Where Can You Buy Or Sell Existing Loans?

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This page was last updated on 20 June, 2018

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
Abundance Generation No Yes
BLEND Network Sell: 0.6% Yes
Bondora No Yes
Bridgecrowd* No No
CapitalRise Sell: 3% Yes
CapitalStackers* No Yes
Crowd2Fund* Sell: 1% Yes
Crowdstacker Sell: £15 No
Folk2Folk No No You have to hold the loan for six months before you can sell; you don't have sell your full loan but must sell in blocks of £20,000 each!
Funding Empire Sell: 0.5% Yes, capped at +/-3%
FundingKnight Sell: 0.25% Yes  You can sell a fraction of your loan holding if you want; you can sell loans that are running late but not those in bad-debt recovery procedures
FundingSecure No Yes, capped at +/-1% No trading when just 30 days remaining; accrued interest passed to new lender, which can lead to a tax loss (see below)
HNW Lending* Sell: 1.5% Yes Completely open market: can even sell impaired loans
Invest and Fund No Yes, capped at +/-10%
JustUs No Yes, capped at +/-3% This secondary market is currently being redeveloped, although you can still ask JustUs and it will try to accommodate any sale wishes
LandlordInvest Sell: 0.25% No This secondary market is due to be launched in May/June 2017
LendingCrowd* Sell: 0.5% No  This applies to LendingCrowd's self-select account/ISA. See the other table below for other products
Lendy No No You can sell a fraction of your loan holding if you want; you can potentially sell late loans but not loans that have gone bad; you earn no further interest on loan parts while they are listed for sale
Madiston LendLoanInvest Buy: 25p+0.25%;
Sell: £1+1%
Yes
Mintos Sell: 1% Yes, capped at +20%/-99% Completely open market: can even sell impaired loans
Money & Co. Sell: 0.25% Yes
MoneyThing No No
Proplend* Sell: 0.5% Yes
rebuildingsociety* Sell: 0.5% Yes, capped at +/-5% You can sell loans that are late (but not easy with a -5% cap)
Relendex No Yes
SAVY Sell: 1% Yes
ThinCats Sell: 1% Yes
UK Bond Network No Yes
Viventor No Yes

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.

More on how these secondary markets work under The easy-to-use secondary markets in Trading Loan Parts At A Profit Or Loss.

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 None.
Landbay* None for its Tracker Account; 0.2% for its Fixed-Rate Account and IFISA.
LendingCrowd* LendingCrowd's automated Growth and Income Accounts/ISAs charge you 1% when you sell.
Lending Works* 0.6% selling fee and minimum £20 fee. Interest rate adjusted to stop new lenders losing out if necessary. A £20 fee works out at a hefty 2% on a £1,000 loan, but still less than the interest earned in about half a year.
RateSetter* None for its easy-access account, for which it even sets aside extra cash to help aid your swifter exit. The 1-year account charges 0.3% and the 5-year account charges 1.5% if you leave early.
Wellesley & Co.* No fee, but sellers might receive less back to reflect the fact that you would have earned less interest had you chose an shorter lending period.
Zopa 1% selling fee and interest rate adjusted to stop new lenders losing out if necessary.

*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, Crowd2Fund, HNW Lending, Landbay, LendingCrowd, Lending Works, Proplend, RateSetter, Rebuildingsociety, Relendex 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.

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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