Which Peer-to-Peer Investment providers do we work with?
We compare a wide range of Peer-to-Peer Investment providers in the UK, including:
Peer to peer investments can offer some of the greater saving returns out of all the products on the market. With returns of 6% to 8.5% per annum available, you can earn huge rewards compared to traditional savings accounts and cash ISAs.
For some peer to peer lending products, you will be able to lend to a pool of people in order to minimise your risk. Generally speaking, if you invest to people with good credit ratings, you will earn lower returns (around 3-4%) but invest with riskier, bad credit customers and you will maximise your returns around (6-8%).
Your money is usually tied up for the entire loan duration and you are not covered by the Financial Services Compensation Schemes (FSCS), although most peer to peer lenders will have their own form of compensation scheme just in case.
Yes, peer to peer investments are taxed, but this is not done automatically by the P2P company. As a result, you will be required to complete a self-assessment form every year that declares exactly how much money you make yearly from any peer to peer investments you have. This is different from cash ISAs and investment ISAs which come with a £20,000 tax-free allowance per year.
There is risk involved if your borrower defaults, and you could end up losing all or part of your investment. The peer to peer lender will have customer service agents in place to help you collect your funds.
The majority of peer to peer companies do have in place their own financial compensation scheme to encourage peer to peer investment.
We aim to be as approachable as possible for our customers, and will always do our very best to assist you with any and all queries you may have concerning any part of our application process and more.
Our online application only takes minutes to complete, with decisions being made very quickly after this. A member of staff will contact you to help you proceed with the final steps.
Each and every one of the providers we work with are fully checked to ensure their reputability, their trustworthiness, and furthermore their competency in helping to provide you with the financial services you require.
The Proper Finance comparison site is free to use and there are no upfront fees for filling in our online application.
You can open an account online once you have chosen the peer-to-peer provider you would like to invest with.
No, any money that is invested in a peer to peer account is not automatically protected by this scheme.
No, and if they do have their own schemes, the amount you are compensated for will have a certain limit. That means that you could lose money if there happens to be a large number of borrowers who miss repayments.
A P2P business will match you with potential borrowers and then you bid amongst other investors to loan money to them. If the borrower chooses your bid, they will then borrow money from you over a set period of time, and then pay you back monthly.
No, certain peer to peer companies will provide a variable return. That means you have the chance to decide how much you will get.
Yes, it is sometimes possible for you to sell your peer-to-peer investment to another investor in order to get your money back. This is useful in case you want to withdraw early.
Yes, if you decide to invest in an innovative finance ISA, you will not need to pay tax.
Yes, but this is only possible at the end of the term. You can have easy access to your peer to peer investment.
Generally speaking, you can help to reduce risk by investing with a large number of borrowers, rather than just one individual or business.
We work with trusted brokers to give you access to a panel of leading lenders well placed to meet your needs at the lowest rates.
