peer plans, to find your perfect savings match at MoneySuperMarket.

 

 

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