Peer to Peer Lending Review
Peer to Peer Lending Review

Top 3 P2P Lending Sites for 2020

After researching the market extensively, these are the best P2P sites that we've evaluated:


Recently rising to first place in our rankings, RateSetter is the perfect choice for the hands-off, risk-averse investor. Simply pay in your money and Ratesetter does everything for you. Ratesetter has shot up to top our listings having now released an ISA meaning you can earn tax-free.


Ratesetter is unique among our recommendations because of its giant 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 £2,423,834,189 that has been lent on the platform to date earning its users £90,589,029.


Who's it for?

Best for people who want full automation, reliable 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 £1000 with Ratesetter.


Can I automate my lending?

The entire system is automated, simply deposit your cash and choose your loan duration and Ratesetter will match your funds with borrowers.


Can I access my money early?

If you think you may need to access your money early 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?

-Tax-free lending 

-20 million pounds of protection provided by the provision fund.

-Ratesetter does all the work for you.

-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, there is little scope for beating the advertised interest rate.


Funding Circle

Funding Circle is known for its simple platform. 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. As a consequence, their position on our scoreboard has slid down from top place. The change is great if you want simplicity but it does expose you to businesses that you might not have chosen to lend to, with little by way of protection.


An upside of this change is savvy lenders can no longer cream off the best loans. The downside is this means you can't try to be one of those savvy lenders.


Funding circle now offers an ISA so you can lend tax-free.


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?

7.2% (APR)


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

4.3% (APR)


Are there any perks?

There are currently no signup bonuses or investor rewards on offer.


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.


What are the Pros?

-Simple, easy, automated.

-Strong track record. 

-Tax-free lending.


What are the Cons?

-You can no longer evaluate the borrowers you are lending to or choose who you want to lend to.

Crowd 2 Fund 

Crowd2Fund were our first top-rated platform to offer the innovative finance ISA, a tightly regulated UK government scheme launched in 2016 to allow savers to lend within an ISA. This led them to take our top place for 2017, however as many of their more streamlined competitors have now done the same we've knocked them down the scoreboard accordingly. They still take a leading spot however due to their impressive due diligence resulting in a top quality pool of borrowers and a top notch rate of return. 


Who's it for?

Best for people who want complete control over who they choose to lend to and are happy locking their money away for up to three years.


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?

9.53% (APR)


Are there any perks?

Many of the businesses offer substantial rewards to investors including free and heavily discounted 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 be hard 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 each 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.

-Ability to ask borrowers questions about their financials.

-Tax-free lending.


What are the Cons?

-A limited range of borrowers.

-A minimum loan part size of £100.

Brexit Advisory

We advise taking extreme caution at this time when deciding upon any and all investments, P2P or otherwise. While P2P lending has shown several years of consistently strong returns, British businesses are now entering unchartered waters. Mass defaults could follow if the country is forced into recession. Do not invest what you can't afford to lose.

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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