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follow my workings #1

I get the 7% figure using the “Individual investor earnings by portfolio” table in the Crowd2Fund statistics. Hover over the “divested” (sold) loan bars and add the percentage figures shown to 100% – 100% being all the graph’s bars in between, representing 100% of all the loans that have not been sold. Then add up… Read more

in default

A loan that is in default is a bad debt. Usually, a peer-to-peer lending company will class a loan as in default when the borrower has missed several payments or when the peer-to-peer lending company has started recovery proceedings. P2P lending companies also might class a loan as in default if it needs to be extended… Read more

testing: if a property is valued at

Testing: If a property is valued at £100,000 and the borrower borrows £70,000 then this is 70% loan-to-value (or 70% LTV). It means that lenders have an estimated buffer of 30% if the property needs to be sold to recover the debt, which is particularly useful if the property market falls. Read more about loan-to-value. Testing:… Read more

resolution event

Resolution event is a phrase used by some P2P lending sites that have reserve funds, which are segregated pots of money set aside to cover lenders’ expected bad debts. In the event the fund is completely depleted, these P2P lending sites will call a resolution event, which means they’ll pool all outstanding loans, so that… Read more

floating charge

A floating charge is any security that the borrower is usually allowed to use up, which could be business plant and machinery, or cash in the bank. It is a far weaker form of security than a fixed charge, since there might be no security left by the time the borrower becomes unable to repay… Read more

fixed charge

A fixed charge is any security that the borrower is not usually allowed to sell or destroy, so that P2P lending sites can be more confident the security will be available to repossess and sell in the event the borrower is unable to repay in full. Read more about fixed charges and security.

spv

An SPV or “special purpose vehicle” in peer-to-peer lending is a company that is set up exclusively to house a loan, or multiple loans, on behalf of lenders. If set up correctly, it ringfences the loans so that any repayments and interest due to be paid by borrowers can’t be diverted to the peer-to-peer lendingRead more

peer-to-peer lending

Peer-to-peer lending is lending to borrowers through online and electronic lending platforms. Loan repayments and interest due to be paid to lenders are ringfenced and can’t be diverted away to pay the platform’s own bills or debts. Read a deeper definition of peer-to-peer lending.

testymctestface

The 4thWay Risk Scores are an estimate of the potential tests of testymctestface in a severe recession, with lower scores being better. They don’t take interest rates, reserve funds or testymctestface into account and instead focus entirely on the scale of written-off loans. There are other risks to P2P lending and P2P IFISA lending, which… Read more

securitised lending

Securitised lending (or securitisation) in P2P lending is when a P2P lending site packages more than one loan together and sells the whole lot to institutional lenders. This is not common in P2P lending, but it will happen more as P2P lending sites grow.

Today’s average interest rates

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.
Learn more.

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

×

Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

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

Got it

×

Why are Orchard’s interest rates different?

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

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

Got it

×

Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

Got it

×
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