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P2P Lending Showing Low Losses And Decent Returns

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By on 11 October, 2016 | Read more by this author

17 out of 30 P2P lending companies that have provided us with 100 data points have had zero or very low losses, and those represent the bulk of the loans made in the industry.

As a result, the vast majority of individuals lending money through P2P (probably around 200,000 people) have shown a great overall profit.

(You can see all the details and data points on each P2P lending company by visiting our comparison tables and clicking the checkboxes on the right to get all the details.)

Confirmed zero losses

6.7% interest.

£20 million lent since 2014 in secured and insured business loans. 

  • Assetz Capital* (Quick-Access Account, 30-Day Access Account, Great British Business and Green Energy Income accounts)

Up to 7% interest.

£120 million since 2013 in business and short-term property (bridging) and development loans, and property receiving rent, with reserve fund, auto-lend and early exit.

3.79% interest.

£10 million in residential buy-to-let loans since 2014, secured with reserve fund, auto-lend & early exit.

Up to 5.2% interest.

£35 million in personal loans since 2014, with large reserve fund, loan repayment insurance, auto-lend & early exit.

Approx. 10% after forecast losses with 12.7% earned to date.

£30 million since 2015 secured on cars and boats, and short-term property (bridging) and developments.

9% net interest after forecast losses.

£15 million since 2014 in secured loans to wealthy individuals against own homes and other property, cars, boats and fine wine, with early exit.

Up to 7% net interest after forecast losses.

£10 million lent since 2014 secured on commercial property receiving rent, with early exit.

Up to 5.4% interest.

£1.5 billion in personal, business and property development loans since 2010, with large reserve fund, auto-lend & early exit.

8.25% interest.

£6 million since 2013 in secured short-term (bridging) and property development loans, property receiving rent and wind energy projects, with early exit.

11.5% interest so far.

£10 million lent since 2014 in corporate bonds.

Up to 2.32% interest.

£350 million since 2013 in secured short-term (bridging) and property development loans, with reserve fund and early exit.

  • Zopa (Classic and Access accounts).

Up to 4.1% interest.

£1.7 billion in personal loans since 2005, with large reserve fund, auto-lend & early exit.

Either zero or very low losses

On the whole, those lending their money have no reserve funds but pay higher interest rates. Their records have been excellent, so that lenders can expect to have made a very decent risk-adjusted profit:

7.1% interest after losses.

£1.5 billion lent since 2010 in business and property development loans, with auto-lend and early exit.

11.2% interest after forecast losses.

£60 million since 2013 secured on cars and boats, and short-term property (bridging) and developments, with early exit.

Approx. 8% after losses.

£7 million since 2014 in business loans, with auto-lend and early exit.

Approx. 7.5% interest.

€5 million in personal loans, homeowner mortgages and property development to borrowers in the Baltic State.

Approx. 10% interest.

€7 million in payday loans and homeowner mortgages in Sweden and Spain, with auto-lend and early exit.

Average returns are 4.59%

Interest rates currently remain, even for lower-risk P2P lending options, considerably higher than savings accounts.

Average returns based on our Forecast Returns Index are 4.59%. Lenders wanting to earn 7%-13% interest on secured loans can do so by adding loans from companies like Proplend (rental property loans), HNW Lending (asset-secured loans to wealthy borrowers) as well as business loans platforms like ThinCats. (See the P2P Loans Feed for a daily (or even intra-daily) update on loans paying at least 7% interest that are secured on property that is valued at least twice as high as the loan.)

Visit 4thWay's comparison tables.

*Commission and impartial research: our service is free to you. 4thWay shows dozens of P2P lending accounts in our accurate comparison tables and we add new ones as they make it through our listing process. We receive compensation from ArchOver, Assetz Capital, Landbay, Lending Works, HNW Lending, RateSetter and Wellesley, 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.

2 responses to “P2P Lending Showing Low Losses And Decent Returns”

  1. Nicola Mckee says:

    I do not see the bridge Crowd on your list,are there any problems with this platform

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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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