Where Can You Buy Or Sell Existing Loans?
This page was last updated on 22 April, 2021
See a list of all the peer-to-peer lending secondary markets, how much they cost and whether you can buy and sell loans at a discount or premium.
A peer-to-peer lending secondary market – or marketplace – allows you to buy and sell existing loans after they have already begun.
Why would you do this? Because it can be quicker, safer or more profitable:
- You might sell because you need the cash before the loans are repaid.
- Or you sell because you think the borrower is not as safe as you previously thought.
- You might buy and sell at a higher price to make a profit. (More on that in Trading Loan Parts At A Profit Or Loss.)
- You might buy existing loans because they have become safer – for example, because a property-developer borrower has completed the property's foundations without problem, so the risks of delays or budget problems has decreased.
- Buying existing loans can also be quicker than waiting for new loans to become available. You can simply start lending straight away by buying out another lender who wants to sell.
There can also be reasons not to buy and sell on the secondary market. You can also read about those in Trading Loan Parts At A Profit Or Loss.
It's these secondary marketplaces that allow us to exit loans early or to start lending right away instead of waiting for new loan deals to close.
Below, we show you all the P2P lending websites with secondary markets and a few details about them, such as the costs of using them or if you can sell impaired loans (e.g. loans that are late or have gone bad).
Peer-to-peer lending secondary markets where you can set prices
If you want to be able to sell your loan parts for more or less than you paid, at a price you specify, most of the following P2P lending websites offer this.
This means you might have lent £1,000 and now you want to sell your loan part to someone else for, say, £900 to sell quickly, or make a profit by selling it for £1,100. Or you could be the buyer of that loan part.
With these marketplaces, the seller of the loan part usually sets the prices and then buyers choose whether to buy or not.
To find out why you might buy or sell at a discount or a premium, rather than “at par”, read Trading Loan Parts At A Profit Or Loss.
Some platforms cap the size of any discount or premium, e.g. at 3%. So a £1,000 loan part could be sold for no less than £970 and no more than £1,030.
Here's the list of secondary markets where you can set prices:
|P2P Lending Website||Fees||Can Sell At Premium/Discount||Notes|
|Ablrate||No||Yes||You can set loan prices to sell or buy. No trading when just one payment is remaining|
|BLEND Network||Sell: 0.6%||Yes||No selling when a payment is missed; the new lender buys any accrued interest that has not been paid out at face value, which can lead to a tax loss (read more)|
|Folk2Folk||Sell: 0.5% or £250||No||0.5% of the loan value or £250, whichever is higher. You have to pay the first £250 of that just to list your loan on the secondary market, i.e. regardless of whether you successfully sell|
|Funding Empire||Sell: 0.5%||Yes, capped at +/-3%|
|HNW Lending*||Sell: 1.5%||Yes||Completely open market: can even sell impaired loans|
|Invest & Fund||Sell: 0.25%||No|
|JustUs||No||Yes, capped at +/-3%||You can't sell loans that have run for less than one month or have one month remaining, and you can't sell loans in arrears|
|Kuflink*||Sell: 0.25%||No||Available in Kuflink's Self-Select account only (not its automated accounts)|
|LandlordInvest||Sell: 0.5%||Yes, discount only, capped at -20%||You can't sell loans that have just one month remaining or that are in arrears|
|LendingCrowd*||Sell: 0.5%||No||This applies to LendingCrowd's self-select account/ISA. See the other table below for other products|
|Madiston LendLoanInvest||Sell: 1.5%||Yes|
|Mintos||Sell: 1%||Yes, capped at +20%/-99%||Completely open market: can even sell impaired loans|
|Money & Co.||Sell: 0.25%||Yes|
|rebuildingsociety*||Sell: 0.5%||Yes, capped at +/-5%||You can sell loans that are late (but not easy with a -5% cap)|
|SoMo||No||Yes, discount only|
Peer-to-peer lending secondary markets for quick entry/exit only
Some secondary markets really only exist to be a way to exit your loans early or to start lending swiftly without waiting for new loan auctions to close. Sometimes you don't even really see they exist; you just see that one minute you're lending and the next minute – after you clicked a few buttons to sell loan parts – you're not. It all happens automatically behind the scenes.
These markets are not to make a profit. The advantage of them is that they are dead simple to use.
While they are very simple to use, these secondary markets don't let you choose either the price you sell at, nor can you choose the specific borrowers or loans you want to sell. You just state the amount you want to sell and wait for new lenders to be allocated the loan parts.
Whereas you can specifically choose to sell, you cannot specifically choose to buy on these secondary markets. Instead, when you want to lend through one of these P2P lending sites, they will either allocate you new loan parts, secondary market loan parts, or a mix of both. You get no say in the matter.
In addition, you can't sell at a premium but you might have to receive less back. This is to compensate the new lender in the event that they buy your loan parts paying, say, 5% interest when they would have got, say, 6% interest if they had lent their money at the latest rates to a brand new borrower.
Here's the list of peer-to-peer lending secondary markets for quick exit or entry only:
|P2P Lending Website||Fees And Adjustments|
|Assetz Capital*||None. For its easy-access account it even sets aside extra cash to help aid your swifter exit.|
|Funding Circle||1.25% paid to the buyer by the seller.|
|LendingCrowd*||LendingCrowd's automated Growth and Income Accounts/ISAs charge you 1% when you sell.|
|Loanpad*||None with 60 days' notice; otherwise 1%.|
|Lending Works*||0.5% selling fee. Interest rate adjusted to stop new lenders losing out if necessary. If you keep the money on Lending Works, you can request a refund of the 0.5% selling fee once the money is lent again.|
Peer-to-peer lending sites that don't allow you to sell
- Kuflink (It's Auto-Invest accounts don't allow sales)
- Sourced Capital
*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 Assetz Capital, Crowd2Fund, HNW Lending, Kuflink, LendingCrowd, Lending Works, Proplend, Rebuildingsociety and Relendex, 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.