BLEND Network Review

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By on 13 April, 2018 | Read more by this author

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Below, from one of 4thWay's experts, is the BLEND Network review. Blend is a P2P lending platform focused on development loans and lending to businesses secured against real property (real estate), with good-looking interest rates and attractive looking security.

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BLEND Network Quick Expert Review

Interest rates look attractive, but more time required to test this service

BLEND Network is new, having started in 2017. We have not yet been provided with enough evidence that the key in-house team has the skills and direct experience required to assess the development, short-term (bridging) and property-secured business loans that BLEND Network does, so at present it will be relying on building a future record to prove itself.

BLEND Network has been open with us about almost all aspects of its business and yet we need to see more details about the specifically relevant experience of the key people. At this early stage in its life, statistics to help lenders see their record don’t have much meaning, but we hope that BLEND will start to regularly produce and update these in the coming months.

Loans are mostly to fund property developments, including refurbishments, and in its short life so far there have been no late payments or bad debts.

BLEND Network focuses very much on the quality of the property security as opposed to the quality of the borrower. This is typical of a lot of property lending. In loans such as these, lenders might normally expect there to be a number of bad debts among the loans they make, but they should generally expect that all or most of those bad debts will be recovered, with extra interest, over time.

BLEND has set itself tighter criteria compared to most other property P2P lending sites in terms of the amount that can be borrowed versus the property valuation. For example, borrowers can borrow a maximum 65% of the hoped-for future sale price when it comes to developments, or just 65% of the current property valuation for other loans.

BLEND also takes other non-property security, such as possessions owned by a business. But it is the substantial property security that provides the biggest protection against losses.

Appropriately, development loans are offered to developers in tranches, so that they get a chunk of the loan first, and then only after a monitoring surveyor has assessed the work's progress is the developer allowed the next tranche.

With criteria such as these, if all goes according to plan, BLEND Network should be hoping for very low bad debts. The average interest rates, should also, then, turn out to be attractive for the risks involved.

It is nice to be told that, currently, the CEO lends around 5% in every single loan.

We have little information on BLEND’s financial health. It is very new, so we expect it will take some time before it becomes profitable.

You can choose your own loans or spread your money across multiple loans automatically. The minimum you can lend in each loan is £1,000.

One unusually flexible feature is that manual lenders can question both the borrowers themselves and ask BLEND about the loans too.

There are few loans to find, at present, and they are snapped up quickly when re-sold on the resale market. This means that it could take a while to spread your money across loans, although BLEND will, if you want, automatically allocate a portion size set by you when loans become available.

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.

Journalists, bloggers and specialists writing for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

Our service is free to you. We don't receive commission from the above-mentioned companies. We receive commission from some other P2P lending companies when you click through from our website and open accounts with them. This doesn't affect our editorial independence. Read How we earn money fairly with your help.

 

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Today’s average interest rates

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Showing average expected interest rates for individual lenders after fees and bad debts if you lend today.
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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.

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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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