Compare Our Best Rate for Peer to Peer Lending

Peer to peer lending offers the potential for large returns on your money by lending your savings to others, but rates aren't guaranteed.

Peer to peer investments put your capital at risk, and you may get back less than you originally invested. Returns are not guaranteed if the borrower defaults.

7 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Blend Network Peer to Peer Lending
You will invest in
Secured loans
Open with
£1,000
Target return
9.25% p.a.
Protection scheme
Own scheme
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in secured property loans.

Deposit Protection Scheme Information

Blend hold the first legal charge over properties within their portfolio. This means that if borrowers were to default on their loan, funds from the sale of the property would be paid to Blend first and passed on to lenders.

If the sale of a property did not cover the loan repayments Blend's protection fund may cover the shortfall. However, there is no guarantee that a claim will be approved, or that sufficient funds will be available.

In the event that Blend ceases trading, loans will be administered by a third party mortgage administration company; they will also hold the security of the first charge mortgages on the lenders' behalf.

The provision fund does not provide a guarantee and money is not covered by FSCS.

Eligibility
Minimum Initial Deposit£1,000
Kuflink Peer to Peer Lending
You will invest in
Secured loans
Open with
£100
Target return
7.44% p.a.
Protection scheme
Own scheme
Up to 4% cashback for new investors who invest at least £500. T&Cs apply.
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured against residential property.

Deposit Protection Scheme Information

Kuflink co-invest 5% alongside their users on a first loss basis.

Your capital is not guaranteed because it isn't covered by the FSCS.

Eligibility
Minimum Initial Deposit£100
easyMoney Premium Plus
You will invest in
Secured loans
Open with
£20,000
Target return
5.02% p.a.
Protection scheme
Own Scheme
Invest over £1,000 and get easyMoney plus membership which includes discounts and more cash back at over a thousand of the UK's leading retailers.
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured on property.

Deposit Protection Scheme Information

easyMoney investments are usually secured against property with a legal charge over the property asset. In the event a borrower cannot repay, the investors can collectively (together with the bank who typically holds the first legal charge) force the sale of the property in order to generate funds in an attempt to repay their investment and return.

They always state the amount that the property would need to fall in value versus its forecast sales value in order for their investors’ capital or return to be at risk. This will vary by investment and is a maximum of 75% but typically 33 to 39%.

Your capital is not guaranteed because it isn't covered by the FSCS.

Rate Tiers

The interest rate you receive will vary depending on the deals you choose to invest in. Investments that you can make using your ISA will typically have a rate of return between 3.67% - 8%.

Eligibility
Minimum Age18 years
Minimum Initial Deposit£20,000
Permanent UK Resident
easyMoney Premium IFISA
You will invest in
Secured loans
Open with
£10,000
Target return
4.03% p.a.
Protection scheme
Own Scheme
Invest over £1,000 and get easyMoney plus membership which includes discounts and more cash back at over a thousand of the UK's leading retailers.
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured on property.

Deposit Protection Scheme Information

easyMoney investments are usually secured against property with a legal charge over the property asset. In the event a borrower cannot repay, the investors can collectively (together with the bank who typically holds the first legal charge) force the sale of the property in order to generate funds in an attempt to repay their investment and return.

They always state the amount that the property would need to fall in value versus its forecast sales value in order for their investors' capital or return to be at risk. This will vary by investment and is a maximum of 65% but typically 33 to 39%.

Your capital is not guaranteed because it isn't covered by the FSCS.

Rate Tiers

The interest rate you receive will vary depending on the deals you choose to invest in. Investments that you can make using your ISA will typically have a rate of return between 3.67% - 8%.

Eligibility
Minimum Age18 years
Minimum Initial Deposit£10,000
Permanent UK Resident
easyMoney High Net Worth
You will invest in
Secured loans
Open with
£100,000
Target return
6.01% p.a.
Protection scheme
Own Scheme
Invest over £1,000 and get easyMoney plus membership which includes discounts and more cash back at over a thousand of the UK's leading retailers.
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured on property.

Deposit Protection Scheme Information

easyMoney investments are usually secured against property with a legal charge over the property asset. In the event a borrower cannot repay, the investors can collectively (together with the bank who typically holds the first legal charge) force the sale of the property in order to generate funds in an attempt to repay their investment and return.

They always state the amount that the property would need to fall in value versus its forecast sales value in order for their investors’ capital or return to be at risk. This will vary by investment and is a maximum of 75% but typically 33 to 39%.

Your capital is not guaranteed because it isn't covered by the FSCS.

Rate Tiers

The interest rate you receive will vary depending on the deals you choose to invest in. Investments that you can make using your ISA will typically have a rate of return between 3.67% - 8%.

Eligibility
Minimum Age18 years
Minimum Initial Deposit£100,000
Permanent UK Resident
easyMoney Classic IFISA
You will invest in
Secured loans
Open with
£100
Target return
3.08% p.a.
Protection scheme
Own Scheme
Invest over £1,000 and get easyMoney plus membership which includes discounts and more cash back at over a thousand of the UK's leading retailers.
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured on property.

Deposit Protection Scheme Information

easyMoney investments are usually secured against property with a legal charge over the property asset. In the event a borrower cannot repay, the investors can collectively (together with the bank who typically holds the first legal charge) force the sale of the property in order to generate funds in an attempt to repay their investment and return.

They always state the amount that the property would need to fall in value versus its forecast sales value in order for their investors' capital or return to be at risk. This will vary by investment and is a maximum of 65% but typically 33 to 39%.

Your capital is not guaranteed because it isn't covered by the FSCS.

Rate Tiers

The interest rate you receive will vary depending on the deals you choose to invest in. Investments that you can make using your ISA will typically have a rate of return between 3.67% - 8%.

Eligibility
Minimum Age18 years
Minimum Initial Deposit£100
Permanent UK Resident
Proplend Innovative Finance ISA
You will invest in
Secured loans
Open with
£1,000
Target return
Variable
Protection scheme
Own scheme
Your money won't be protected by the FSCS so make sure you understand the risks before you apply.
Investment type

You will invest in loans secured by income producing commercial property.

Deposit Protection Scheme Information

Proplend as a minimum holds a first legal charge over every property included in the security package. This means that if borrowers default on their loan repayments, the property can be sold in order to redeem lenders in order of priority (Tranche A, followed by B and then C).

Proplend doesn't hold a provision fund but instead holds an interest reserve (typically six months') on a loan-by-loan basis to be used in the event that a borrower fails to make an interest payment on time.

These funds are financially separated so would be protected if Proplend stopped trading. If this were to happen then a backup service provider would step in to manage loan repayments so lenders continue to receive any money that is due. Your capital is not guaranteed by the FSCS.

Rate Tiers

Loans are split into three different LTV based tranches, allowing lenders who have different risk profiles and return requirements all to participate in the same loan.

The interest rate is fixed for the term of the loan, interest is paid to you monthly. Capital will be repaid at the end of the term.

Eligibility
Minimum Age18 years
Minimum Initial Deposit£1,000
Permanent UK Resident

Last updated: 22 March, 2021

What is peer to peer lending?

Peer to peer lending is also known as P2P lending. It's when someone who wants to lend their savings is matched up with someone who wants to borrow money.

The lender wants to see a good return on their investment and the borrower wants a low interest rate.

It's not the same as using a savings account. There is more risk involved. It's investing, more than it is saving.

How does peer to peer lending work?

You could lend to an individual, a start-up business or even a group of individuals.

You'll lend through a specially designed peer to peer lending platform. These lending companies are usually run online. There's usually a minimum amount you'll have to invest.

You'll be able to send money to the P2P lending platform and choose who to lend to. They'll then repay your money, with interest, over a fixed term. This can range from a month to six years.

The peer to peer lending platform you're using will chase the repayments on your behalf, so that can be helpful as it minimises the input needed from you.

Is investing in P2P lending worth the risk?

Peer to peer lending, UK wide, can offer a higher return than savings accounts. That's because your money is lent to people and businesses. But the important thing to remember is that this comes with far more risk. If someone borrows your money, you could lose some or all of it if they don't repay you.

Money invested in peer to peer lending isn't protected under the Financial Services Compensation Scheme (FSCS). This means you could lose your money if the company goes bust.

You should only really invest in peer to peer lending if you can afford to lose the money, if the worst happened.

How can I find the highest return on peer to peer lending, UK wide?

Our peer to peer lending account comparison table above will help you find the highest return on P2P accounts.

But it's crucial that you understand the risk before you invest. Here's more information on how peer to peer works and some of the risks.

What exactly are the risks of P2P lending, UK wide?

P2P lending, UK wide, comes with many risks.

If your investment isn't repaid by the borrower, there's a chance you could lose some or all of your money. There are no guarantees.

If you put your money into a savings account, you'll get £85,000 of protection under the Financial Services Compensation Scheme (FSCS). This means that if your bank went bust, you'd be protected. But peer to peer lending isn't covered by the FSCS.

Many P2P lending platforms have their own financial compensation scheme. These are designed to protect you from failed repayments from borrowers. But, these schemes have caps on them. So, if lots of borrowers miss their repayments, there's still a chance you could lose your money.

Are P2P lending accounts taxed?

You do have to pay tax, but unfortunately this won't be taken automatically by the P2P lending company you're using.

You'll have to do a self-assessment form for HMRC each year, to declare how much money you've made from your peer to peer lending.

The exception is when you invest in an innovative finance ISA. These are tax free.

Here's more information on how investments are taxed

Do all investments in peer to peer lending, UK wide, offer a fixed return?

No, they don't all offer a fixed return. Some peer to peer lending companies offer a variable return instead. This gives you the opportunity to choose how much you get.

Sometimes, a P2P lending company matches you with potential borrowers, which could be a person or business. Then, you and other investors bid to lend your money to them.

If a borrower accepts your bid, they'll borrow your money over a set term. They'll pay you back monthly as if they were paying back a loan to a bank.

You could get a higher return compared to a fixed P2P account by doing it this way. However, you could also get underbid by another investor and have to wait longer to start making money.

Can I invest as much as I want into P2P lending, UK wide?

In days gone by, you could have done. But the Financial Conduct Authority rules changed in 2019.

Now, peer-to-peer lenders can't put more than 10% of their investable assets into peer to peer lending. And they must not invest their main residence.

What impact has the Covid-19 pandemic had on peer to peer lending?

The Covid-19 pandemic has had a considerable impact on P2P lending.

Some lenders have been left unable to access their money, due to the effects of the pandemic on borrowers.

Can I get my money out early?

Some P2P lending platforms give you the opportunity to get your money out early. They do this by matching your existing loans with alternative lenders.

However over the past year there hasn't been as much demand due to the pandemic. You might have to wait months to get your money out.

Peer to peer lending FAQs

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