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25 Property Peer-to-Peer Lending Websites

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By on 15 July, 2019 | 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.

Read on for the full list of 25 property sites and read 4thWay CEO’s 7 Top Property IFISA Picks.

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 £360 million in mortgages to experienced residential buy-to-let landlords only since 2014.

Landbay's 4thWay PLUS Rating:

Exceptional 3 PLUS Rating

Lender losses: No lender has lost money yet through Landbay*, and no loans have suffered problems. Just one loan out of over 1,000 is currently one payment late.

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: decent at 72.34%, with a maximum of 80% (better than all the high-street banks).

Average rents: an excellent 176.13% 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%-3.5.4% after fees and expected losses. Available in an IFISA.

Who chooses loans? Landbay chooses loans to allocate your funds to. Your money is automatically spread across whatever mortgages are available. While this could theoretically be as little as one mortgage, lenders are typically lending across 16 mortgages to begin with and this increases as you re-lend interest payments. This would be far too little diversification if it was unsecured personal loans, for example, but for quality property loans it is significant. Note that the spread is not even and you might typically have some overweight loans.

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 £80 million of mortgages against rented residential and commercial properties since 2014.

Proplend's 4thWay PLUS Rating:

Exceptional 3 PLUS Rating

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

Lender losses: No lender has lost money yet through Proplend*. A handful of loans are late to be repaid, although borrowers are still meeting monthly interest payments and the loans are expected to be paid successfully.

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 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 always 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: 7.51%

Tranche B: 9.43%

Tranche C: 9.13%

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 experts‘ Quick Expert Review on Proplend.

RateSetter

Exceptional 3 PLUS RatingRateSetter* mostly does personal and business loans, but around a third 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.)

In addition, due to how its reserve fund operates, your risk is effectively spread across all loans, property or not.

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 £70 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:

Exceptional 3 PLUS Rating

Lender losses: Some few tens of thousands of pounds have been written off so far through HNW Lending*.

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, or like Assetz Capital in that you can instead choose to auto-spread your money with a reserve fund. It is also most like JustUs in that it dips into homeowner loans or some more alternative kinds of property loans.

Average loan-to-value: senior loans have an incredibly low 46.5% 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.

Other protections: HNW Lending's directors take 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.

In the broader scheme of things, this will have little impact on lenders' average returns. However, that directors have lent over £500,000 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, sharing facts about its people and processes, and lots of data, with 4thWay.

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. 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: HNW Lending doesn't exactly specify if you can on its website, but we have been told that if you ask to leave early you can do so 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.

CrowdProperty

Size, history and types of loans: £45 million exclusively on property peer-to-peer lending, specifically property development loans, since 2014.

CrowdProperty's 4thWay PLUS Rating:

Exceptional 3 PLUS Rating

Lender losses: no lender losses.

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: 60.90% and 53.30% 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 P2P lending sites, providing 4thWay with all the information and data we ask for.

Interest rates: 7.84% 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 experts‘ Quick Expert Review on CrowdProperty.

Assetz Capital

Size, history and types of loans: £890 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:

Exceptional 3 PLUS Rating

Lender losses: Confirmed lender losses have been zero through all Assetz Capital products that are protected by reserve funds, although some older accounts and some lenders in the manual lending account could be due to have losses confirmed as written off, if that has not already happened.

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

Average loan-to-value: around 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%. These sensible LTVs are required, because Assetz Capital has more than its fair share of loans that fall late or go bad. The good LTVs probably explain its high bad-debt recovery rates.

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

Other protections: Most Assetz Capital lending accounts have modest reserve funds, but combined with the property security it is a nice additional benefit.

Place in the queue: Usually first.

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

Interest rates: 4.2%-6.5% in accounts with reserve funds, and up to 12% 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 experts‘ Quick Expert Review on it.

CapitalStackers

Size, history and types of loans: £12 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, due to insufficient information, although we hope this will change shortly. However, CapitalStackers does have 2/3 4thWay ALT Ratings:

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

Lender losses: No losses or bad debts at CapitalStackers*.

Most similar to: Proplend in terms of stacked tranches, BridgeCrowd 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: Usually second 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.

Interest rates: 5%-20%, or even more, before losses, based on where you are in 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: £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.

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

Loanpad

Size, history and types of loans: just £3 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 information, although we hope this will change as it grows. However, Loanpad does have 2/3 4thWay ALT Ratings:

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

Lender losses: no lender losses.

Most similar to: CrowdProperty in that all its loans are senior, meaning 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. Most similar to BridgeCrowd (and many others) in that it accepts bridging and developments. In that it spreads your money across all loans and re-distributes your money on a daily basis – this is unique across all property P2P lending sites.

Average loan-to-value: 33.69% and 19.04% 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 a partner lending business takes first loss of around 33% or more by lending to the same borrower on the same project in a junior position. 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 P2P lending sites, providing 4thWay with all the information and data we ask for.

Interest rates: 4.0%-5.0% 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 experts‘ Quick Expert Review on Loanpad.

Octopus Choice

Size, history and types of loans: £410 million has been lent since 2016 in a combination of buy-to-let mortgages, loans to landlords who own rented commercial properties, and some short-term (bridging) and development loans.

Octopus Choice‘s loans can last two months to 25 years, with interest usually paid monthly.

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

Lender losses: Octopus Choice expects, and has faced, low annual losses.

Most similar to: Landbay and Proplend.

Average loan-to-value: The average loan-to-value fluctuates a fair bit, but is currently very low at 49.90% and has never been above 65%. The maximum LTV against initial property valuation is 76%.

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: Octopus Choice was highly transparent with us initially, but we ideally need a constant feed of information to stay up-to-date, and that we don't have from them.

Interest rates: 4.0% average interest after expected losses. Available in an IFISA.

Who chooses loans? You choose your own loans.

Early exit: You can exit early by selling to other lenders, although Octopus Choice also puts a substantial amount of its own money in the pot to aid a swift exit. (But don't expect that pot to last during a crisis; it's not made for that purpose.)

Minimum you can lend: £10

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

FundingSecure

Size, history and types of loans: FundingSecure states there's around £320 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.

Note that FundingSecure's method for counting loans leads to double and triple counting, so the total lending will actually be many tens of millions lower than stated.

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, due to insufficient information.

Lender losses: FundingSecure expects annual losses are around 2.2% per year. While that is well covered by interest earned, it seems like a very high proportion of FundingSecure loans are rolled over or go late or bad, and there is simply not enough information to assess the real situation properly.

Most similar to: HNW Lending, MoneyThing and Lendy.

Average loan-to-value: The maximum LTV 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 needs to be a lot more transparent.

Interest rates: 11.2% average interest after 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: £25

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

ThinCats

Size, history and types of loans: Around £300 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 provide enough information for a rating.

Lender losses: Confirmed lender losses have been between 3% and 10% every year. That is the total losses in any annual batch of loans over the full life of those loans, so it is not the annual loss rate, which is lower.

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 ratesperhaps 7% after losses, but we don't have enough information. Available in an IFISA.

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.

Folk2Folk

Size, history and types of loans: £316,000,000 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 lenders have suffered no losses to date.

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 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 after a six-month wait for the same price you paid, provided there are lenders who want to buy the loan parts from you.

Minimum you can lend: £20,000!

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

EstateGuru

Size, history and types of loans: Around €145 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 reports no losses to lenders so far.

Most similar to: Relendex in terms of size and the variety of loans and optional auto-lend.

Average loan-to-value: EstateGuru does not separate development and non-development lending, which makes average figures meaningless. 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 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: 12.15% 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 currently unregulated, not even by the Estonian Financial Conduct Authority, which doesn't regulate P2P lending sites structured like EstateGuru.

Visit EstateGuru.

Downing Crowd

Size, history and types of loans: £110 million in loans completed since 2016. Downing does property-secured loans to trading businesses, such as pubs and care homes, typically for renovation and expansion.

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..

Lender losses: There have been no lender losses.

Most similar to: Octopus Choice in that Downing Crowd, the P2P lending site, is 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.

Average loan-to-value: We have no recent figures, although the maximum is 75%. This is based on Downing'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: 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 experts‘ Quick Expert Review on Downing Crowd.

MoneyThing

Size, history and types of loans: Over £90 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: MoneyThing does not provide details of losses.

Most similar to: HNW Lending and FundingSecure.

Average loan-to-value: No information, although the maximum LTV for non-development loans against current value is usually 70%, which is excellent.

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 initially provided a huge amount of information about itself to 4thWay, although we are long overdue an update and it does not provide detailed regular data on many areas.

Interest rates: up to 13%, but that's before losses or expected losses, since no figures are supplied. 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.

Minimum you can lend: £1.

See more of MoneyThing in our comparison tables.

BridgeCrowd

Size, history and types of loans: £69 million in loans completed since 2014, but we have no new information since July 2018. That figure includes around £10 million 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 July 2018. Prior to then, over 15 years, the same team has never lost any money on a loan, not even through the recession. We have no newer figures.

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% up to the mid-2018, but we have no newer figures. 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 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 is not transparent. We know it has experienced some bad debts and recovered at least some of them.

Interest rates: 10.80%.

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 BridgeCrowd  in our comparison tables, where you can also read one of our experts‘ Quick Expert Review on BridgeCrowd.

Invest & Fund

Size, history and types of loans: £65 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: no losses so far.

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. 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 below average on transparency in terms of providing information and statistics. Information on its website is very out-of-date and it doesn't yet have an ISA set up, which is unusual for its size, so we are not certain as to its future.

Interest rates: Between 8% and 10% before bad debts. We know it has some outstanding bad debts, but we do not know how much.

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.

Kuflink

Size, history and types of loans: £59 million since 2016 in bridging and development loans.

Kuflink’s 4thWay PLUS Rating: Unrated. Kuflink is too new for a rating and doesn't provide enough information.

Lender losses: Up until a few weeks ago, Kuflink was reporting no losses, but it no longer states that on its own website and it doesn't provide 4thWay with its data.

Most similar to: BridgeCrowd.

Average loan-to-value: No information supplied, but the maximum is 70% for non-development loans.

Average rents: Not applicable.

Other protections: None.

Place in the queue: First, second or third.

Transparency: Kuflink initially provided huge amount of information about itself to 4thWay. However, it is yet to provide regular detailed data on the history and performance of its loans. We know that debts have gone bad, but how many, and whether they have been fully recovered, is unknown.

Interest rates: Estimated 6% 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 experts‘ Quick Expert Review on Kuflink.

CapitalRise

Size, history and types of loans: £40 million since it started in 2016. It offers bridging loans and development loans, as well as some non-lending development products (which aren't covered here).

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.

Lender losses: No losses or bad debts at CapitalRise*, although it is a little bit behind in updating 4thWay.

Most similar to: CapitalStackers in terms of types of loans, processes, skill of the team and the thoroughness in selecting loan applications to approve.

Average loan-to-value: 71% 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 62%.

Other protections: None, although founders lend in a loans to an average of approximately 5%.

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

Transparency: CapitalRise has provided huge amount of information about itself to 4thWay.

Interest rates: 8%-12%, before losses. CapitalRise (very optimistically) forecasts zero losses. Available in an IFISA. It has committed to providing regular data but is a little behind, so we can't confirm if it is now suffering any bad debts.

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 and agree the price: you could sell your loan parts to them for more or less than you paid. The charge for leaving is 3%.

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

Relendex

Size, history and types of loans: £36 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: No lender has lost money yet through Relendex.*.

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: the LTV on non-development loans is around 61.40%, 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 around the same level.

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, and has not updated us for some time. Overall, Relendex is currently below average on transparency.

Interest rates: 8.35%. Note that no deduction has been made for estimated bad debts, although Relendex (very optimistically) forecasts zero losses, although some loans have turned bad and are in the process of recovery. Available in an IFISA.

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: Over €28 million exclusively on property peer-to-peer lendingdevelopment loans only – since 2015. Crowdestates is based in Estonia. However, Crowdestates has not provided an update on its figures for a long time and we are not certain it is still active. Right now there are no lending opportunities available.

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:€100.

Visit Crowdestates. It is not in our comparison tables due to lack of info.

Mintos

Size, history and types of loans: €4.1 billion has been matched in Mintos loans to borrowers in Latvia, Lithuania and Estonia (the Baltic States), and Georgia, Poland and the Czech Republic, but that high figure is probably misleading due to rolled over, short-term loans.

Around €24 million of the loans are homeowner mortgages, while the rest are not property loans. Loans are usually 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: Mintos' figures show that lender losses have been very low. Indeed, the outstanding bad-debt figures that it reports are so low as to potentially be implausible. We require more detailed data and information from Mintos to verify its claims.

Most similar to: JustUs 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). The highest we have seen is 91%.

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 a 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: 11.0% average interest after losses on property loans.

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: £9 million since 2017 in development loans and short-term (bridging) loans.

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

Lender losses: There have been no losses or bad debts so far.

Most similar to: Assetz Capital in that it does bridging and development loans, and sometimes loans to businesses secured on property, and that it offers automated lending or manual selection. It's most similar to BridgeCrowd in that there is no reserve fund but interest rates are at the upper end, being around 11%.

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: Usually first, sometimes second.

Transparency: BLEND has provided a lot amount of information about itself to 4thWay. It is very new though and, like lots of new P2P lending sites, it does not provide any detailed ongoing data and information about its loans.

Interest rates: Estimated 11% after bad debts.

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 experts‘ Quick Expert Review on BLEND Network.

JustUs

Size, history and types of loans: £7 million since 2013.

JustUs does all sorts of loans, including personal loans, but usually around 2/3s of its lending is 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.)

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.

Lender losses: None on JustUs' property loans.

Most similar to: Mintos and HNW lending.

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

Other protections: None. (JustUs will, at its discretion, pay for missed interest payments on some of its loans, but this never applies to property loans.)

Place in the queue: First or second.

Transparency: JustUs provides 4thWay with insufficient information to assess its risks, so it is below average on transparency, although its own website information and statistics for its website users are more acceptable.

Interest rates: 9.04% 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.

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.

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.

Removed from the list

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.

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.

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.

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.

Wellesley & Co.* has not offered new P2P loans for a long time.

FundingKnight has not offered new loans for a long time.

*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, 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.

14 responses to “25 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.

  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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What is the “4thWay”?

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

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

Why use 4thWay?

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

Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

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Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

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

Got it

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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.

Got it

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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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