The growth of the peer-to-peer lending industry
The peer-to-peer lending industry has continued to perform exceedingly well in 2019. The UK Peer-to-Peer Finance Association (P2PFA) has recently published data for cumulative lending in the sector, revealing that the industry is now worth a whopping £9.5 billion. This is a huge growth from 2018, whereby the P2PFA stated that platforms had provided peer to peer loans worth nearly £3 billion over the course of the year.
Who are the biggest peer-to-peer lenders?
In terms of the biggest peer to peer platforms in the UK, these are currently considered to be Zopa, Loans Warehouse, RateSetter, Lending Works, LendingCrowd and Funding Circle.
How does peer-to-peer lending work?
Lets clarify exactly what we mean by peer-to-peer lending: this is where lenders essentially act as middlemen between those who are searching for a loan, and companies or individuals looking to provide funding in order to receive a return on the investment. They can sometimes be known also as ‘money cupids’ or ‘matchmakers’ due to the usually low interest rates. For example: this can be as little as 6.5% for a good credit loan, and 9.9% Representative for those with a poor credit history.
Typically, you will find that as a borrower, you can receive better rates than other kinds of loans available on the market. Furthermore, savers can usually get better rates too, compared to if they used a savings account through their bank.
How much can I borrow with a peer-to-peer loan?
The exact amount you can borrow will be dependent on your credit scores and it will also dictate your interest rate. Those with a good credit score will pay lower amounts of interest and can borrow more, whilst the opposite goes for those with a bad credit history.
Why choose a peer-to-peer loan?
Peer-to-peer (P2P) loans enable you to effectively borrow at extremely competitive rates, with a flexible time in which to pay it back. You are able to borrow anything between £1,000 to £35,000 through Proper Finance, and we only work with most reputable peer-to-peer lenders in the sector, helping you to access the best type of finance to suit your individual needs.
