Compare peer to peer lending platforms which allow you to earn interest on money like a loan provider. These peer to peer lending platforms connect you and your money with someone looking to borrow a sum of money. As the customer repays the balance overtime, you get your money back plus interest.
| Peer to Peer Platform | Description | Loan Types | Interest Rates | User Interface | Protection Scheme | Open Account |
|---|---|---|---|---|---|---|
| easyMoney | Leading peer-to-peer investing platform in the UK, offering investments secured against U.K> properties. | Loans Secured against UK property | 5.53% – 10.00% p.a. | User-friendly website and app | High | Open Account |
| Kuflink | Peer-to-peer investing platform offering investment opportunities secured against U.K properties | Loans Secured against UK property | 7.00% – 9.83% p.a. | Simple easy to use website | Lending balance secured against physical assets | Open Account |
Compare Peer to Peer Investing Platforms in the UK
Peer to peer lending has been a revolution to both lenders and borrowers because of the unique way that both individual borrowers and businesses are able to access the money they need.
As a a saver or investor, looking to earn interest on the money you have available, you will take on the role of the loan provider when it comes to peer to peer lending.
This means any capital you provide will be matched to a potential borrower who wants to borrow money. As with any loan, your money will be made available to the borrow for an agreed period known as the loan term, with regular, usually monthly repayments scheduled in so you’re earning interest each month.
Online peer to peer Investing platforms
Online peer to peer investing platforms, like those listed in the comparison table above, help to connect customers looking to earn interest, like yourself, known as “investors” or “lenders” with those looking to borrow money known as “borrowers”.
Each platform is run via a website or mobile phone app and allows you to check things like:
- the total amount of money you’ve invested
- the interest you’ve earned since your agreement began
- the interest rate agreed on your lending
- the terms of your agreement
- how the platform protects and guarantees the money you’ve invested into it so you can be sure you’ll get it back
Peer to peer platforms are designed to offer easy access to money for those who may be rejected by a bank and a way for lenders to earn better interest rates on savings when compared to cash savings accounts or cash ISAs.
Every lending platform listed in our comparison is Financial Conduct Authority (FCA) regulated and adheres to their strict guidelines on peer to peer.
Why do borrowers choose peer to peer lenders?
Peer to peer lending is generally considered as a high risk form of saving or investing. This is because, unlike cash savings, your money is passed directly to a borrower who, perhaps for a multitude of reasons, has elected to borrow from a peer to peer loan provider rather than a traditional bank.
The reasons for this type of borrowing can vary. However, the most common reasons for choosing a peer to peer lender over a high street or online bank include:
Problems borrowing from high street lenders
Some borrowers using peer to peer loans will choose to do so because they have problems getting approved to borrow money from traditional lenders, high street banks or online lenders.
There are many reasons why they may struggle but one of the most common is a poor or unfavourable credit history. Previous missed loan repayments, un-settled debts or high levels of debt can contribute to poor credit scores.
Other reasons might include; low income which is too low for bank loan terms, unstable or varying incomes caused by unstable or uncertain employment or a lack of assets to secure borrowing against.
Some peer to peer lending customers simply prefer online platforms because of the other advantages they offer, like faster access to money, easier management of their loan via online platforms or even cheaper borrowing rates.
Unstable income
If the person or company you are lending the money to has unsecured or unstable income or is borrowing money to help launch a business, you could potentially be at risk of not getting your expected return or in the worst cases losing your money if the lender defaults.
If a borrower makes an agreement to receive £25,000 to launch a business, but after 6 months the business hasn’t hit the projected returns you could lose some or all of your deposit if you’ve invested money which has subsequently been loaned to the borrower in this example.
If a borrower needs the money for a personal project but doesn’t have a stable income or their income varies, you could end up out of pocket if the borrower becomes unable to work during the agreed loan term.
Most reputable peer to peer lending platforms mitigate the risks of this by:
- not lending all of your money to a single borrower
- providing guarantees on any money you deposit with them
- reserve pots or funds bundled into the cost of each loan so the lending platforms can always afford to repay investors
What to look for in a peer to peer lending provider?
When choosing a peer to peer lending platform to make a return on your savings deposit it is important to consider more than just the one offering the highest interest rate.
You will also want to consider important elements like:
- how long you can do without the money – the lending term
- the protections in place to guarantee your investment – guarantees, provider emergency funds
- the interest rate offered by the platform – so you know how much money you can expect back
- security and reputation of the platform – so your details are safe from hacks or intrusion
- recovery process – for un-repaid balances or defaulted payments
You can also factor in things like, how easy the account is to access and use – do they offer a mobile app or online portal?
Why our comparison?
Our comparison offers the best way to choose a peer to peer savings and investment account because we offer:
- Platform analysis
- Unbiased transparency
- Detailed metrics
- Comprehensive platform analysis
- Aggregated user reviews
- Frequent updates
Platform Analysis
We’ve collated a list of the top peer-to-peer lending platforms to help you quickly and easily find the best provider to earn money on the deposit you make. We offer summaries of features, interest rates, loan types, user experience, security measures, and more so you are empowered to make an informed decision on which platform is best for you and most closely aligns with your savings goals.
Unbiased transparency
We’re independently owned and operated, we don’t answer to big investors, shareholders or corporate entities who dictate our editorial stance. We don’t make specific recommendations either, but we do intend to provide balance, integrity and clarity to every user who is making an important financial decision.
We won’t favour one peer to peer lender over another but do make every effort to ensure that the data we provide is accurate, up-to-date, and reliable.
Detailed metrics
Our comparison will help you understand the nuances of peer-to-peer lending so you have a clear understanding of what is right for you. Providing more than just surface level information is our goal to help you get clarity on your options side by side.
Aggregated user reviews
Like any business, real user experience of these organisations can be important for helping you understand what you can expect when saving and investing with these lenders. With aggregated user reviews you can begin to understand which are the most reliable, responsive and helpful companies when users have problems or questions.
Frequent updates
We frequently update the figures, details and companies listed in our peer to peer lending platform comparison to help ensure you get an up to date and accurate summary of the peer to peer saving market. We hope this gives you everything you need to make confident decisions at the right time in an environment which can change quickly.