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.
If you find this post useful – please let us know, and we may make it a regular feature. If you have your own suggestions you would like to share – we would love to hear them.
Why we like it
Interest rate: 13.4%
Term: 12 months
1st lien secured loan
The combination of very low LTV, one year term, and a rate above 10% makes this loan very interesting. We are not aware of any other secured P2P loan anywhere right now that offers such high returns for a low LTV and good collateral quality. The property is located in a wealthy part of Latvia, and only 100m from the Baltic sea, with over 2,000m2 of land. The property has been valued by Ober-Haus, which is a well known and respected firm in this part of Europe.
Interest rate: 12%
Term: 12 months
2nd lien secured loan
This is an attractive property that the owners have currently placed on the market to sell. It is a second lien loan but the first lien is small (equivalent to 26% LTV). The market for higher value properties right now in England is a little soft. However the LTV is low enough, and the interest rate high enough to justify the risk in our view. Bridgecrowd has been operating for many years now and has never had a single loan default. This is why it is one of our favourite UK secured lenders.
'Bentley Hall' loan
Interest rate: 10.5%
up to 20% IRR after cashback
Term: 36 months
This loan won’t be for everyone. The borrower is an Irish company looking to purchase construction equipment for its hire business. We think it is interesting for 3 reasons. Any company that could have survived the massive construction downturn in Ireland during the last crisis gains some credibility with us. The business is using the loan to support growth, and is purchasing equipment which creates potential recovery value. Finally, 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 IRR of almost 20%. We think that is worth considering. To automatically qualify for the 10% cashback just use the link provided here.
Interest rate: 15%
Term: 51 months
1st lien mortgage
This is a secondary market loan purchase opportunity on Mintos. We are sure this will be purchased extremely quickly, but we wanted to highlight it anyway. Investors can purchase this loan at a 1% premium, which slightly reduces the return from 15% to 14.8%. Investors can see that the borrower has made 7 consecutive monthly payments on time. We really like this combination of perfect payment history, low LTV and high yield. Similar loans are available on the Mintos secondary market.
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.