Our pick of the best P2P loans currently available
We list below what we think are some of the best P2P loans currently available in the UK and Europe. These loans may sell out very quickly. Even if they do, it is likely that similar opportunities are available on each platform.
Our goal is to help highlight the types of opportunities that are available on various platforms, and which types of loans offer the best balance of risk and reward.
Description
Why we like it
Link
Interest rate: 6.5%
LTV: 52%
Effective LTV: 42%
Term: 11 months
1st lien secured loan
England
Kuflink offers loans that have slightly lower interest rates than available elsewhere, however this is because they are structured in a way that reduces the risk to investors. This loan has an LTV of 52%, but the effective LTV is only 42% once Kuflink’s subordinated co-investment is taken into account. For investors looking for solid but not spectacular returns, and to minimise their investment risk, loans such as this one are an interesting option. The borrower is looking to renovate the property, which will add value to the property and reduce the risks even further.
'Lascelles' loan
Interest rate: 9.6%
LTV: 53%
Term: 12 months
2nd lien secured loan
England
Bridgecrowd loans are extremely popular at the moment. Their loans are usually fully subscribed within an hour of being listed. That’s because they offer excellent returns relative to risk. An example is this loan, which is a terrace located in a fashionable part of London. If you are interested in investing in similar loans, we recommend opening an account with Bridgecrowd and then make sure to react quickly when they list their new loans.
'Mulloy & Cox' loan
Interest rate: 13.1%
LTV: 64%
Term: 15 months
Senior and Mezz secured Bond
England
Property Crowd provides development finance to fund mainly residential developments in the UK. Development finance has a higher than average risk profile, but in this case, Property Crowd are offering an appropriate interest rate (13.1%). The development is a site in Luton, England that has planning permission and will shortly start construction. The location is close to the city centre and represents an attractive development opportunity for developers. It can be difficult to value a development site, but in this case the valuation report appears to be well documented and has realistic assumptions. We think the low LTV (64%), the quality of the location, and an interest rate of 13.1% makes it worth considering.
'Luton City' bond
Interest rate: 13.8%
LTV: 35%
Term: 9 months
1st lien secured
Bulgaria
Bulkestate have been growing quickly and this is the largest loan they have brought to the platform so far. The loan is secured against 18 recently built apartments in a Black Sea resort in Bulgaria. The properties are fully furnished, and the resort has received good reviews. Bulkestate has provided detailed valuation reports for each apartment. We think that an interest rate of almost 14%, for loans with an LTV of only 35%, represents an attractive return and risk profile.
'Midia Grand' loan
Interest rate: 13.5%
LTV: 58%
Term: 60 months
car loan
Romania
This is a primary market loan purchase opportunity on Mintos. The loan is from Mogo, which is currently ranked as our top lender on the Mintos platform. The loan is secured against a car (a Porsche Cayenne), with an LTV of 58%. This loan comes with a buyback guarantee, which means that Mogo will repurchase the loan if the investor falls behind in payments. We like the combination of the buyback guarantee, a strong and profitable lender, and a reasonable LTV.
Loan 1632462-01
Interest rate: 11.0%
LTV: 49%
Term: 12 months
1st lien mortgage
Latvia
This loan offered by EstateGuru is our favourite type of P2P loan. The loan is to fund the purchase and renovation of an attractive property in a good area. The borrower has a successful track record on similar projects in the area. The LTV is only 49%. We think the combination of the 11% interest, the low LTV, and the positive characteristics of the borrower and collateral make this an interesting opportunity.
'Ozolu' loan
If you are interested in any of the loans above, please make sure to read all the information provided by each platform and make sure that they are suitable for you. While we aim to highlight interesting opportunities, you must perform your own assessment and decide whether these, or similar loans offered by the platforms are suitable for your investment objectives.