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Compare Peer to Peer Lending

In the years since the financial crisis, banks have restricted access to credit and cut rates for savers. Peer-to-peer sites are designed to bypass the banks and solve both of these problems at the same time.

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Peer to Peer Lending

Provider
Account
Notice
Interest Paid
Min Deposit
Apply
Investment is through Peer-to-Peer loans secured against property. Capital at Risk.
12.0%
6 months - 5 years (Fixed)
Monthly
£5,000
Investment is through Peer-to-Peer loans secured against property. Capital at Risk.
8.50%
6 months - 5 years (Fixed)
Monthly
£5,000
7.00% p.a is a targeted rate. The actual rate will depend on the performance of the P2P loans which the funds are lent against.
7.00%
Up to 3 years
Monthly
£100
Investment is through Peer-to-Peer loans secured against property. Capital at Risk.
6.50%
6 months - 5 years (Fixed)
Monthly
£5,000
Investment is through Peer-to-Peer loans secured against residential property.
3.75%
Fixed term for 3 years
On Maturity
£100
Your interest rate will track LIBOR (London Interbank Offered Rate).
3.43%
Fixed term for 3 years
On Maturity
£100

Landbay 3 Year Fixed Rate Loan

Landbay
  • Simple rate of interest is 3.69% pa.
  • The total rate equals 3.75% pa assuming auto reinvestment of all interest over a 1 year period.
  • Your rate of interest could be fixed for a period of up to 5 years before you automatically switch to a variable rate.
  • All lending is secured on property - LandBay do take a charge against each property they lend on. If the loan is not repayed this can be repossesed and sold to cover the amount of the loan outstanding.
  • Early redemption is possible by selling your investment to another investor. However, this can only occur if there is a willing buyer.
  • Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.

Landbay 3 Year Tracker Loan

Landbay
  • Your simple rate of interest is 3.00% pa above LIBOR* (London Interbank Offered Rate).
  • When LIBOR changes, your Tracker Rate changes too.
  • *3–Month LIBOR, repriced on a quarterly basis. Last repriced on 15th September 2016 at 0.38% pa. The total expected rate equals 3.43%pa assuming auto reinvestment of all interest over a 1 year period.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.

Proplend P2P Tranche A (0-50% LTV - Low Risk)

Proplend
  • All lending is supported by a 1st legal charge on income producing commercial property
  • Rates are fixed for the duration of the loan term and vary from Loan to Loan
  • Principal paid back on maturity
  • Loan terms from 6 months to 5 years
  • Lenders are in control and choose which Loan Requests to lend to, which ‘tranche’ to lend into and how much to lend
  • Each loan is broken into ‘tranches’ based on Loan to Value ranges of the supporting property
  • The higher up the LTV range (the higher the tranche) the higher the interest rate earned by the Lender
  • Proplend retains 6 months’ worth of interest from the gross loan to cover lenders should a borrower not make a monthly payment
  • Early redemption is possible by selling your Loan to another Proplend Lender, however this can only occur if there is a willing buyer
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FINANCIAL SERVICES COMPENSATION SCHEME (FSCS).
  • Peer-to-Peer lending can offer potentially attractive returns however your capital is at risk and interest payments are not guaranteed if the borrower defaults.

Proplend P2P Tranche B (51-65% LTV - Medium Risk)

Proplend
  • All lending is supported by a 1st legal charge on income producing commercial property
  • Rates are fixed for the duration of the loan term and vary from Loan to Loan
  • Principal paid back on maturity
  • Loan terms from 6 months to 5 years
  • Lenders are in control and choose which Loan Requests to lend to, which ‘tranche’ to lend into and how much to lend
  • Each loan is broken into ‘tranches’ based on Loan to Value ranges of the supporting property
  • The higher up the LTV range (the higher the tranche) the higher the interest rate earned by the Lender
  • Proplend retains 6 months’ worth of interest from the gross loan to cover lenders should a borrower not make a monthly payment
  • Early redemption is possible by selling your Loan to another Proplend Lender, however this can only occur if there is a willing buyer
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FINANCIAL SERVICES COMPENSATION SCHEME (FSCS).
  • Peer-to-Peer lending can offer potentially attractive returns however your capital is at risk and interest payments are not guaranteed if the borrower defaults.

Proplend P2P Tranche C (66-75% LTV - High Risk)

Proplend
  • All lending is supported by a 1st legal charge on income producing commercial property
  • Rates are fixed for the duration of the loan term and vary from Loan to Loan
  • Principal paid back on maturity
  • Loan terms from 6 months to 5 years
  • Lenders are in control and choose which Loan Requests to lend to, which ‘tranche’ to lend into and how much to lend
  • Each loan is broken into ‘tranches’ based on Loan to Value ranges of the supporting property
  • The higher up the LTV range (the higher the tranche) the higher the interest rate earned by the Lender
  • Proplend retains 6 months’ worth of interest from the gross loan to cover lenders should a borrower not make a monthly payment
  • Early redemption is possible by selling your Loan to another Proplend Lender, however this can only occur if there is a willing buyer
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FINANCIAL SERVICES COMPENSATION SCHEME (FSCS).
  • Peer-to-Peer lending can offer potentially attractive returns however your capital is at risk and interest payments are not guaranteed if the borrower defaults.

Assetz Capital Green Energy Income Account

  • 7.00% p.a. target gross return, capped and protected by a Provision Fund Equity capital required is provided by the borrower, not the investors 3-year loans to projects but investors can exit account earlier via the aftermarket, subject to demand from other investors
  • Automatic inclusion in a provision fund intended to prevent delays or losses
  • Long-term government backed projects with government contractual subsidies
  • Security is taken on all loans in the account (maximum loan-to-value is 71%).
  • Simple and easy online access
  • Lend from as little as £100
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services 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..

Peer to Peer Lending Explained

 

 

What is peer-to-peer lending?

Peer-to-peer websites (P2P) act as introducers between borrowers looking for credit and savers or investors looking for better returns on their deposits. By sidestepping the banks in the middle, this enables peer-to-peer sites to offer better terms for both parties.

This will be of particular interest to savers, who have seen the rates on traditional savings accounts plummet since the onset of the financial crisis.

How does peer-to-peer lending work?

Peer-to-peer websites keep a tight control on where savers’ funds are invested by undertaking stringent credit checks on all borrowers. Once a borrower is accepted, their case is profiled by risk, which determines the interest rates they will be charged.

Savers have plenty of options available to them. They can choose how much they want to lend, who they wish to lend to, and how long to lend for.

Most peer-to-peer platforms allow savers to automatically spread their funds across a range of borrowers and risk profiles to create a mid-range return. Some sites have decided to simplify this by offering a fixed-rate bond, which reflects these mid-range conditions.

Some sites allow savers to customise their investments, so you can opt for higher risk options with high-return, or lower-risk options with lower returns.

Savers will still be taxed at the normal rate on any interest they earn from peer-to-peer investments, though the Government has held a consultation about how to bring peer-to-peer funds inside the ISA bracket.

What are the risks involved?

The main risk with peer-to-peer lending is that funds are not protected by the Financial Services Compensation Scheme (FSCS) in the same way that standard deposits are.

The FSCS protects consumers by insuring the first £85,000 per person per financial institution if a bank goes bust. Peer-to-peer funds are not protected in this way, which makes this a risk venture.

However, peer-to-peer websites do have mechanisms in place to alleviate risk. Some sites will spread investors’ money across many different borrowers to reduce the impact of a default upon any one investor. Some will allow savers to select a below-average risk profile. And most sites now have a fund in place to absorb a percentage of any losses.

If a peer-to-peer site goes bust, lending agreements should still theoretically remain in place, but it could become a trickier process to ensure that repayments are maintained.

Is peer-to-peer lending regulated?

The sector is regulated by the Financial Conduct Authority. So, if peer-to-peer sites wish to become legitimate, they must follow a set of safety standards and have contingency plans in place in case anything goes wrong.

The regulator also ensures that firms do not hoodwink less experienced investors by downplaying the risks. It’s imperative that savers know the risks before they put forward their cash.

If you’re disillusioned with the rates you are receiving on your savings, it may be worth considering whether you’re prepared to take a leap of faith into a relatively new industry to see if you can get the kind of returns that you’re looking for.