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Proplend extreme variation in interest rates

I have been using other P2P sites and have recently started lending with proplend, which seems to have good rating on 4thWay. I understand that the different loans are all rated A, B or C, based on the Loan to Value ratio. However, even within the same band, there sometimes seems to a vast difference in the offered interest rates. For example I have 3 group C loans (66-75% LTV) , but the interest rates are 9.75%, 12.03% and 19.75%! I suppose I am wondering why they felt they had to offer such a high rate of 19.75% for this loan, and whether this is too good to be true!

Comments

  • Clearly assessed as high risk!

  • Proplend quite recently introduced loans on property developments as well as loans against properties that require planning permission. These are intrinsically higher risk than its rental property loans and therefore Proplend charges much higher interest rates.

    Note that 4thWay's PLUS Ratings for Proplend refer solely to their rental property loans. Their development and bridging loans are not yet rated by 4thWay, largely down to the fact that more time and data is required before a rating would make any kind of statistical sense.

    Take a look at 4thWay's Proplend Review for a little more information: https://www.4thway.co.uk/candid-opinion/proplend-review/

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