How exactly does peer-to-peer lending work, and what are the risks involved? Here we explain all you need to know to make the most of your money.
Product information supplied has been provided by each individual brand not MoneySuperMarket
Peer-to-peer lending accounts - Short term access to your money - Ordered by expected annualised rate after fees and bad debt
Expected annualised rate after fees and bad debt
- Investors looking for 8-12% p.a. interest rate on peer-to-peer loans that are secured against property
- You can withdraw money before the term ends if there are other investors to buy your active loans (0.6% resell fee applies)
- No lender fee when you lend
- Your capital is at risk if you lend to businesses. P2P lending is not covered by the Financial Services Compensation Scheme
- Investments are illiquid (the inability to sell assets quickly or without substantial loss in value)
- To invest you must be aged 18 or over
Expected annualised rate after fees and bad debt
- Automatic diversification across a number of secured P2P loans backed by asset security and a discretionary provision fund
- Invest up to your annual ISA allowance of £20,000 tax free
- No limit on the number of ISA transfers from other providers
- You must be 18 years or older and have a UK bank account
- Your capital is at risk and your investment is not covered by the FSCS compensation scheme
- Access times cannot be guaranteed. Should the account become illiquid you may need to hold your loans for the remainder of their term
Expected annualised rate after fees and bad debt
- Automatic diversification across a number of secured P2P loans backed by asset security and a discretionary provision fund
- Invest up to your annual ISA allowance of £20,000 tax free
- No limit on the number of ISA transfers from other providers
- You must be 18 years or older and have a UK bank account
- Your capital is at risk and your investment is not covered by the FSCS compensation scheme
- Access times cannot be guaranteed. Should the account become illiquid you may need to hold your loans for the remainder of their term
Expected annualised rate after fees and bad debt
- Investors looking for a fair interest rate on peer to peer loans whilst having faster access to their funds in normal market conditions
- Invest up to your annual ISA allowance of £20,000 tax free with no transfer fees
- No limit on the number of ISA transfers from other providers
- You must be 18 years or older and have a UK bank account
- Your capital is at risk and your investment is not covered by the FSCS compensation scheme
- Access times cannot be guaranteed. Should the account become illiquid you may need to hold your loans for the remainder of their term
Peer-to-peer Innovative Finance ISA accounts - Ordered by rate
Expected annualised rate after fees and bad debt
- Invest up to your annual ISA allowance of £20,000 tax free or transfer previous years' ISAs
- Automatic diversification across a number of secured P2P loans backed by asset security and a discretionary provision fund
- You must be 18 years or older and have a UK bank account
- Your capital is at risk and your investment is not covered by the FSCS compensation scheme