News

18 Reasons To Invest In Peer To Peer Loans

Published on September 16, 2016

6 Reasons To Invest In Peer to Peer (P2P) Loans

  1. In a long term low interest rate environment, P2P loans offer investors attractive rates of fixed rate monthly income
  2. Circumvents traditional banking system, allowing investors to lend directly to borrowers
  3. Investors able to build a diversified income producing loan portfolio
  4. First £1,000 of P2P interest earned is tax free*
  5. Enjoy further tax free returns by investing through a personal pension (SIPP or SSAS) or the new Innovative Finance ISA (IFISA)
  6. P2P platforms are regulated by the Financial Conduct Authority (FCA).

6 Reasons To Invest in Secured Peer to Peer (P2P) loans

  1. Secured P2P loans are usually backed by a hard asset such as property, helps to protect from capital loss
  2. Should the borrower default, the property can be sold to repay the loan
  3. The maximum loan amount will be lower than the value of the security (the property)
  4. The borrowers equity in the property is a first loss buffer
  5. Properties, residential and commercial, earn rental income from tenants which in turn pays the lenders interest payments
  6. Secured P2P lending offers investors more attractive risk adjusted returns

And Finally – 6 Reasons to Invest in Secure Peer to Peer (P2P) Loans through Proplend

  1. All loans are secured by an income producing commercial property leased to long term tenants
  2. Investors can choose between three different Loan to Value (LTV) based risk levels
  3. Offers investors fixed rate returns from 5-12% per annum, with interest paid monthly
  4. Fully transparent, all loans come with detailed information pack, valuation and legal report helping investors make an informed decision
  5. Low risk, 4thWay rated Proplend loans 5/5 in their P2P platform PLUS Ratings
  6. No borrower late payments, loan defaults or investor losses

P2P platforms are not covered by the Financial Services Compensation Scheme (FSCS). Your capital is at risk.

(*base rate tax payers or £500 for higher rate tax payers)