Which Peer to Peer lenders are the best?
“Best” means different things to different people, so to be clear, this is about which lenders I believe my capital will be safest with, and still produce reasonable returns even through a severe downturn in the economy as just occurred. All of these lenders came through the COVID19 pandemic. Not without problems, but they made it, and I believe they are all stronger for it. Let’s face it, if they’re are still around after the once-in-a-lifetime (I hope) pandemic with their heads still above water, they should be pretty strong.
Below is the list of lenders I am increasing capital with as we move forward. I consider these to be my Top Peer to Peer lenders.
Disclaimer:
The information below is comprised of my opinions on Peer to Peer lenders. It also contains data on how I am investing capital for informational purposes only. It should not in any way be construed as financial advice or suggestion on where you should invest. Please do your own research before making investment decisions and do not base them solely on what you read on this website. Please read my full disclaimer of more information.
Kuflink
Why is Kuflink on this list?
Kuflink have short to medium term (6 to 18 month) development loans with generally very reasonable LTV’s. Although the secondary (loan resale) market became very active when the COVID-19 panic first hit, they did not have any kind of liquidity problems as some other lenders did because the company (Kuflink) does not offer liquid “instant access” type accounts . Therefore lenders must wait to get their capital if they can’t sell loans on the secondary market. This turned out to be a benefit for Kuflink as they are not subject to a bank run as other lenders are. Auto-invest portfolios came to term normally and capital was returned to investors (where requested).
Kuflink is still bringing new loans to the platform, and they are still being filled as normal. This shows that investors still trust Kuflink enough to invest with them.
My Kuflink Strategy.
I started to increase my investment in Kuflink and continue to do so moving forward. I invest £500 in deals with LTVs over 50%, and £1000 in loans with LTVs under 50%. I’ll keep adding capital as needed to meet this strategy until my total investment gets to a level I’m not comfortable exceeding.
Use this link for Kuflink Cashback. Click to lean more >>
Loanpad
Why is Loanpad on this list?
Loanpad offer property secured loans, all with very low LTV’s (all below 50%, and many between 5% and 15%). These kinds of LTV’s mean even if UK property values take a huge nosedive because of the recession, even in the event of a default, lenders would probably get their capital back. In the course of the COVID-19 panic, Loanpad, although a smaller company, survived and fulfilled capital withdrawal requests even from their “Classic” instant access account without having to declare a “Liquidity Event” and suspend capital withdrawals. This is a huge plus for Loanpad and tells me there are a stable company that are here to stay.
My Loanpad Strategy.
I’ve started to increase my investment with Loanpad (it all goes into the Premium 60 Day Access Account). Although it only pays 4% currently, that sounds pretty good compared to other options which are as safe as Loanpad
Use this link for Loanpad Cashback. Click to lean more >>
Assetz Exchange
Why is Assetz Exchange on this list?
Assetz Exchange offer an interesting cross between Peer to Peer lending and buy-to-let investing where investors can benefit from regular rental income and also price increases in the property market over time.
The 5% to 6% annual return along with the opportunity to capitalize on UK property price growth over time makes the Assetz Exchange platform and interesting proposition for investors.
Use this link to signup with Assetz Exchange >>
easyMoney
Why is easyMoney on this list?
Since the platform was launched in 2018, easyMoney has had an impeccable track record of zero defaults, even though the pandemic. They are very particular in the loans they choose to finance, which are typically short to medium term property bridging & development loans from 3 to 24 months in term.
easyMoney is very similar to CrowdProperty & Kuflink as far as their business is concerned, except the only investment option is auto-invest, so that also makes them more similar to Loanpad overall.
I consider easyMoney to offer a very reasonable risk/reward ratio so they make the Top Lender List for me.
Disclaimers:
* My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site.
** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations.
Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Portfolio Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.
Please read my full website Disclaimer before making investment decisions.
