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23 Peer-to-Peer Property Lending Websites

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By on 1 March, 2021 | Read more by this author

You have dozens of choices when it comes to peer-to-peer property lending.

A small number of property P2P lending websites offer lending that is usually intrinsically low risk. Typically this means lending to borrowers against properties that are receiving rent. This can mean homeowner mortages and loans (although those are very rare in P2P), mortgages to buy-to-let landlords, and also mortgages to owners of commercial properties, such as tenanted shops or care homes.

At the other end of the scale, you can look for higher interest rates with potentially higher intrinsic risks. Here, you're typically looking at development lending and bridging lending. Borrowers are not receiving rent against these properties and you can often be less confident about getting all your money back.

Regardless of the type of lending, a good proportion of peer-to-peer property lending companies contain the risks using top-quality loan approval processes, by requiring valuable property security from the borrowers, through reserve funds set aside to cover expected losses and by reacting rapidly and appropriately to borrowers in difficulty.

What the peer-to-peer property lending platforms have in common

Normally you're first in the queue to get your money back if a borrower is unable to repay, and the P2P lending company needs to repossess and seel the property. In the list below, we will always make it clear when this is not the case. (Sometimes you don't want to be at the front of the queue, because being second or third means that you can earn much higher interest rates.)

Almost all property peer-to-peer lending platforms do either a) interest-only loans, where lenders get monthly interest paid to them by their borrowers and the money you lent is repaid to you at the end, or b) “bullet loans”, whereby you receive all the interest and your original loan at the end, with no payments in between.

Both of those types of loans – where you don't receive steady repayments of the money you have lent – can potentially increase your risks, but it also makes it easier for you to keep your money out on loan and earning interest. And these risks are sometimes more than offset by fantastic property security, reserve funds and other aspects.

Not all property peer-to-peer lending companies are listed in 4thWay's comparison tables with a review from one of our specialists, but we're working on it. Largely it depends on the companies providing over 100 facts, then answering our Q&As, then having gruelling interviews with us, then another Q&A with more data submissions from them, and finally background checks and other checks on our side. Not until then do they make it into our detailed comparison pages.

So here, on this page, we tell you about all of them, including the ones that haven't provided enough information for us to assess their risks and strengths.

The platforms that have passed our strict tests based on international banking standards – and therefore have been awarded 4thWay PLUS Ratings – are on top of the list. The rest are listed in order of size:

Proplend

Size, history and types of loans: Roughly £115 million of mortgages against rented residential and commercial properties since 2014. It has also started doing some bridging loans in more recent years.

Proplend's 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For A Peer-to-Peer Property Lending Account

Based on Proplend's tranche A loans where the properties are receiving rent.

Lending during the pandemic: Proplend continues to approve a reasonable number of loans.

Lender losses: Just one loan at tranche B has lost a little money through Proplend*, so that lenders have easily made substantial profits. A few loans suffered some issues during the pandemic and one or two turned bad, but these are now looking in good shape again.

Most similar to: like the peer-to-peer property lending company LandlordInvest, the majority of loans are secured against property that is receiving rent, and like CapitalStackers and Relendex in terms of stacked tranches that you can select for yourself:

What are stacked tranches?

Average loan-to-value: Proplend splits its loans into tranches for lenders. If you lend in tranche A of a loan then you have a maximum loan-to-value of 50%, which is incredibly low.

If you lend through tranche B then you sit above tranche A lenders in the stack, where the loan-to-value is a maximum 65%.

(Therefore, for tranche B, if the property is repossessed and sold for a loss of 40% , you could expect to lose around 33% of your loan, since you own the 15% between 50% LTV and 65% LTV. And 100%-40% is 60%. 65% minus 60% is 5% and your holding was 15%…Think about it.)

If you lend through tranche C then you take the slice above B's 65%, but still have a maximum of 75% LTV. Still highly respectable for rental properties, but as you would guess, “junior” debt like this significantly adds to your risks.

If you want, you can blend your property loan by lending in more than one tranche, with the lowest-risk tranche being a maximum loan-to-value of 50%, or you can take a riskier slice of the same loan higher up – up to 75% loan-to-value. So you'd lose your money first, but you also get higher interest rates.

Average rents: While we don't have the exact figure, Proplend ensures landlords' rent will easily cover the mortgage payments. Proplend also does brownfield and development property loans, which don't earn the borrower rent.

Other protections: Proplend takes three to six months' interest in advance, effectively reducing the risk of losing money overall by a modest few percentage points.

Place in the queue: Your tranche tells you your place in the queue.

Transparency: Proplend is highly transparent, sharing most facts about its people, processes and data with 4thWay.

Interest rates:

Tranche A: 6.85%

Tranche B: 7.04%

Tranche C: 6.35%

These interest rates are after fees and expected losses.

Available in an IFISA.

Who chooses loans? You can choose your own loans and tranches.

Minimum you can lend: £1,000 per loan.

Early exit: You can exit early provided other lenders have the money to buy you out.

See more of Proplend* in our comparison tables, where you can also read one of our specialist's Quick Expert Review on Proplend.

CrowdProperty

Size, history and types of loans: £120 million exclusively on property peer-to-peer lending, specifically property development and bridging loans, since 2014.

CrowdProperty's 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For A CrowdProperty Peer-to-Peer Property Lending Account

Lending during the pandemic: CrowdProperty continues to approve a reasonable number of loans.

Lender losses: No lender losses.

Most similar to: BLEND Network and Loanpad in that it just does senior bridging and development loans. “Senior” means no other lenders (such as banks) can get their money back before you do if the borrower is unable to repay, and the property needs to be repossessed and sold. As with BLEND Network, CapitalRise, Kuflink, Invest & Fund and SoMo – which all offer bridging and development only – you can choose your own loans. But, as with BLEND Network, CapitalRise, Kuflink and Loanpad, you can also spread your money across more than one bridging and development loan automatically. As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: 60.90% – or 53.20% based on the hoped-for sale price of the completed development.

Other protections: None.

Place in the queue: You're always first in the queue to recover your money if a loan goes bad, the developer has other debts to pay, and the property has to be repossessed and sold.

Transparency: CrowdProperty is now one of the most transparent and accessible peer-to-peer property lending sites, providing 4thWay with all the information and data we ask for.

Interest rates: 7.78% before losses, but no estimated loss figures are supplied. Available in an IFISA.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend: £500

Visit CrowdProperty and see more of it in our comparison tables, where you can also read one of our specialist's Quick Expert Review on CrowdProperty.

HNW Lending

Size, history and types of loans: Around £91 million, mostly in peer-to-peer property lending property, especially bridging loans, since 2014. It's also one of the rare P2P lending sites to do loans to homeowners – albeit rarely. It also does some loans secured against other assets, such as performance cars.

HNW Lending's 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For An HNW Lending Peer-to-Peer Property Lending Account

Lending during the pandemic: HNW Lending has approved few loans during the pandemic, but expects this to turn around during winter 2020/21.

Lender losses: Some few tens of thousands of pounds have been written off so far through HNW Lending*. It has arranged one loan that will lose a few hundred thousand pounds in the very near future. The total losses are very low compared to the amount lent and interest earned.

Most similar to: SoMo and Invest & Fund, in that it does peer-to-peer property bridging loans with no reserve fund, or like Assetz Capital in that you can instead choose to auto-spread your money with a reserve fund. Also similar to Kuflink in that HNW Lending takes a first loss of 5% when you use one of its auto-lend accounts. It is also most like Mintos in that it dips into homeowner loans.

Average loan-to-value: Senior loans have an incredibly low 43.3% average LTV. The maximum is sensible for these loans at 70%.

The low LTV is necessary to recover bad debts, because, while hardly any loans have been written off, quite a lot of loans are late or classed as having gone bad. This is normal for these kinds of loans.

Other protections: HNW Lending's directors take the first loss of 5% on auto-lend loans, in the event that repossessing and selling the property doesn't recover all the money.

In the broader scheme of things, the first loss will have little impact on lenders' average returns. However, that directors have lent six and even seven figures in the same loans as individual lenders is highly reassuring.

Those using auto-lend also have a reserve fund to protect them, although HNW Lending does not say how large it is and has not been able to confirm that the fund is legally segregated from HNW Lending's own finances entirely for lenders' benefit.

Place in the queue: You can be first, second or third in the queue to recover your money if a loan goes bad and the landlord has other debts.

Transparency: HNW Lending is transparent with 4thWay, sharing facts about its people and processes, and lots of data and access to people.

Interest rates: 6%-12% after fees. Available in an IFISA.

Who chooses loans? If you want, HNW Lending will auto-spread your money with the aim of at least 15 loans (and the spread was around 40 loans last time we asked). Or you choose your own loans. HNW Lending frequently has extraordinary deals, paying close to 10% interest on less than 40% LTV.

Minimum you can lend: £10,000 per loan – a very high minimum so you need to be wealthy. This falls to £5,000 per loan if you register with HNW Lending*, open an HNW Lending IFISA, and then pay in (or transfer in from others ISA) at least £15,000.

Early exit: Yes, you can sell your loans online through the HNW Lending website, provided other lenders want to buy you out.

See more of HNW Lending*, in our comparison tables, where you can also read one of our specialist's Quick Expert Review on HNW Lending.

Kuflink

Size, history and types of loans: £114 million since 2016 in peer-to-peer property bridge lending and a little bit of development lending.

Kuflink’s 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For A Kuflink Peer-to-Peer Property Lending Account

Lending during the pandemic: Kuflink continues to approve a reasonable number of loans.

Lender losses: Lenders have not lost money. A very small number of loans have lost approximately 10% or less, but Kuflink has taken on those losses for itself.

Most similar to: As with BLEND Network, CapitalRise, CrowdProperty, Invest & Fund and SoMo – which all offer bridging and development only – you can choose your own loans. But, as with BLEND Network, CapitalRise, CrowdProperty and Loanpad, you can also spread your money across more than one bridging and development loan automatically. It's also similar to HNW Lending in that Kuflink takes a first loss of 5% when you use one of its auto-lend accounts. As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: 65.54%.

Average rents: Not applicable.

Other protections: None.

Place in the queue: First, second or third.

Transparency: Kuflink now provides a large amount of information and access to 4thWay, including regular detailed data on the history and performance of its loans.

Interest rates: Around 7.00% after bad debts. Available in an IFISA.

Who chooses loans? You choose which loans to lend in or you can lend automatically.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid.

Minimum you can lend: £100.

Visit Kuflink* and see it in our comparison tables, where you can also read one of our specialists‘ Quick Expert Review on Kuflink.

Invest & Fund

Size, history and types of loans: Invest & Fund has done £107 million in bridging and development loans since 2015.

Invest & Fund’s 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For An Invest & Fund Peer-to-Peer Property Lending Account

Lending during the pandemic: The limited evidence we have indicates that Invest & Fund lenders had substantially fewer loans available to lend in during the pandemic.

Lender losses: No losses so far.

Most similar to: As with BLEND Network, CapitalRise, CrowdProperty, Kuflink and SoMo – which all offer bridging and development only – you can choose your own loans. (Invest & Fund has no option to auto-lend.) As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: 69.11% on bridging loans. Development loans are for an average of 61.14% of the hoped-for sale price.. The highest loan-to-value approved in the past two years was 78% for a bridging loan, and 68% versus the expected sales price on a development.

Other protections: None.

Place in the queue: Always first, except I&F occasionally offers second or third charge if Invest & Fund lenders also have the first-charge loan.

Transparency: Invest & Fund opened up its transparency for 4thWay completely at the end of 2020/beginning of 2021, and it's now one of the most accessible and transparent peer-to-peer property lending companies with us. It has agreed to continue to submit regular detailed data to us and provide access to its key people. Information on its website for individual lenders is, however, typically very out-of-date.

Interest rates: Around 6.67% after fees and bad debts in the regular P2P lending account and 6.17% in the IFISA due to slightly higher fees. Borrowing and lending rates have come down a few percentage points over the past few years, which is normal and expected when a P2P lending company proves its ability and grows in size.

Who chooses loans? You choose your own loans.

Early exit: You can exit early provided other lenders want to buy you out. You can't lower the price for buying you out to speed up a sale or increase it to sell for an additional profit. You're charged 0.25% of the loan value when you sell.

Minimum you can lend: The minimum initial contribution is £5,000. The minimum you can lend in a single loan is £500 (or £25 when buying existing loan parts off other lenders).

Visit Invest & Fund and see it in our comparison tables, where you can also read one of our specialists‘ Quick Expert Review on Invest & Fund.

Assetz Capital

Size, history and types of loans: £1 billion since 2013 in business lending that always has property to back it up.

Many of the loans are specifically property loans from six months to five years. Assetz Capital* does bridging loans, development loans, loans against rental properties, and business loans secured against property. This is the widest spectrum of property lending types offered by P2P lending companies at present.

Assetz Capital's 4thWay PLUS Rating:

Showing The Exceptional 3/3 PLUS Rating For An Assetz Capital Peer-to-Peer Property Lending Account

Lending during the pandemic: Assetz Capital approves a small number of P2P loans at present.

Lender losses: Lenders might typically expect losses of around 1% to 5% per year, which is easily covered by interest, although some accounts have reserve funds to cover some or all of those losses.

Most similar to: It's similar to Crowdestate (Estonia) and Downing Crowd for the full spectrum of property loan types it does, and quite similar to CapitalStackers, Estateguru, Folk2Folk and Relendex, in that they offer nearly all the same types of loans. CrowdProperty, CapitalRise, SoMo and Kuflink, in that it offers development and bridging lending where you can choose your own loans, but, as with CrowdProperty, Kuflink and BLEND Network, you can also spread your money across more than one loan automatically. It's also similar to Kuflink in that it has a reserve fund when using auto-lend accounts.

Average loan-to-value: slightly over 60%, with the maximum usually 75%. For development loans, the LTV is unknown, although the loan size versus the hoped-for sale value of the property is also typically around 60% and usually no more than 72%.

Average rents: No information supplied. It applies only to its rental property loans.

Other protections: Most Assetz Capital lending accounts have modest reserve funds; the property security is your main defence against losses.

Place in the queue: Usually first.

Transparency: Assetz Capital has provided a huge amount of information about itself to 4thWay, including providing a monthly, detailed, breakdown showing the history of all its loans. Assetz Capital displays above average transparency.

Interest rates: Around 4% in accounts with reserve funds, and up to 11% before losses in the manual selection account. With these kinds of loans, losses are to be expected. Available in an IFISA.

Who chooses loans? You can choose which loans to lend in or you can lend automatically.

Early exit: You can exit early provided other lenders want to buy you out.

Minimum you can lend: £1.

Visit Assetz Capital* or see more of it in our comparison tables, where you can also read one of our specialist's Quick Expert Review on Assetz Capital.

CapitalStackers

Size, history and types of loans: £17 million since it started in 2014. It offers property peer-to-peer lending secured against either residential or commercial rental properties or developments. The vast majority of the loans are development loans.

CapitalStackers' 4thWay PLUS Rating: Unrated, due to the depth of its history being insufficient. However, CapitalStackers does have 2/3 4thWay ALT Ratings:

Showing Peer-to-Peer Property Lending Platform CapitalStackers' Highly-Secured And Hidden Gem Alt Ratings

These are the Secured Property Loans and Hidden Gem Ratings. More here.

Lending during the pandemic: CapitalStackers continues to approve a reasonable number of loans.

Lender losses: No losses at CapitalStackers* and none expected on outstanding loans.

Most similar to: Assetz Capital in terms of its mix of property loan types. Proplend and Relendex in terms of stacked tranches that you can select for yourself:

What are stacked tranches?

Average loan-to-value: 60.2% is the average. When it comes to CapitalStackers' development lending, this is calculated using the hoped-for sale price rather than the starting price.

Average rents: Usually no rent as most loans are developments; no information supplied on the average rent when it is received.

Other protections: None.

Place in the queue: Usually second or third in the queue. Your tranche – your place in the “stack” generally tells you your place in the queue.

Transparency: CapitalStackers has provided huge amount of information about itself to 4thWay, and provides highly detailed data on a regular basis. It's one of the most transparent peer-to-peer property lending companies.

Interest rates: The average return has been 12.12%. The range of results has been 7.34%–22.48%, after losses.

Who chooses loans? You choose your own loans and tranches.

Minimum you can lend: £5,000.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid. Indeed, you can make massive profits selling loans for more than you paid. (Read The Safest 20% Returns In P2P Lending.)

See more of CapitalStackers* in our comparison tables, where you can also read one of our specialist's Quick Expert Review on CapitalStackers.

Loanpad

Size, history and types of loans: just £36 million lent so far, exclusively on property peer-to-peer lending, specifically property development and bridging loans, since 2018.

Loanpad's 4thWay PLUS Rating: Unrated, due to insufficient history, although it will reach the history threshold for a ratings calculation in very early 2021. In the meantime, Loanpad has 2/3 4thWay ALT Ratings:

Showing Peer-to-Peer Property Lending Platform Loanpad's Highly-Secured And Hidden Gem Alt Ratings

These are the Secured Property Loans and Hidden Gem Ratings. More here.

Lending during the pandemic: Loanpad continues to approve a reasonable number of loans.

Lender losses: No lender losses and no losses are likely.

Most similar to: BLEND Network and CrowdProperty, in that it just does senior bridging and development loans. “Senior” means no other lenders (such as banks) can get their money back before you do if the borrower is unable to repay, and the property needs to be repossessed and sold. As with BLEND Network, CapitalRise, CrowdProperty and Kuflink, you can also spread your money across more than one bridging and development loan automatically. Indeed, at Loanpad, your money is automatically spread across all live peer-to-peer property loans and redistributes on a daily basis. This is unique across all property P2P lending sites. As with all the mentioned competitors, there's no reserve fund. It's similar to Proplend's tranche A loans in that the most you ever lend is half the property valuation.

Average loan-to-value: 40.60% as of March 2021 and 32.60% based on the hoped-for sale price of the completed development. (Those aren't mis-prints. The ratios really are that good.)

Other protections: None, but partner lending businesses lend in a separate loan to all the same borrowers. Their loan is about 33% of the size of the Loanpad loan. Their lending is in a junior position, so they will lose their money before you do.

Place in the queue: You're always first in the queue to recover your money if a loan goes bad, ahead of other lenders.

Transparency: Loanpad is one of the most transparent and accessible peer-to-peer property lending sites, providing 4thWay with all the information and data we ask for.

Interest rates: 3%-4% before losses, with zero or negligible expected losses. Available in an IFISA.

Who chooses loans? You choose your own loans.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid.

Minimum you can lend: £10

Visit Loanpad* and see more of it in our comparison tables, where you can also read one of our specialist's Quick Expert Review on Loanpad.

Folk2Folk

Size, history and types of loans: £420 million to borrowers that can be any businesses with real property (real estate or land) to back the loans. Its peer-to-peer property lending also includes loans specifically about the properties itself, such as property developments and bridging loans.

Folk2Folk's 4thWay PLUS Rating: Unrated. Folk2Folk is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: Folk2Folk has continued its growth, lending more through the pandemic than the prior year.

Lender lossesFolk2Folk lenders have suffered no losses to date. Folk2Folk rarely provides up-to-date information on the proportion of loans that are bad and in the process of recovery, but prior to the pandemic at least this was a very small number.

Most similar to: It's most similar to Assetz Capital and EstateGuru, because it lends to businesses against their properties even when the loan isn't specifically about the property (e.g. lending for working capital secured against the property). Like Assetz Capital, CrowdProperty, CapitalRise, SoMo and Kuflink, it also does bridging and development lending, and you can choose your own loans. (Folk2Folk has no option to auto-lend.)

Average loan-to-value: No information. However, the maximum loan-to-value – at least on non-development loans, is usually 60%, which is excellent.

Other protections: None.

Place in the queue: First, except in “exceptional” circumstances.

Transparency: Folk2Folk provides too little information for us to fully assess the risks.

Interest rates: 6.5%, typically. Available in an IFISA.

Who chooses loans? You choose which loans to lend in.

Early exit: You can sell loans for the same price you paid, provided there are lenders who want to buy the loan parts from you. You're charged 0.5% of the loan value or £250, whichever is higher. You have to pay the first £250 of that just to list your loan on the secondary market, i.e. regardless of whether you successfully sell.

Minimum you can lend: £20,000 per loan!

Visit Folk2Folk. We currently do not have enough information to add Folk2Folk to our comparison tables.

EstateGuru

Size, history and types of loans: Around €340 million has been lent since 2014. Estonia-based EstateGuru offers business loans that are all peer-to-peer property lending, as they are secured against either residential or commercial properties. They also do P2P bridging loans and developments. Estonia lending is euros and on properties owned by borrowers in Estonia, Lithuania, Latvia, Finland, Germany, Spain, Portugal or Sweden.

EstateGuru's 4thWay PLUS Rating: Unrated. EstateGuru is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: EstateGuru has continued its growth, lending more through the pandemic than the prior year.

Lender losses: EstateGuru reports no losses to lenders so far.

Most similar to: Mintos in terms of the loans it does across many eurozone countries. It's most similar to Assetz Capital, EstateGuru and Folk2Folk, because it lends to businesses against their properties even when the loan isn't specifically about the property (e.g. lending for working capital secured against the property). Like Assetz Capital, CapitalRise, CrowdProperty, Folk2Folk, Kuflink and SoMo, it also does bridging and development lending. As with Assetz Capital, you can either choose loans manually or auto-lend with automatic diversification across more than one loan, although unlike Assetz Capital there's no reserve fund on any lending accounts.

Average loan-to-value: EstateGuru always lends based on the initial property valuation, even for developments. In other words, it doesn't look at what the hoped-for sale price of the development will be and lend against that.The average loan size versus the initial property valuation is 59.33%. The maximum LTV is 75%.

Average rents: No information supplied.

Other protections: None.

Place in the queue: Always first except for development loans, which can sometimes be second charge.

Transparency: EstateGuru provided a huge amount of information about itself to 4thWay initially, but it does not regularly supply detailed figures of loan performance that are needed to assess it properly.

Interest rates: 11.50% on all loans after bad debts.

EstateGuru pays you interest from when you pledge money, not waiting for the loan to be fully funded.

Who chooses loans? You choose your own loans.

Minimum you can lend: €50.

Early exit: No.

Other info: EstateGuru is regulated by the Bank of Lithuania, not the Estonian Financial Conduct Authority (which doesn't regulate P2P lending sites structured like EstateGuru) or the UK's Financial Conduct Authority.

Visit EstateGuru.

Downing Crowd

Size, history and types of loans: £160 million in loans completed since 2016. Downing Crowd does peer-to-peer property lending to trading businesses, such as pubs and care homes, typically for renovation and expansion, and also for more substantial development. Some of the business borrowers are making an element of rent on the properties.

Aside from real-property loans, Downing Crowd also does loans on renewable energy projects.

Downing Crowd's 4thWay PLUS Rating: Unrated. Downing Crowd is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: Downing Crowd continues to approve a reasonable number of loans.

Lender losses: There have been no lender losses, although we have no information about how many loans are in trouble.

Most similar to: Downing Crowd, the P2P lending site, is currently unique in that it's both related to another lending business with a good track record (Downing LLP), and it takes the lowest-risk loans from that other lending business to offer them to individual lenders on its P2P site. It's similar to Assetz Capital and Crowdestate (Estonia) for the full spectrum of property loan types it does, and quite similar to CapitalStackers, Estateguru, Folk2Folk and Relendex, in that they offer nearly all the same types of loans. It's also similar to SoMo, in that it does bridging and development loans and you can choose your own loans, there's no option to auto-lend and there's no reserve fund.

Average loan-to-value: We have no recent figures, although the maximum is 75%. This is based on Downing Crowd's own valuation, not an independent one. Some of the properties are probably difficult to value.

Average rents: a lot of the businesses are renting out properties. We don't have the typical or average rents and expect that these loans can be more stretched than you find with typical, high-street commercial property, although, on average, any rent is better than none in property lending.

Other protections: None.

Place in the queue: Almost always first.

Transparency: Downing Crowd did initially give 4thWay a large amount of information about its results, as well as the results of its other lending business, but it has not provided any updates since. We don't know the scale of any late loans or loans that have gone bad and are currently in recovery.

Interest rates: Ususally between 4% and 7% in loans before bad debts, with no more details provided. Available in an IFISA.

Who chooses loans? You choose which loans to lend in yourself.

Early exit: No.

Minimum you can lend: £100.

See more of Downing Crowd in our comparison tables, where you can also read one of our specialist's Quick Expert Review on Downing Crowd.

SoMo (formerly BridgeCrowd)

Size, history and types of loans: At least £140 million (incuding loans prior to P2P launch) in loans completed since 2014, but SoMo often takes a long time to update its information. The last information was on January 2020. SoMo does peer-to-peer property lending only, focusing entirely on bridging loans and development loans.

SoMo's 4thWay PLUS Rating: Unrated. SoMo is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: SoMo has not provided enough data to see how much lending is happening during the pandemic.

Lender losses: There were zero losses up to at least January 2020. Prior to then, over 15 years, the same team has never lost any money on a loan, not even through the recession.

Most similar to: Assetz Capital, CapitalRise, CrowdProperty, Downing Crowd, EstateGuru, Folk2Folk, Invest & Fund, Kuflink and SoMo, in that it does bridging and development lending, and you can choose your own loans with no reserve fund. (SoMo has no option to auto-lend.)

Average loan-to-value: 56%, although for developments, the figure is probably based on the hoped-for sale value of the property after the development is completed. The maximum is usually 70% on bridging loans, although we do not know the maximum on development loans.

Other protections: None.

Place in the queue: First, second or third (a mix).

Transparency: SoMo initially provided huge amount of information about itself to 4thWay, although it does not provide up-to-date figures on losses, returns, bad debts and most other areas, so it's not especially transparent. We know it has experienced some bad debts and recovered at least some of them.

Interest rates: 10.56% before bad debts. No IFISA.

Who chooses loans? You choose which loans to lend in yourself.

Early exit: You can exit early provided other lenders have the money to buy you out.

Minimum you can lend: £5,000.

See more of SoMo in our comparison tables, where you can also read one of our specialist's Quick Expert Review on Somo.

CapitalRise

Size, history and types of loans: £71 million since it started in 2016. It offers bridging loans and development loans. It used to also offer some non-loan products for developers, which it has discontinued.

Restrictions: Only for investors earning £100,000 or with £250,000 in assets (excluding own home), or for professional investors, or investors who have recently invested in one unlisted company (e.g. through crowdfunding websites).

CapitalRise's 4thWay PLUS Rating: Unrated. CapitalRise is not awarded a PLUS Rating because its history is too small for us to assess the risks well enough for it to earn a rating.

Lending during the pandemic: CapitalRise has been approving more new loans, as well as more tranches to the same developers, during the pandemic than prior to it.

Lender losses: No losses at CapitalRise. Just two loans are over six months late for repayment, although CapitalRise doesn't yet consider them as bad debts.

Most similar to: As with BLEND Network, CrowdProperty, Kuflink, Invest & Fund and SoMo – which all offer bridging and development only – you can choose your own loans. (CapitalRise has no option to auto-lend.) As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: 62% on non-development property loans. We don't have the figure for development loans against current property prices, but against future hoped-for sale price the average is 63%.

Other protections: None.

Place in the queue: You can be first in the queue or later, depending on the individual lending opportunity.

Transparency: CapitalRise has provided a huge amount of information about itself to 4thWay and provides regular data feeds, showing the results of its entire loan book. It's one of the most transparent peer-to-peer property lending companies.

Interest rates: 7%-11%, before losses. These have come down slightly since CapitalRise's launch from 7.75%-11.5%. Available in an IFISA.

Who chooses loans? You choose your own loans.

Minimum you can lend: £1,000.

Early exit: You can exit early provided other lenders want to buy you out for the value of the loan. The charge for leaving is 1.5%.

See more of CapitalRise in our comparison tables, where you can also read one of our specialist's Quick Expert Review on CapitalRise.

Relendex

Size, history and types of loans: £62 million exclusively on property peer-to-peer lending, specifically in residential buy-to-let, rented commercial properties and property development loans, since late 2013.

Relendex's 4thWay PLUS Rating: Unrated. Relendex doesn't provide enough information for a rating.

Lender losses: Less than 1% of the total ever lent has been written off through Relendex.* Relendex serves as an example of optimistic forecasts: it used to state that it forecast zero losses. Still, confirmed losses are very modest so far.

Most similar to: It's similar to Assetz Capital, CapitalStackers and Downing Crowd for the variety of property loan types that it does. It's also similar to CapitalStackers and Relendex in terms of stacked tranches that you can select for yourself:

What are stacked tranches?

Average loan-to-value: the LTV on non-development loans is around 51.19%, which is fantastic. On development sites, the loan size compared to the initial property site valuation is unknown. The average loan size against the hoped-for sale price of the developments is probably also at 50ish%.

Average rents: No information supplied.

Other protections: None.

Place in the queue: You are usually first in the queue, sometimes second, and sometimes a mix.

Transparency: Relendex initially provided huge amount of information about itself to 4thWay, although it does not yet provide a detailed, monthly breakdown showing the history of all its loans, and has not updated us for some time. Overall, Relendex is currently below average on transparency compared to other peer-to-peer property lending companies.

Interest rates: 7.11%, including an estimated deduction by 4thWay based on losses so far, although the rate might still be a little overstated as some other loans remain bad debts in the process of recovery. Available in an IFISA.

Who chooses loans? You choose which loans to lend in yourself.

Early exit: Yes, if you can find another lender to buy your loan parts for the same price you paid.

Minimum you can lend: £500.

Visit Relendex*.

Crowdestate

Don't get confused! This Estonia-based business is not to be confused with Mayfair-based Crowdestates (with an “s”).

Size, history and types of loans: €101 million has been put through this online property platform since 2015. This is not just peer-to-peer property lending, however, as Crowdestate is “full stack”. This means that, in addition to lending as the senior and junior lender, you can also invest in the underlying properties themselves, i.e. you can part-own property rather than lend. (Part-ownership is riskier than money lending, and it's outside the scope of 4thWay.)

Borrowers are based in Czech Republic, Estonia, Georgia, Italy, Latvia and Romania, and the loans could be bridging, development, property-secured business loans (e.g. for working capital), or loans against residential or commercial properties that are receiving rent.

Crowdestate' 4thWay PLUS Rating: Unrated. Crowdestate is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: Crowdestate has continued its growth, arranging slightly more loans through the pandemic than the prior year.

Lender losses: The Estonian Crowdestate supplies too little information, but it appears that a couple of loans have confirmed losses.

Most similar to: It's similar to Assetz Capital and Downing Crowd for the full spectrum of property loan types it does, and quite similar to CapitalStackers, Estateguru, Folk2Folk and Relendex, in that they offer nearly all the same types of loans. It's also like those two P2P lending companies in that you can choose your own loans with no reserve fund. Like Assetz Capital, there's also an auto-lend option, although this doesn't come with a reserve fund.

Average loan-to-value: No information.

Other protections: None.

Place in the queue: It depends on the specific lending opportunity.

Transparency: Crowdestate is somewhere in the middle-to-lower end of the pack compared to other peer-to-peer property lending companies, in terms of the level of information and access provided.

Interest rates: From 6%. Lenders have made over 15.16% on investments that have been repaid or written off, but we know that dozens of loans are at least late and a couple are bad debts, so until more information is forthcoming, plan for this rate to come down somewhat.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend:€100.

Visit Crowdestate, Estonia. It is not in our comparison tables due to lack of info.

Mintos

Size, history and types of loans: Mintos' peer-to-peer property lending is probably in the tens of millions of euros. Across all its lending – including non-property – the total is apparently €6.3 billion, but this extraordinarily high figure is not backed up and is likely to be greatly inflated in some way. Mintos' published figures have also strangely varied over time, as it previously reported over €1 billion more in lending.

The property loans are homeowner mortgages, while the rest are not property loans. (Again, this figure is increasingly out-of-date.) Loans are usually in euros. This is the only P2P lending website we know of that focuses its property lending on homeowners, either to purchase their homes or make home improvements.

Unlike most peer-to-peer property lending companies in this list, you generally receive some repayment of your loan each month, not just interest. The loans can last up to 10 years.

Mintos is based in Latvia. Loans are to borrowers from 33 countries in Europe, Africa, Asia and the Americas. But property loans are focused in just a few countries: Latvia, Lithuania, Moldova. Mintos has provided conflicting information, but it seems that other countries where property lending used to occur are currently suspended. These include Czechia, Spain and Romania. Mintos is a multi-currency lending platform, although you can always lend in euros even in loans from non-euro countries.

Mintos' 4thWay PLUS Rating: Unrated. Mintos is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans.

Lending during the pandemic: Mintos has not provided enough data to see how much property lending is happening during the pandemic, but at the time of writing two small property loans totalling €65,000 are available.

Lender losses: Actual written-off losses appear to be low.

Most similar to: HNW Lending in that it does loans secured against homeowner properties.

Average loan-to-value: Unknown.

Other protections: Sometimes you get a buyback guarantee, whereby the Mintos partner company that set up the loan will buy the loan back from lenders after the loan is e.g. 60 days late.

Place in the queue: Usually first.

Transparency: Mintos originally provided a huge amount of information about itself to 4thWay and it provides some statistics and data on its website, although it's often unclear what it means. It's difficult to place, but I'd say Mintos is somewhere around the middle of the pack on transparency.

Interest rates: Likely returns after bad debts are 7.9% or less, with not enough information to assess the actual returns.

Who chooses loans? You choose your own loans or you can lend automatically.

Minimum you can lend: €10.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid.

Other info: Mintos is currently unregulated.

Visit Mintos.

BLEND Network

Size, history and types of loans: £25 million since 2017 in peer-to-peer property lending. Its focus is entirely on development loans and short-term (bridging) loans.

BLEND Network’s 4thWay PLUS Rating: Unrated. BLEND is too new for a rating.

Lending during the pandemic: BLEND Network has continued its growth, lending more through the pandemic than the prior year.

Lender losses: There have been no confirmed lender losses so far.

Most similar to: CrowdProperty and Loanpad, in that it just does senior bridging and development loans. “Senior” means no other lenders (such as banks) can get their money back before you do if the borrower is unable to repay, and the property needs to be repossessed and sold. As with CapitalRise, CrowdProperty, Kuflink, Invest & Fund and SoMo – which all offer bridging and development only – you can choose your own loans. But, as with CapitalRise, CrowdProperty, Kuflink and Loanpad, you can also spread your money across more than one bridging and development loan automatically. As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: The average LTV was a super-low 30% on bridging loans, and just over 40% of the hoped-for sale price on development loans, but we haven't had an update on this for a year and don't receive regular data from BLEND Network. The maximum loan-to-value BLEND will allow is very low at 65% for non-development loans and a maximum of 65% of the hoped-for sale value on development loans.

Average rents: Not applicable.

Other protections: None.

Place in the queue: Always first.

Transparency: BLEND initially provided a lot amount of information about itself to 4thWay, but it's not kept up with regular data submissions.

Interest rates: Estimated 9.32% after bad debts, although this could come down further once BLEND Network's loans mature.

Who chooses loans? You choose which loans to lend in or you can lend automatically.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid. The cost is 0.6% of the loan parts you sell.

Minimum you can lend: £1,000.

Visit BLEND Network and see it in our comparison tables, where you can also read one of our specialist's Quick Expert Review on BLEND Network.

JustUs

Size, history and types of loans: £14 million since 2013, the vast majority of which is peer-to-peer property lending.

JustUs does all sorts of loans, including personal loans, but its property loans including bridging loans and development loans. It also does buy-to-let mortgages, but as of the end of 2020/beginning of 2021, JustUs hasn't approved a BTL mortgage for over a year.

Unlike most property P2P lending companies in this list, on some of JustUs' property loans you receive some of your actual loan money back in the monthly repayments (as opposed to getting it all back at the end).

JustUs' 4thWay PLUS Rating: Unrated. JustUs is not awarded a PLUS Rating because it has not provided enough information to be listed.

Lending during the pandemic: JustUs stopped property lending for nearly six months, but is now back to standard levels.

Lender losses: None on JustUs' property loans.

Most similar to: In a sense, the JustUs IFISA is different to all other options in this property lending guide, because you are unable to choose to lend just in property loans, so you must accept some unsecured personal lending. That doesn't apply to its regular account, which is more flexible.

For both its IFISA and regular accounts, if JustUs starts getting the rental-property loans going again, it's similar to CapitalStackers, Octopus Choice and Relendex for the blend of bridging, development and rental property lending. Assetz Capital, Crowdestate and Downing Crowd are the nearly the same, although they offer another type of loan too.

While its still short of rental-property loans, JustUs is more like BLEND Network, CapitalRise, CrowdProperty, Kuflink and Loanpad, in that you can spread your money across more than one bridging and development loan automatically. But, as with BLEND Network, CapitalRise, CrowdProperty, Kuflink, Invest & Fund and SoMo – which all offer bridging and development only – you can also choose your own loans. As with all the mentioned competitors, there's no reserve fund on its property lending (although there is one for your unsecured lending).

JustUs has some auto-lending options for both its accounts. Those options enable a set up rather like BLEND Network, CrowdProperty and Loanpad, in that you can limit your property lending to senior bridging and development loans. “Senior” means no other lenders (such as banks) can get their money back before you do if the borrower is unable to repay, and the property needs to be repossessed and sold.

Average loan-to-value: Unknown, although most loans appear to be under 60%, we we have seen one loan for nearly 90% LTV. Buy-to-let lending can be as much as 80%.

Other protections: None on property lending.

Place in the queue: First or second.

Transparency: JustUs provides 4thWay with insufficient information to assess its risks, so it's below average on transparency compared to other peer-to-peer property lending companies. Its own website information and statistics for its website users are kind of reasonable.

Interest rates: 8.48% after losses on all loans, not just property.

Who chooses loans? You choose your own loans or you can lend automatically.

Minimum you can lend: £10, or £100 initial contribution for the JustUs IFISA.

Early exit: You can exit early provided other lenders want to buy you out and agree the price: you could sell your loan parts to them for more or less than you paid. At present, this market to sell your loan parts is being redeveloped, so you need to get in touch with JustUs to try to sell your loans.

Visit JustUs. We currently do not have enough information to add JustUs to our comparison tables.

LandlordInvest

Size, history and types of loans: £11 million lent since 2017 in a combination of loans to residential property landlords and some short-term (bridging) loans against residential property.

LandlordInvest's 4thWay PLUS Rating: Unrated, due to insufficient information.

Lending during the pandemic: it seems like there has been little or no new lending during the pandemic.

Lender losses: It appears there have been no lender losses, but it's not certain whether LandlordInvest's data is up-to-date. (Note that since lenders are allowed to sell their loans for a 20% discount, some lenders might have given themselves a loss by selling in a hurry for up to 20% less than they paid.)

Most similar to: Proplend in that the majority of loans are secured against property that is receiving rent (although the balance appears to be sliding towards non-rentals – bridging lending). Like Assetz Capital, CapitalRise, CrowdProperty, Downing Crowd, EstateGuru, Folk2Folk, Invest & Fund, Kuflink and SoMo, it also does bridging and development lending, and you can choose your own loans, with no reserve fund.

Average loan-to-value: 64.61%. The maximum LTV 80% for both buy-to-let loans and bridging. For the latter, this is on the high side.

Other protections: None.

Place in the queue: Lenders are first or second in the queue to recover money if a loan goes bad.

Transparency: LandlordInvest has not provided sufficient information for 4thWay to assess the risks. Although it's website has a fair amount of information and data for individual lenders, it would be good if there was all a bit clearer.

Interest rates: We don't have enough clear information to understand what LandlordInvest's lending rates after bad debts have been. Available in an IFISA.

Who chooses loans? You choose your own loans.

Early exit: You can exit early by selling to other lenders. You can sell for a discount of up to 20% if you want, e.g. if you need your money back quickly and discounting encourages other lenders to buy.

Minimum you can lend: £100.

Visit LandlordInvest. We currently do not have enough information to add Folk2Folk to our comparison tables.

easyMoney

Size, history and types of loans: we have no figures on how much money has been lent through easyMoney by ordinary lenders since it started offering development loans and short-term (bridging) loans in 2018.

easyMoney’s 4thWay PLUS Rating: Unrated. easyMoney doesn't provide sufficient information for a rating and we don't know if it has sufficient scale and history for a rating.

Lending during the pandemic: easyMoney is approving loans in 2021, but we don't know how many.

Lender losses: There have been no confirmed lender losses so far.

Most similar to: It's like Kuflink, Invest & Fund and SoMo, in that it exclusively does bridging and development lending in both senior loans or junior loans. As with Invest & Fund, lending is automated as standard with no reserve fund, while certain classes of lender can self-select loans. In easyMoney's case, it's professional investors. easyMoney is unique (not in a good way) in that, when you auto-lend, you might initially have all your money lent into a single loan, although it tries to diversify you after that.

Average loan-to-value: The average LTV is just 44.01% on bridging loans, and 54.95% of the hoped-for sale price on development loans. However, we have no information about how this differs across each of easyMoney's lending accounts. The maximum loan-to-value is 75% for non-development loans, which is the very most we would want to see. It has a maximum of 70% of the hoped-for sale value on development loans.

Average rents: Not applicable.

Other protections: None.

Place in the queue: First or later.

Transparency: easyMoney provides nothing like enough information either publicly or to 4thWay for lenders to assess the risks. For example (one example among dozens), recent easyMoney statistics claim no loans are late or are bad. However, there is no information about how many loans have been extended, and for how long, which can be a sign of kicking problems down the road. There's insufficient information to assess whether lenders for its various accounts are getting a good deal, i.e. a sensible, fair interest rate.

Interest rates: easyMoney is advertising 3.67% to 7.01% target lending rates. Available in an IFISA.

Who chooses loans? You lend automatically, although professional investors lending £1 million can choose their own loans. It's not clear whether, or how much, they can cherry pick the best loans.

Early exit: You can exit early provided other lenders want to buy you out. You'll receive less back if the latest interest rates are higher than the ones that you agreed to lend at, in order to compensate the new lender.

Minimum you can lend: £100.

Visit easyMoney. We currently do not have enough information to add Folk2Folk to our comparison tables.

Sourced Capital

Size, history and types of loans: We have no up-to-date information on the amount that has been lent through Sourced Capital since it started in 2019. It's the only UK P2P lending company to focus exclusively on development lending.

Sourced Capital's 4thWay PLUS Rating: Unrated. Sourced Capital is too new for a rating and doesn't provide sufficient information.

Lending during the pandemic: It seems likely that Sourced Capital is not approving new loans during the pandemic. New lenders are currently unable to register.

Lender losses: We aren't aware of any lender losses yet.

Most similar to: BLEND Network, CrowdProperty and Loanpad in that it just does senior loans. Sourced Capital is unique in that it exclusively does development loans. As with BLEND Network, CapitalRise, Kuflink, Invest & Fund and SoMo (which all offer bridging and development) you can choose your own loans. As with all the mentioned competitors, there's no reserve fund.

Average loan-to-value: We don't have the latest figures on the average loan sizes. The maximum borrowers can borrow to begin with is 70% of the starting value of the property. The maximum borrowers can borrow altogether to complete the development is 70% of the hoped-for sale price.

Other protections: None.

Place in the queue: You're always first in the queue to recover your money if a loan goes bad, the developer has other debts to pay, and the property has to be repossessed and sold.

Transparency: Sourced Capital initially provided a lot of information to 4thWay, but has not updated us or provided a full breakdown of the performance of each loan. Sourced Capital doesn't provide sufficient information on its website for lenders.

Interest rates: Sourced Capital typically pays lenders 10% or 12% before losses. Available in an IFISA.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend: £250

Visit CrowdProperty and see more of it in our comparison tables, where you can also read one of our specialist's Quick Expert Review on CrowdProperty.

Crowdstacker

Crowdstacker offers a different business model that doesn't easily fit into the categories we use on this page – not without deeper investigation and co-operation from the P2P lending company. At present we therefore have no details here.

Crowdestates

Don't get confused! This Mayfair-based business is not to be confused with the Estonia-based Crowdestate (with no “s”).

Size, history and types of loans: Crowdestates, Mayfair, was apparently founded in 2014, although we don't know when it's first loan was approved. It provides so little information to lenders or 4thWay that there's no point covering it here.

Removed from the list

crowdahouse closed down, relaunched and apparently closed down again. It possibly now accepts lending again, but only if the lender is a business, not an individual.

CrowdLords is winding down gently, giving the tighter regulations as the reason.

fruitful soft-closed its doors to P2P lending in autumn 2015 to shift to more ordinary, non-P2P mortgage lending, so the company was removed from this list. As of end November 2015, lenders had already received 75%-85% of their money back and were still earning interest on the remainder.

Funding Circle announced in April 2017 that it will no longer be doing property loans. It will focus exclusively on its loans to small businesses.

FundingKnight has not offered new loans for a long time.

FundingSecure went into administration in October 2019.

houseFundr was due to open in 2015, but never did. It was going to focus on property development loans in London.

Landbay stopped doing peer-to-peer lending on 5th December 2019. It now only allows financial institutions to fund loans through it.

LendInvest has stopped allowing small individual lenders to lend through it, and there was always a question mark anyway about whether it was truly “P2P” lending.

Lendy has gone out of business.

MoneyThing closed and went into an orderly wind down in December 2019. (In December 2020, due to borrower litigation, MoneyThing could not afford to continue as it was, and it went into administration.)

Octopus Choice permanently stopped doing peer-to-peer lending in February 2021 and is winding down gently.

PropertyCrowd stopped doing P2P lending during the COVID-19 outbreak and is no longer available to individual lenders.

RateSetter, which mostly did personal loans but did a lot of property too, has been sold to Metro Bank and its operations will now be taken over for bank lending instead of P2P lending.

The House Crowd went into administration in February 2021.

ThinCats stopped doing peer-to-peer lending in December 2019. It now only allows financial institutions to fund loans through it.

Wellesley & Co. has not offered new P2P loans for years. (Many years after it stopped P2P, it is now bust and looking to restructure.)

*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, CapitalRise, CapitalStackers, HNW Lending, Kuflink, Loanpad and Proplend, 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.

 

 

 

14 responses to “23 Peer-to-Peer Property Lending Websites”

  1. Steve Hayes says:

    TheHousecrowd.com Buy to Let
    ok it’s not strictly a LOAN, instead a new company is set up for each dwelling and investors buy shares at £1000 a time and get the rent less costs and the surplus when sold. The platform takes 25%. It’s a little more fancily structured than I describe here.

    • Neil Faulkner says:

      Hi Steve! Thanks for that.

      To elaborate on your comment, thehousecrowd.com is more like being a crowd buy-to-let landlord, as opposed to lending to buy-to-let landlords (or to other property investors).

      At first glance it looks like thehousecrowd is investing without a mortgage, which, to me, takes away a large part of the point of property investing/BTL.

      You can read something more on the difference between lending to BTL landlords and being a crowd BTL landlord in the article: https://www.4thway.co.uk/candid-opinion/btl-investing-landbay-vs-crowdlords/

      Neil

  2. Steve Hayes says:

    True enough, but still of interest and still in a sort of p2p spirit. A lot more to do with property than REBS or FK etc are. The Housecrowd have something like 15M(?) in property, there’s also crowd2let, propertypartner, so worth a look?

    Why do you favour having a mortgage?

    Steve
    PS Can you get the site to email me when there is a posting on a thread I’ve participated in?

    • Neil Faulkner says:

      Thanks Steve.

      Some interesting websites there. However, they’re not lending again! 😉 All of those are about owning the property rather than lending, which is further up the risk scale.

      You asked why I favoured having a mortgage when owning investment properties.

      Property investing without a mortgage doesn’t offer such attractive rewards to make it worth the effort.

      While a mortgage increases the risks, done wisely it massively boosts the rewards.

      Let’s say you buy a property with cash for £100,000. You sell it later for £100,000 for an overall profit of £10,000. (Ignoring costs/other factors to keep it simple). You’ve made 10% on your investment.

      Now let’s say that you bought the same property, and four other similar ones, with a 25% deposit. So you’ve still put down £100,000 in cash – but now you’ve bought four properties worth £100,000.

      Now, all four properties go up 10% and you sell for an overall profit of £40,000. So you’ve made a 40% profit on your initial £100,000 investment.

      “PS Can you get the site to email me when there is a posting on a thread I’ve participated in?”

      Will do!

  3. Solicitorious says:

    Contrary to the information contained in this article, Saving Stream currently has a very active no-fee secondary market, where you can sell any amount of your loans at par (12%), usually within minutes…

    • Neil Faulkner says:

      Give us a chance; we’re just 15 months out of date there 😉

      Thanks for that; I’ll get the article updated.

  4. Solicitorious says:

    OK, you’ve updated. Not sure what you mean by “provided other lenders want to buy you out for the same amount you put in.”

    You can sell any amount of any loan on Saving Stream. You decide how much you want to sell, could be a fraction or your total holding of a loan. I’ve never waited more than a couple of hours for my loan parts to sell on the secondary market.

    • Neil Faulkner says:

      Not sure what you mean by “provided other lenders want to buy you out for the same amount you put in.”

      Thanks, I’ve made that a little bit more clear.

  5. Mike Powell says:

    Hi
    Has this been updated recently? Ive spotted three platforms with erroneous info without even looking hard eg Moneything – no early exit despite an SM being in operation for ages, Lendy – rates and structure out of date, Wellesley – directional change with property bonds. Hardly any mention of the multiple IFISA now available. Doesnt inspire much confidence in your ‘guides’ and ‘ratings’.

    • Neil Faulkner says:

      Thank you very much, Mike. I’ve looked into this and this piece should indeed be kept up-to-date.

      What I’m going to do is make this page the responsibility of a new person we’re hiring in to take on curation of lots of key pages, where those pages aren’t updated automatically yet. That person will require a lot of training, so, in the meantime, I’ll ask my colleague responsible for it right now to go over the whole page again within the next two weeks.

      Thank you for pointing this out to us.

  6. Will granr says:

    How come Lendinvest aren’t mentioned as I’ve heard they were a significant player in the market ?

    • Neil Faulkner says:

      Hi Will

      Lendinvest does not arrange loans directly between borrowers and lenders, so it is not P2P lending. It is an alternative investment fund. That’s why it left the P2PFA (a P2P lending association). Long before P2P lending was invented there have been property funds to invest in, so it’s following more in line with one of those models. There are potentially increased risks when not lending directly to borrowers.

      At present, 4thWay sticks to P2P lending businesses.

  7. Milena says:

    Great article, thank you. Which p2p lending platforms accept investors from other EU countries?

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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 “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.

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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.

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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 “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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