Peer to peer lending in uk — reviews including Zopa Review

  • Rate setter
  • Funding Circle
  • Funding Secure
  • Lendy
  • Assetz capital
  • Lend invest
  1. You can start with low minimal investments
  2. The rates of return are higher than in the bank
  3. You can reduce your risk by buying 20–30 investments on the same platform. Meaning that even if 10% go wrong, your returns are still OK
  4. A small percentage of these platforms offer higher returns (10%+ per year) in return for more risk.
  5. It is easy to set up with good tech for making payments and withdrawing
  6. From the point of view of the person borrowing the money, they are getting a better deal than some commercial loans, due to the competition. This is a positive for them, rather than the investor, however.
  1. It isn’t always tax-advantageous. This further affects net returns
  2. It doesn’t give you broad, diversified, international exposure.
  3. In some cases, there are no insurance or government protections against defaults. This includes FSCS and other forms of government protections, although some exceptions exist.

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