There are many FCA regulated peer-to-peer lending businesses operating in the UK market today.
In fact, there are so many that it’s become difficult for private investors to recognise the differences between the various platforms without dedicating a significant amount of time towards researching each platform individually.
To help tackle this problem, I’ve written a four-part guide providing a useful overview of the UK-based peer-to-peer lending platforms operating within the consumer, business and property-backed P2P lending sectors.
In particular, I will aim to provide an overview of:
- Type of loans provided
- Secured vs. unsecured debt and the seniority of debt security offered
- Target interest rates and cashback offers
- Existence of a provision/protection fund
- Term length of underlying loans
- Availability and cost of using secondary market to gain early access to funds
- Options for self-select / automatic lending
- Availability of IFISA accounts
Hopefully you will find this useful in beginning your assessment of the risk/return offered by various platforms. After reading this guide, you will need to do your own research to understand the risks and potential rewards of each platform/lending opportunity before investing your own funds.
Start reading our peer-to-peer lending guide by clicking the links below: