Catastrophe In P2P Pensions

Click "Learn" to get help

By on 1 December, 2016 | Read more by this author

The operators dealing with P2P lending in the Evolution SIPP, which is possibly the best pension for P2P lending, have just announced that they will not allow new P2P lending.

In addition, other pension providers offering P2P lending might reduce or remove their services for non-advised P2P lending.

The Evolution SIPP

The Evolution SIPP is run by SIPPclub which is not a pensions operator itself.

Instead, it uses the Evolution SIPP name to collate together a variety of different investments that can be put into a pension, with one or more pension operators running the actual pension plans and various investments in the background.

The key operator for P2P lending within the Evolution SIPP has been Greyfriars. Greyfriars has said that it plans to stop allowing new P2P lending from 1 January 2017, due to the time it takes for it to administer P2P lending.

It seems that it has no automated processes for trading loan parts and the growth in popularity of P2P lending has increased the burden on the pension operator too far.

This is potentially a big blow, since the Evolution SIPP has offered the largest range of P2P lending options. (List at the end of this article.) SIPPclub director Brian Bennis has told us that they are in talks with back-up operators, so let’s hope it finds a replacement soon.

The Evolution SIPP is available to high-net worth individuals only. P2P pensions are invariably suitable for people with a lot of money. See our comprehensive P2P Pensions Guide for more. You might also be interested in How Is P2P Lending Is Taxed?

Pension providers might allow P2P only to people who get advice

The regulator recently sent an update encompassing pension providers and financial advisers. As a result, pension operators that offer P2P lending and a wide variety of other non-typical investments are seriously mulling over covering their backs by accepting applications through financial advisers only. This is an over reaction to the regulator’s announcement, which was only meant to stop businesses that were not acting responsibly.

Hopefully, not all the choice of P2P pensions disappears for those of us who like to advise ourselves. I’ll keep you posted.

Opportunities that are/were available in the Evolution SIPP

Ablrate, business loans (especially against aircraft).

Abundance, business (renewable energy projects).

Archover*, business.

Assetz Capital*, business and property.

CapitalStackers, property.

CrowdProperty, property.

Crowdstacker, business.

FundingKnight, business and property.

HNW Lending*, short-term property and high-value pawnbroking.

Money&Co, business.

Proplend*, property.

RateSetter*, mostly personal loans but some business and property.

rebuildingsociety*, business and property.

Relendex, property.

Saving Stream, property.

ThinCats, business and property.

UK Bond Network, business.

Leave a Reply

Your email address will not be published. Required fields are marked *

Today’s average interest rates

4thWay® Forecast Returns Index: 4.48%

Showing average expected interest rates for individual lenders after fees and bad debts if you lend today.
Read about the first P2P lending index.

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 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.

Got it

×

Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

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

Got it

×

Why are Wellesley’s interest rates different?

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

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

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

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

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

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

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

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.

×
Back to top
Simple Share Buttons
Simple Share Buttons