P2P Lending Review
P2P Lending Review
Peer to Peer Lending Review
Peer to Peer Lending Review

Top 3 P2P Lending Sites for 2017

After researching the market extensively, these are the top P2P sites that we've had the pleasure of using:

Crowd 2 Fund

Crowd2Fund stands out from the crowd because unlike our other two favourites they already offer the innovative finance ISA, a tightly regulated UK government scheme launched in 2016 to allow savers to lend within an ISA. The more established sites have struggled to adapt to the specifications required to provide the IFISA creating a gap in the market that Crowd2Fund filled.


The cherry on the cake is that Crowd2fund to date* have never lost a penny of their lenders' money. Since we began using the site only one business we have lent to failed to make their repayments and in this case, Crowd2fund stepped in refunding both our lost funds and lost interest. 


Who's it for?

Best for people who want to choose who they lend to and are happy locking their money away.


What interest rate does Crowd2Fund estimate lenders will receive?

8.7% (APR)


What interest rate (after fees and losses) are you currently earning with Crowd2fund?

9.18% (APR)


Are there any perks?

Many of the businesses offer rewards to investors ranging from freebies to heavy discounts on their products.


Can I automate my lending?

A "Smart-Reinvestment" feature lets you choose to automatically reinvest repayments you receive based on a minimum interest rate you select.


Can I access my money early?

You can resell your loan parts on a secondary market if you need your money sooner than expected. As Crowd2Fund is a smaller provider it may take some time to find buyers for your loan parts, we recommend you only use this provider if you're prepared to lend your money for the full term specified in the loan.


What is the minimum you can lend?

Loan parts must be upwards of £100.


What are the Pros?

-Well vetted borrowers with detailed information.

-Tax-free lending.

-Great for drip feeding. A winning strategy is logging in a couple of times a month and choosing three or four companies to lend £100 each to.


What are the Cons?

-A more limited range of borrowers means it may take some time to lend all your money.

-A minimum loan size of £100 means that to have the best chance of a high overall return you should be investing upwards of £10,000. This will enable you to follow the golden rule of not lending more than 1% of your bankroll to any one company which will protect you in the event of defaults.


Funding Circle

Funding Circle is known for its simple automated platform and efficient marketplace. Having thousands of businesses to lend to allows you to spread your lending thinly reducing your risk. A busy marketplace means you can expect easy to access your money if you need it earlier than expected.


Since September 2017 Funding Circle has automated all lending between approved lenders and borrowers. This is great if you want simplicity and if you don't want to choose who to lend to yourself. Another upside of this change is savvy lenders and bots can no longer cream off all the best loans. The downside is this means you can't try to be one of those savvy lenders earning far above Funding Circle's estimated return. Overall, the change makes Funding Circle fairer for everyone and progresses the platform's aim of being ideal for beginners. Funding Circle says the change will also mean lenders will be better diversified which should reduce your risk.


Who's it for?

Ideal for people who want a simple service and access to their funds.


What interest rate (after fees and losses) does Funding Circle estimate lenders will receive?

7.5% (APR)


What interest rate (after fees and losses) are you currently earning with Funding Circle?

8.9% (APR)


Are there any perks?

Join through the link below to earn £50 cashback.


Can I access my money early?

As it's one of the largest operators it doesn't take long to sell loan parts if you need early access to your funds. 


What is the minimum you can lend?

There is no minimum lend. Funding Circle lends out your funds in chunks of 0.5% of the current total size of your portfolio with no more than this amount lent to any one company, loan parts are up to £100 in size.


What are the Pros?

-Simple, easy, fully automated, invest and forget.

-Strong track record - over £2.5 billion lent to date.

-Trusted by government-backed lenders.


What are the Cons?

-You can't choose who you want to lend to yourself.

-Funding Circle hasn't yet launched an IFISA meaning you'll be liable to pay tax on any annual earnings over your £1000 allowance.

Rate Setter

Coming in at third place, RateSetter is the perfect choice for the hands-off, risk-averse investor. Like with Funding Circle you can simply pay in your money and Ratesetter does everything for you.


Ratesetter is unique among our recommendations because of its large provision fund that provides a buffer in the event that borrowers are unable to repay. At the time of writing the size of Ratesetter's provision fund is £20,409,498. The fund has ensured that not one of Ratesetter's 56,909 individual investors has lost a penny of the £2,069,363,339 that has been lent on the platform to date.


It's worth investing at least £1000 with Ratesetter in order to pocket their £50 cashback offer and have a float of easy to access cash.


Who's it for?

Best for people who want simplicity, access to their funds and have little appetite for risk.


What interest rate (after fees and losses) does RateSetter estimate lenders will receive?

4.8% (APR)


What interest rate (after fees and losses) are you currently earning with RateSetter?

6.2% (APR)


Are there any perks?

Join through this link to earn £100 cashback once you've invested £5000 with Ratesetter.


Can I automate my lending?

The entire system is automated, simply deposit your cash and you're ready to go.


Can I access my money early?

If you think you may need to access your money early, Ratesetter is our top pick. Simply invest your funds in Ratesetter's rolling market and you can withdraw at any time in exchange for a slightly lower interest rate.


What is the minimum you can lend?

Ratesetter has no minimum lend.


What are the Pros?

-Over 20 million pounds of protection provided to Ratesetter investors by the provision fund.

-Ratesetter does all the work for you.

-While you can earn better rates elsewhere, with Brexit looming Ratesetter is increasingly seen as the safest P2P option.


What are the Cons?

-As you can't choose who you're lending to with Ratesetter there is little scope for beating the advertised interest rate.

-Rate Setter hasn't yet launched an IFISA meaning you'll be liable to pay tax on annual earnings over your £1000 allowance.

Remember, your actual return may be higher or lower as your capital is at risk, past performance is not an indicator of future success. You can reduce your risk by spreading your lending through as many different companies as possible.


*All numbers correct at time of writing.


This website is not a Registered Investment Advisor, Broker/Dealer, Financial Analyst, Financial Bank, Securities Broker or Financial Planner. The Information on this site is provided for information purposes only. The Information is not intended to be and does not constitute financial advice, is general in nature and not specific to you. Before using this site's information to make an investment decision, you should seek the advice of a qualified financial advisor and undertake your own due diligence. None of the information on this site is intended as investment advice, recommendation, endorsement, or sponsorship. The company is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions. This site is funded through referral fees, we never let these fees affect our reviews in any way.

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