The P2P Lending Sites That Spread Your Money Across Every Loan
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?”
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:
- RateSetter*, personal loans, secured business loans and property development loans.
- Growth Street*, secured business loans.
- Lending Works*, prime personal loans.
- Assetz Capital*, secured business and property loans.
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).
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.
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*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.