Peer to Peer Lending Review
Peer to Peer Lending Review

New to peer to peer lending?

P2P lending lets you earn higher interest rates than banks offer. You decide where your money goes and what interest rate to lend at, making for a system that is fairer to lenders and borrowers alike. With the new innovative finance ISA you can lend tax-free within your ISA wrapper.

What is peer to peer lending?

Banks and building societies make money by lending your cash to borrowers at extortionately high rates, while paying you a pittance and pocketing the difference. New technology means you can cut out the middle man and earn far higher interest rates by lending directly to businesses and individuals, a system that is fairer to borrowers, fairer to lenders and more ethical - you choose exactly where your money goes and borrowers borrow at rates they know in advance that they can afford. That means no more unwittingly funding the arms trade and oil companies with your hard earned cash. Everyone is a winner, except the bank managers.


How it works

Businesses regularly need to borrow money in order to expand. When a business takes a loan from P2P lenders, the loan is split into hundreds or thousands of tiny bits called loan parts. You lend by buying loan parts which are then paid back to you every month with interest, over the course of a fixed number of months or years. If you need to access your money early, you can put your loan parts back on the marketplace and sell the remainder directly to other lenders. If you don't need to access your money, your repayments can be automatically reinvested.


Stock market rivalling returns

Peer to peer lending delivers interest rates that rival and often exceed the gains from investing in the stock markets, yet in several ways the risk is less. While the stock market fluctuates wildly as world events unfurl, companies are legally bound to pay back loans unless they declare bankruptcy, regardless of what's happening on the stock markets.


A wealth of options to choose from

The number of different peer to peer lending sites is growing at a bewildering rate, we aim to sort the wheat from the chaff and help you decide which ones are right for you.


Always remember: Spread your risk and diversify your lending

With all P2P lending sites your actual return may be higher or lower as your capital is at risk. Reduce your risk by spreading your lending through as many different companies and industries as possible.


Earn cashback

You can earn an extra £150 in new customer bonuses by signing up for P2P sites using the links on this website.


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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