Today the Bank of England moved to cut rates to just 0.25%, the first move since 2009. The cut was in response to a dramatic drop in economic activity, particularly in the services sector following Britain’s vote to leave the EU in June.
The drop in base rate, from an already historical low, is bad news for savers who have been struggling to find attractive returns for their cash across any asset class during the last seven years. The prospect of further drops and even negative rates looms if this action does not have the desired effect.
Peer-to-Peer lending offers attractive rates of risk adjusted, fixed income returns, but it should not be confused with saving! You may have to commit your money for longer periods of time, your capital is at risk and P2P is not covered by the FSCS. However, you are getting paid a premium for lending risk and illiquidity, and as part of a balanced investment portfolio it could provide the yield you are looking for.
At Proplend we offer investors the opportunity to invest directly into loans secured against income producing, UK commercial property. You can invest on a deal by deal basis meaning you choose the risk and return requirement that best suits you. Read our article on Assessing Investment Risk for more information on this subject.
The Proplend Loan Exchange currently offers Loan Investment opportunities returning 5.75% pa* to 10.3% pa* with terms from 12 months and a minimum investment of £1,000.
REGISTER now for more information and to invest.
Capital at risk
*Before fees, bad debts and taxes