The P2P Lending Sites That Spread Your Money Across Every Loan

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By on 24 April, 2018 | Read more by this author

We had a peer-to-peer lending question this week from a 4thWay user called Uriel who said:

“I've currently got accounts with RateSetter and GrowthStreet, and am thinking of where to next put my money.

“I don't like having to select investments, and prefer ‘passive' investing where the platform automatically assigns my investment across their portfolio and where the default risk is thus also spread across investors on the platform (and not just one investment). That's why I like both RateSetter and GrowthStreet, although the returns are far better in the latter.

“What other platforms would you suggest that have a good rate and allow for passive investment?”

4thWay's response

Hi Uriel

Thanks for your kind words.

You can go to this comparison page that is filtered for you to compare peer-to-peer lending platforms that automatically assign you to loans, or that offer you the option to do so.

Most of them do not do spread your risk across the entire book of live loans. The four to do that are:

All four of those have what look to me to be very favourable opinions from 4thWay's experts (see links to their reviews below).

You have other options where your money is spread around a lot, if not across all the live loans.

For example, Landbay* lenders who have lent new money over the three months at the start of this year have, on average, been spread across 16 residential buy-to-let mortgages, and that spread will increase as you lend more or re-lend repayments. That is too low a spread for, say, business loans, but a very fine beginning for mortgages where the borrowers are receiving rent.

Or you have Funding Circle, which will spread your money across at least 100 small business loans if you lend £2,000 or more, and at least 200 if you lend £4,000 or more.

All six peer-to-peer lending sites I've mentioned also offer IFISAs.

Compare peer-to-peer lending sites that offer auto-lend (table already filtered for you).

Compare peer-to-peer lending IFISAs that offer auto-lend (table already filtered for you).

Read 4thWay's:

Assetz Capital Quick Expert Review.

Funding Circle Quick Expert Review.

Growth Street Quick Expert Review.

Landbay Quick Expert Review.

Lending Works Quick Expert Review.

RateSetter Quick Expert Review.

Read The Best IFISAs Available Now.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the FSMA and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Experts, journalists and bloggers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Assetz Capital, Growth Street, Landbay, Lending Works and RateSetter, and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

One response to “The P2P Lending Sites That Spread Your Money Across Every Loan”

  1. Jonathan Shaw says:

    HNW now have an autolend option. And there’s always Bondmason and Orca.

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Today’s average interest rates

What is the “4thWay”?

There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
Learn more.

What does 4thWay do?

We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

Why use 4thWay?

4thWay® is shaped by investors, bank risk modellers and a senior debt specialist, and we're governed by our users to ensure our comparison services and research are trustworthy and complete.

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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