Loans we love – our pick of the best P2P loans for September 2017

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

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Interest rate: 12%
LTV: 48%
Term: 12 months
1st lien secured loan
England

The loans offered on the Lendy platform can vary in quality significantly. However we think this loan is a good example of why the site is very popular with investors. The loan is to a successful business who is looking to acquire a listed building, which will be used for weddings and has potential for future residential development. We like the fact that there were multiple offers made to acquire the property at similar valuations and the track record of the borrowing company who has successfully repaid other loans on Lendy. Finally, the LTV of less than 50%, combined with an interest rate of 12% gives this an attractive return profile relative to the risk. 

Lendy logo

'PBL 192' loan

Interest rate: 10.7%
LTV: 36%
Term: 11 months
1st lien secured loan
England

This loan is a good example of why we rate Bridgecrowd so highly, and why their loans sell out so quickly. The loan is 1st lien secured against a 3 bedroom house. The current LTV is only 36%. The loan proceeds are being used to undertake renovation works, which will increase the value of the collateral, and reduce the LTV. The borrower will pay interest to lenders of 0.85% per month, which is over 10% annualised. We think the low risk, combined with a return over 10% is extremely attractive.

Bridgecrowd logo

'Boundary Walk' loan

Interest rate: 12%
LTV: 70%
Term: 6 months
1st lien secured loan
England

This loan is from the Collateral UK platform. The borrower is looking to finance 2 properties and some adjoining land as part of a development. While the LTV of the loan is fairly high at 70%, the value of the collateral should increase once planning permission is granted. The interest to be paid during the 6 month duration of the loan will also be held and paid by Collateral UK, which means that there is no risk of missed interest payments during the period of the loan. The profitability of the proposed development also appears to be strong. 

CollateralUK logo

'BL00055' loan

Interest rate: 10.5% 
up to 20% IRR after cashback
LTV: N/a
Term: 36 months
Business loan
Ireland

This loan is to Irish company who provides services to many of the well known whisky and beer brewing companies. It is undergoing significant growth and requires capital to fund new projects. The interest rate available is 10.5%. However Flender are currently offering a 10% cashback for investments of €1,000 or more. We estimate that a €1,000 investment in this loan, after receiving the cashback, would generate an annualised return for investors of almost 20%. We think that is worth considering. To automatically qualify for the 10% cashback just use the link provided here

Flender-Logo-RGB-cropped copy

'MW Control' loan

Interest rate: 13% 
LTV: 52%
Term: 24 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 (an Audi A5), with an LTV of 52%. The borrower has been making regular payments since 2014 and the loan is in good standing. This loan also 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 lender, a reasonable LTV, strong borrower payment history, and the short maturity.

Mintos logo

Loan 1468534-01

Interest rate: 10.0% 
LTV: 48%
Term: 12 months
1st lien mortgage
Estonia

This loan offered by EstateGuru ticks all the boxes we look for when we choose loans. The property is recently constructed and in good condition. The location is good, and the LTV is only 48%. The borrower is releasing equity to invest in real estate projects, which we think is a positive when assessing risk. While the interest rate is slightly lower than others on EstateGuru, we think the risk/reward profile makes it one of the best loans they offer currently. 

Estateguru logo

'Aianduse' 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.

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