Peer To-Peer Lenders are Offering Rates Up to Five Times Better Than Standard Best Buys

The leading peer to peer lenders are presently offering rates five times higher than the best offerings on the standard savings market.

It comes as a fresh challenger bank recently launched called PCF, which currently offers a fixed rate up to 2.5% on savings*.

If you look at the terms for the highest rate which comes with the usual backing of the Financial Services Compensation Scheme (FSCS) protection, seven years is quite a long time to park your cash. Savers with the right risk attitude could improve the situation by taking a bit more of a calculated and controlled risk via a peer to peer platform.

P2P investors can get around 6%** each year for supporting customer loans, even while using the newer  Innovative Finance ISA (IFISA).

For example, Zopa offers a rate of 3.9% for its main product or 6.1% for those ready to lend at a higher risk.

Preferably, LendingWorks presently offers rates of around 5% on its insurance-supported basis.

It therefore goes without saying that rates in the business peer-to-peer lending market have a tendency to be higher.

Secured business lender, Folk2Folk is presently offering up to 6.5%, while Funding Circle investors can acquire 7.2% for unsecured loans to small businesses.

Investors can acquire slightly bigger returns with ThinCats, which is putting forth up to 8.5% on secured loans.

Landbay, a P2P buy-to-let lender, is offering investors 3.75% returns on loans that are secured on property.

Another alternative is loans secured on invoices, as offered by MarketInvoice. The invoice finance P2P loan specialist has given gross yields of up to 8% in earlier years and is on 4.83% so far in 2017.

At present, RateSetter offers rates at 3.3% on its easy access rolling market account, 2% for a one-year fixed term and 4.6% for 5 years.

These are recently the rates being offered from members of the Peer2Peer Finance Association (P2PFA), which make up the lion’s offer of the peer-to-peer space.

There are other choices…
For instance, Assetz Capital, a secured business lender, offers returns between 3.75% to a whopping 18%!

Meanwhile, ArchOver offers about 9% while Money&Co, established by City superwoman Nicola Horlick, offers 8.5 to 10%.

In the property market, development loan supplier Relendex offers shareholders up to 10% while LandlordInvest gives investors 5 to 12%t on buy-to-let loans.

Platforms will have various levels of risk that’s why it is still worth (and you should always) doing your due diligence and checking the types of borrower, underlying assets, and default rates.

However, statistics show that mainstream savings market still fails to cope and compete with peer to peer lenders.

Current summary:

Type of loan
Projected return
Assetz Capital
Business and property
3.75 to 18%
5 to 12%
Secured business
Up to 10%
Up to 10%
Secured business
Up to 9%
Up to 8.5%
Invoice finance
Funding Circle
Unsecured business
Secured business
3.9 to 6.1%
Up to 5%
Consumer, business and property
3.3 to 4.6%

Don’t forget to take a look at Stratosphere peer to peer lending (browse this website) and see our competitive deals and rates coming soon focusing on property secured borrowing.

Please Note: Your Capital Maybe at Risk

All the above firms and example rates shown above are current at the time of publication . Please visit the individual sites for the latest rates and ensure you have carefully read the terms and conditions.

* See terms and conditions for full details