23 Property Peer-to-Peer Lending Websites

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By on 18 April, 2017 | Read more by this author

A few property peer-to-peer lending websites offer loans that are intrinsically low risk, such as homeowner mortgages, residential buy-to-let mortgages and commercial buy-to-let mortgages. In other words, the properties are receiving rent.

Other property peer-to-peer lending websites offer loans that are intrinsically higher risk, such as development loans and bridging loans. (See sidebox, below right, on “What are bridging loans?”) These do not receive rent and there can be less certainty, particularly with development loans, about getting all your money back.

Whatever type of lending they offer, some property P2P lending companies reduce the risks through excellent processes, strict borrower/security criteria and extra protections for lenders like you and me, such as reserve funds set aside to cover any excess losses.

What they’ve got in common

Generally, unless specified below, you are at the front of the queue when it comes to the property peer-to-peer lending company repossessing the property and selling it to get your money back.

Almost all of them do either a) interest-only loans, where you receive monthly interest, with your actual loan repaid at the end or b) “bullet loans”, whereby you receive both the interest and your loan at the end with no payments in between.

Both 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 of the companies allowing us to lend to borrowers against property are listed in 4thWay’s comparison tables yet, but we’re working on it. Largely it depends on the companies answering over 100 questions from us and providing all the information for lenders that goes into our detailed comparison pages.

Here’s a brief summary of all the property peer-to-peer lending websites. The platforms that have passed our strict tests based on international banking standards and therefore been awarded 4thWay PLUS Ratings are on top, and the rest are listed in order of size:

Landbay

Size, history and types of loans: Around £10 million in P2P mortgages to experienced residential buy-to-let landlords only (and tens of millions more in non-P2P mortgages) since 2014.

Landbay’s 4thWay PLUS Rating:

five-pluses

Lender losses: No lender has lost money yet through Landbay*, and no loans have ever been late or suffered problems.

Most similar to: Proplend in terms of its focus on property security that is receiving rent.

Property peer-to-peer lending: Loan-to-valueAverage loan-to-value: very decent at 67%, with a maximum of 80%.

Average rents: an excellent 170% of mortgage payments, with a minimum of 125%.

Other protections: Landbay also has a bad-debt provision fund that contains an amount the size of 0.6% of the outstanding loans. That figure might seem low, but combined with the security it is a substantial extra benefit.

Place in the queue: You’re always first in the queue to recover your money if a loan goes bad and the landlord has other debts.

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

Interest rates: 3.75%  after fees and expected losses. Available in an IFISA*, which means completely tax-free lending for all. (Read the IFISA Guide.)

Who chooses loans? Landbay chooses loans to allocate your funds to. Your money is automatically spread across at least five mortgages.

Minimum you can lend: £100, or £5,000 in Landbay’s IFISA.

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

See more of Landbay* in our comparison tables, where you can also read one of our experts‘ Quick Expert Review on Landbay.

Proplend

Size, history and types of loans: Roughly £12.5 million of mortgages against rented residential and commercial properties since 2014.

Proplend’s 4thWay PLUS Ratings:

Proplend Tranche A Loans (0-50% LTV):

five-pluses

Proplend Tranches B and C Loans (50%-75% LTV):

three-pluses

Due to its shorter history, we combine tranches B and C for rating purposes.

Lender losses: No lender has lost money yet through Proplend*, and no loans have ever been late or suffered problems.

Most similar to: CapitalStackers in terms of stacked tranches (more below) or Landbay in terms of its focus on property security that is receiving rent.

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 65%. (Therefore if you 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%-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 maximun of 75% LTV. Still highly respectable for rental properties.

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 always ensures landlords rent will easily cover the mortgage payments.

Other protections: Proplend takes six months’ interest in advance, effectively reducing the risk of losing money overall by a 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: 6.3%

Tranche B: 6.7%

Tranche C: 7.4%

These interest rates are after fees and expected losses.

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 experts‘ Quick Expert Review on Landbay.

RateSetter

RateSetter* mostly does personal and business loans, but around 10% of its loans are property development loans.

You can’t choose who you lend to on RateSetter, so you will likely end up lending mostly to people in ordinary personal loans, with potentially some business and property loans thrown in. (If you lend in its one-year account you’re more likely to be top-heavy development loans, but you still have no choice.)

As a result, we do not review it here. Instead, see our RateSetter review and get more details in our comparison tables.

HNW Lending

Size, history and types of loans: Around £20 million in P2P lending, mostly secured against property and mostly bridging loans, since 2014. It also is 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:

five-pluses

Lender losses: No lender has lost money yet through HNW Lending*, and no loans have ever been late or suffered problems.

Property peer-to-peer lending: What are bridging loansMost similar to: BridgeCrowd and Invest & Fund in that it does bridging loans with no reserve fund and you choose your own loans, and eMoneyUnion in that it dips into homeowner loans or some more alternative kinds of property loans.

Average loan-to-value: fantastic at around 55%, with a low maximum of 70%.

Other protections: HNW Lending takes the first loss of around £10,000 on some loans, in the event that repossessing and selling the property doesn’t recover all the money.

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, sharing facts about its people and processes, and lots of data, with 4thWay.

Interest rates: 6%-12% after fees. Available in an IFISA*, which means completely tax-free lending for all. (Read the IFISA Guide.)

Who chooses loans? 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: You can exit early provided other lenders have the money to buy you out.

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

Assetz Capital

Size, history and types of loans: Over £200 million since 2013 in business loans, loans against assets, and loans against properties. But today we’re focusing just on property loans.

Assetz Capital* does property loans from six months to five years. It does bridging loans, development loans, loans against rental properties, and business loans secured against property.

Assetz Capital’s 4thWay PLUS Rating:

five-pluses

Lender losses: Confirmed lender losses have been very low or zero (zero through all Assetz Capital products that are protected by reserve funds).

Most similar to: (Has lots of guises:) ThinCats in terms of business property loans, Wellesley or Landbay in terms of combining property loans under the protection of a reserve fund, LendInvest in terms of bridging or development with no reserve fund, and CapitalStackers for the variety of other property loan types.

Average loan-to-value: 65% (approximately), with the maximum usually 70%, on non-development loans. For development loans, the LTV is unknown.

Average rents: No information supplied.

Other protections: Most Assetz Capital lending accounts have reserve funds that are approximately 1.2% of outstanding loans.  That figure might seem low, but combined with the security it is a substantial extra benefit.

Place in the queue: Usually first.

Transparency: Assetz Capital has provided huge amount of information about itself to 4thWay, including a detailed, monthly breakdown showing the history of all its loans. Assetz Capital is very transparent.

Interest rates: 3.9%-15.5%.

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 and agree the price: you could sell your loan parts to them for more or less than you paid.

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 experts‘ Quick Expert Review on it.

LendInvest

Size, history and types of loans: £1 billion in bridging and development loans since 2013.

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

Lender losses: No lender has lost money yet through LendInvest*, and late loans or loans expected to default are very low indeed. LendInvest’s founders have been doing loans in the industry prior to LendInvest since 2008 with no losses on money lent.

Most similar to: BridgeCrowd and Invest & Fund in that it does bridging and development loans only with no reserve fund and you choose your own loans.

Average loan-to-value: We do not know what LendInvest’s LTV is based on the current market value of the property security.

Other protections: None.

Place in the queue: For development loans you are always first. For bridging loans you could be first or second in the queue to recover your money if a loan goes bad and the borrower has other debts.

Transparency: LendInvest provides some detailed data for individual lenders to assess them, but it does not generally allow public research of its data by experts. Overall, we’d say LendInvest is in the middle of the pack when it comes to transparency.

Interest rates: 7.01% average.

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

Early exit: Not possible.

Minimum you can lend: £1,000.

Other info: LendInvest does not enable direct lending between you and the borrower, so it is not “pure” P2P in that sense. As we as understand it, you are entitled to receive your share of the interest payments from LendInvest when it lends your money to the borrowers.

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

Wellesley & Co.

Size, history and types of loans: Over £400 million exclusively on property peer-to-peer lending, specifically bridging and development loans, since late 2013.

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

Lender losses: No lender has lost money yet through Wellesley & Co.*, although we are no longer provided information on late loans and have too little/unclear information on loans suffering problems.

Most similar to: Lendy in that it does development and bridging loans with “other protections” (see below) although similar to Assetz Capital or RateSetter in that you don’t choose your loans and your money is spread out automatically.

Average loan-to-value: As with many development loan platforms, Wellesley doesn’t share the average loans-to-value against the current value of the security.

Other protections: Wellesley will attempt to cover bad debts that aren’t fully recovered when security is repossessed and sold using some of its own money, although that pot of money is not segregated like other P2P lending sites’ reserve funds, meaning if Wellesley runs low on money itself it could spend this money to keep its own business going.

Directors have previously stated that they take the first loss of 5% on any loan where any money cannot be recovered from property sales, although this is not in writing and it doesn’t form part of your legal contract.

Place in the queue: We do not have information on how often you are first or second (or third) in the queue to recover your money if a loan goes bad and the borrower has other debts.

Transparency: Wellesley initially provided huge amount of information about itself to 4thWay. Now, we have lots of question marks. Its statistics on late payments and defaults is incomplete, it is late to update its statistics and we semi-regularly notice errors.

Interest rates: Currently very low at under 2%.

Wellesley pays you interest even if your money is not being lent.

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

Who chooses loans? You cannot choose loans, but Wellesley has previously stated that your money is automatically spread across all outstanding loans, which is more than 100.

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

Minimum you can lend: £10

See more of Wellesley & Co.* in our comparison tables.

ThinCats

Size, history and types of loans: Over £200 million since 2011 in business loans, including loans against rental properties, bridging loans and development loans, as well as business loans secured against property. Property loans are from six months to five years.

ThinCats’ 4thWay PLUS Rating: Unrated. ThinCats does not quite provide enough information for a rating.

Lender losses: Confirmed lender losses have been over 2% per year, which is covered by the interest earned. Late loans and loans suffering trouble have been high in earlier years although this has fallen a lot in  more recent years, perhaps indicating it has learned and improved.

Most similar to: Assetz Capital in terms of both its size and the types of loans it does, although unlike Assetz Capital it does not offer any products with reserve funds.

Average loan-to-value: No information supplied.

Average rents: No information supplied.

Other protections: None.

Place in the queue: Usually first.

Transparency: ThinCats has provided huge amount of information about itself to 4thWay, and it provides some regularly updated detailed data showing the history of its loans. A few items are not transparent, particularly loans to value and specifying the type of loan made for each loan in its loan book, but aside from that transparency is high.

Interest rates:

9% after losses.

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

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: £1,000.

Visit ThinCats or see more of it in our comparison tables.

Lendy (formerly Saving Stream)

Size, history and types of loans: £300 million exclusively on property peer-to-peer lending, specifically bridging loans and development loans, since 2014.

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

Lender losses: No lender has lost money yet through Lendy, although it does not provide us with figures showing late loans or loans currently suffering problems.

Most similar to: LendInvest, BridgeCrowd and Invest & Fund in that it does the same kind of loans and you choose loans for yourself, although Lendy is different in that it has a reserve fund, which is similar to Wellesley.

Average loan-to-value: No info, although the maximum LTV on bridging loans is a highly respectable 70%.

Other protections: A reserve fund totalling around 2% of the outstanding loanbook is very substantial when combined with the security.

Place in the queue: You could be first in the queue or later.

Transparency: Lendy provides very little information that is easily accessed and measured. It is not highly transparent.

Interest rates: 12%

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

Early exit:  Yes, if you can find another lender to buy your loan parts for the same price you paid. You can even sell loans that have gone bad.

Minimum you can lend: £100.

Other info: Lendy does not enable direct lending between you and the borrower, so it is not “pure” P2P in that sense. This could increase your risks, e.g. if Lendy were to go out of business with debts of its own. That said, the provision fund is set up in a separate company for the benefit of us individual lenders.

Visit Lendy. We currently do not have enough information to add Saving Stream to our comparison tables.

Folk2Folk

Size, history and types of loans: Around £150 million exclusively on property peer-to-peer lending has been lent out to borrowers in south-west England, secured against developments, agricultural land and other commercial areas.

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.

Lender lossesFolk2Folk has supplied no information on losses, bad debts or late payments.

Most similar to: LendInvest.

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 almost no information, particularly about its results, so it is one of the least transparent P2P lending companies.

Interest rates: 6% approximately, although this is before expected losses for which we have no information.

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

Early exit: You can specifically choose loans that you can both enter or exit with three months’ notice. The other loans lock you in for either one or two years.

Minimum you can lend: £25,000!

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

FundingSecure

Size, history and types of loans: Over £100 million in lending since 2013 against all sorts of assets (including cars and boats), but regarding property it includes bridging, development and short-term property loans.

FundingSecure does six-month property loans, with the interest paid at the end. These loans are often extended by another six months at a time, provided the borrower pays all the outstanding interest.

FundingSecure’s 4thWay PLUS Rating: Unrated. We are in the process of trying to rate FundingSecure as I write, and it will get a rating if it is investment grade (even during a severe recession/property crash) and if the data we have from FundingSecure is solid enough.

Lender losses: Bad debts have been less than 0.1% and the expected losses are 1.5% per year, although this is well covered by interest earned. Around 13% of loans are either late or have been rolled over. However, excluding rolled over loans – since rolling over loans is normal in this case – lates are closer to 1%, which is much more acceptable.

Most similar to: HNW Lending, MoneyThing and Saving Stream.

Average loan-to-value: Around 58% based on current property values (so in the case of development loans the LTV is not based on the hoped-for sale price of the developments).The maximum LTV for non-development loans against current value is 70%.

Other protections: None.

Place in the queue: We lenders are usually, but not always, first in the queue to recover our money if a loan goes bad and the borrower has other debts.

Transparency: FundingSecure is transparent about its processes and statistics.

Interest rates: 11%+ after expected losses.

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: £25

See more of FundingSecure in our comparison tables and read more about it in Pawnbroking P2P Lending Websites Paying 10%+.

Mintos

Size, history and types of loans: Over €150 million has been matched in Mintos loans to borrowers in Latvia, Lithuania and Estonia (the Baltic States), and Georgia, Poland and the Czech Republic, including €10 million in homeowner mortgages (with the rest non-property loans secured against cars). Loans are in euros. This is the only P2P lending website we know of that lets you lend to homeowners to either purchase their homes or make home improvements.

Unlike most property P2P 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’ 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.

Lender losses: Bad debts have been very low.

Most similar to: eMoneyUnion and HNW Lending in that only these three P2P lending companies do loans secured against homeowner properties.

Average loan-to-value: Unknown, although most loans are under 40% LTV (very low) and the highest loan-to-value we have seen is 76%.

Other protections: None. (While loans on Mintos can come with buy-back guarantees in case of default, we haven’t noticed any property loans with these guarantees.)

Place in the queue: Usually first.

Transparency: Mintos has provided huge amount of information about itself to 4thWay and it provides good statistics about bad debts on its website, making it above average on transparency.

Interest rates: 9% (approximately) before expected losses, although Mintos does not state what its expects losses to be.

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.

MoneyThing

Size, history and types of loans: Over £50 million in lending since 2015 against all sorts of assets (including cars and boats), but regarding property MoneyThing does bridging, development and short-term property loans.

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

Lender losses: No lender losses so far.

Most similar to: HNW Lending, FundingSecure and Saving Stream.

Average loan-to-value: No information. The maximum LTV for non-development loans against current value is usually 70%.

Other protections: Sometimes partner companies – the ones that arranged the loans – promise to pay all losses, if any.

Place in the queue: First.

Transparency: MoneyThing has provided huge amount of information about itself to 4thWay, although it does not provide detailed regular data on many areas.

Interest rates: 12%, but that’s before losses or expected losses, since no figures are supplied.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend: £1.

See more of MoneyThing in our comparison tables and read more about it in Pawnbroking P2P Lending Websites Paying 10%+.

FundingKnight

Size, history and types of loans: £30 million in business and property loans, of which around £5 million are property: bridging and development loans.

FundingKnight’s 4thWay PLUS Rating: Unrated. FundingKnight’s property lending product does not have enough history to be awarded a PLUS Rating.

Lender losses: No losses have been realised on FundingKnight‘s property loans yet. Combined late loans and loans that are having difficulties have been high, but good bad debt recoveries due to low loans-to-value have, as 4thWay forecasted previously, hugely eliminated losses on these property loans.

Most similar to: Assetz Capital in that it does both business and property loans; LendInvest in that its property loans are bridging and development that you can choose for yourself, although you can also automate your lending.

Average loan-to-value: 58% on bridging loans. We don’t have the confirmed LTV on development loans versus the current market value of the property.

Other protections: None.

Place in the queue: Usually first.

Transparency: FundingKnight is very transparent, providing lots of information. It is quite close to the top of the pack when it comes to transparency.

Interest rates: 8.5% (approximately) after expected losses.

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

Early exit: You can exit early provided other lenders have the money to buy you out. As with Lendy, you can even sell loans that have gone bad.

Minimum you can lend: £25.

Other info: FundingKnight needed to be bailed out by one of its major shareholders in 2016. While the business is still ongoing it shows that there are risks of P2P lending companies collapsing. In the event of collapse, these businesses are supposed to have set up arrangements for the existing loans to be wound down gently, so that lenders continue to receive their repayments, although you’re not guaranteed to receive every penny back.

See more of FundingKnight in our comparison tables.

BridgeCrowd

Size, history and types of loans: £20 million in loans completed since 2014 (£70 million in total from the same team, prior to starting this P2P venture). No prizes for guessing BridgeCrowd does bridging loans, including development loans. BridgeCrowd only does property peer-to-peer lending.

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

Lender losses: There were zero losses up to January 2017. 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: LendInvest and Invest & Fund in that it does bridging and development loans only with no reserve fund and you choose your own loans.

Average loan-to-value: Around 60%. 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: BridgeCrowd has provided huge amount of information about itself to 4thWay, although it does not provide up-to-date figures provided on losses, returns, bad debts and most other areas. Middle of the pack on transparency.

Interest rates: 12%.

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

Early exit: No, although the loans are generally short at 6-12 months.

Minimum you can lend: £5,000.

See more of BridgeCrowd in our comparison tables.

EstateGuru

Size, history and types of loans: €20 million has been lent since 2014. EstateGuru offers loans secured against either residential or commercial rental properties, bridging loans and developments – albeit all in euros and on properties owned by businesses in Estonia or Latvia.

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. Potentially it also has too small a history for us to assess the risks well enough for it to earn a rating.

Lender losses: EstateGuru’s statistics are ambiguous on previous losses. Currently no outstanding loans are late by 45 or more days and there have been no bad debts.

Most similar to: Relendex in terms of size and the variety of loans (although unlike Relendex there is no option to auto-lend).

Average loan-to-value: 58% on non-developments, which is excellent. The average for developments is unknown. Maximum LTV is 75%.

Average rents: No information supplied.

Other protections: None.

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

Transparency: EstateGuru has provided huge amount of information about itself to 4thWay, although it does not regularly supply detailed figures of loan performance.

Interest rates: 12% (approximately) after expected 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 currently unregulated. The Estonian Financial Conduct Authority is still working on new regulations for peer-to-peer lending.

Visit EstateGuru.

Invest & Fund

Size, history and types of loans: £10 million in bridging and development loans since 2014. Again, this does property peer-to-peer lending only.

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

Lender losses: Invest & Fund supplies no information on losses, late payments or problem loans.

Most similar to: LendInvest and BridgeCrowd in that all its loans are development and bridging loans, there is no reserve fund and you choose loans for yourself.

Average loan-to-value: No info on historical average. “Current” average is 60%. Non-development loans are a maximum 75% LTV for first charge loans or 60% for second charge. (See “Place in the queue.) Most loans are development loans, but we do not have any information about the loans-to-value on developments versus the current property price.

Other protections: None.

Place in the queue: First or second.

Transparency: Invest & Fund is one of the least transparent P2P lending companies, providing little information about itself and none about its record.

Interest rates: From around 8.5% but that’s before losses or estimated losses – no estimates are provided.

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: £500 (£25 when buying existing loan parts off other lenders).

Visit Invest & Fund. We currently do not have enough information to add Invest & Fund to our comparison tables.

CrowdProperty

Size, history and types of loans: Over £6 million exclusively on property peer-to-peer lending, specifically property development loans, since 2014.

CrowdProperty’s 4thWay PLUS Rating: Unrated. CrowdProperty is not awarded a PLUS Rating because it does not provide enough information to assess the riskiness of its loans and because its history is too small for us to assess the risks well enough for it to earn a rating.

Lender losses: CrowdProperty supplies no information on losses, late payments or problem loans.

Most similar to: Crowdestates in that all its loans are development loans, there is no reserve fund and you choose loans for yourself.

Average loan-to-value: As with many development loan platforms, CrowdProperty doesn’t share the average loans-to-value against the current value of the security.

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 provides negligible information about its performance for assessing risks and, aside from excellent information on its experienced team (the first thing you should look for in a P2P lending company) we have extremely little background information about this P2P lending company.

Interest rates: 8% before losses, but no estimated loss figures are supplied.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend: £500

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

CapitalStackers

Size, history and types of loans: £5 million since it started in 2014. It offers property peer-to-peer lending secured against either residential or commercial rental properties or developments.

CapitalStackers’ 4thWay PLUS Rating: Unrated. While its record is excellent and this P2P site, its people and processes look very solid, CapitalStackers is not awarded a PLUS Rating because it has too small a history for us to do our rating calculations on it.

Lender losses: No losses or bad debts at CapitalStackers.

Most similar to: Proplend in terms of stacked tranches, Wellesley and others in terms of its development loans.

Average loan-to-value: 51% on non-development property loans. We don’t have the figure for development loans against current property prices.

Average rents: No information supplied.

Other protections: None.

Place in the queue: Rarely, if ever, first 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 has just started providing lots of figures on losses, returns, bad debts and most other areas.

Interest rates: You could earn 5%-20%, or even more, before losses, based on where you are on the stack and whether you’re lending to rental properties (lower risk) or developments.

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

Minimum you can lend: £400.

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.

See more of CapitalStackers in our comparison tables and read more about it in CapitalStackers: High Property Returns With Lower Risk.

Relendex

Size, history and types of loans: Approximately £5 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 has completed too few loans to be rated and doesn’t provide enough information for a rating.

Lender losses: No lender has lost money yet through Relendex, and there are no loans that are late or in trouble.

Most similar to: LendInvest in terms of development loans, albeit with lower-risk buy-to-let properties – rent-paying properties – thrown in.

Average loan-to-value: 53%.

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 has 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. Overall, Relendex is currently above-average transparent.

Interest rates: 8.25%. Note that no deduction has been made for estimated bad debts, although Relendex forecasts zero bad debts.

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

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.

Crowdestates

Size, history and types of loans: At least £2 million exclusively on property peer-to-peer lending – development loans only – since 2015, but Crowdestates has not supplied new information for a long time.

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

Lender losses: Crowdestates supplies no information on losses, late payments or problem loans.

Most similar to: CrowdProperty in that all its loans are development loans, there is no reserve fund and you choose loans for yourself.

Average loan-to-value: No information.

Other protections: None.

Place in the queue: No information.

Transparency: Crowdestates is one of the least transparent P2P lending companies, providing almost no information about itself or its record.

Interest rates: From 6% but that’s before losses or estimated losses – no estimates are provided.

Who chooses loans? You choose your own loans.

Early exit: No.

Minimum you can lend: £10,000.

Other info: According to our test using IBM Security Trusteer Rapport software, Crowdestates does not offer secure sign in, making it easy for thieves to steal your personal information.

Visit Crowdestates but note the warning in “Other info”. We currently do not have enough information to add Crowdestates to our comparison tables.

eMoneyUnion

Size, history and types of loans: £2 million since 2013.

eMoneyUnion does all sorts of loans, including personal loans, but it also does loans secured against property, including bridging loans and development loans, and it is also just one of three P2P lending companies to do loans secured against borrowers’ own homes. (The others are HNW Lending and Mintos.) Read more on that in eMoneyUnion really DOES Do P2P Homeowner Loans.

Unlike most property P2P lending companies in this list, on some of eMoneyUnion’s property loans you receive some of your loan back in the monthly repayments (as opposed to getting it all back at the end). In addition, some loans can last up to 15 years, which is far longer than normal for P2P lending.

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

Lender losses: There have been no bad debts on eMoneyUnion’s property loans.

Most similar to: Mintos and HNW lending.

Average loan-to-value: Unknown, although most loans appear to be under 60% and we have seen one loan for nearly 90% LTV.

Other protections: None. (While eMoneyUnion has a reserve fund to cover losses, this does not apply to secured loans.)

Place in the queue: First or second.

Transparency: eMoneyUnion provides very little information to assess its risks, so it is below average on transparency.

Interest rates: 7% or more before losses, but eMoneyUnion does not state expected or actual losses.

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.

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

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 cooperation from the P2P lending company. At present we therefore have no details here.

Removed from the list

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.

crowdahouse closed down, relaunched and has apparently closed down again.

houseFundr was due to open in 2015 and still hasn’t appeared. It was going to focus on property development loans in London.

fruitful soft-closing 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.

*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, HNW Lending, Landbay, LendInvest, Proplend, RateSetter and Wellesley & Co., 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.

8 responses to “23 Property Peer-to-Peer 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.

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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.

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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.

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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.

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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.

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