Our pick of the best P2P loans
This post is part of a regular series where we highlight what we think are some of the best P2P loans 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: 10%
LTV: 47%
Term: 44 months
1st lien mortgage
Etropole, Bulgaria
Buyback guarantee
This mortgage loan is available on Viventor. We think this loan in particular is interesting because it offers both a very low LTV of 47%, and a ‘buyback guarantee’ from the lender Lenno. We continue to think that the Lenno loans are the top picks on Viventor right now. Investors get the benefit of the loan collateral and also a buyback guarantee, which is rare. Lenno received one of the highest scores in our recent Viventor lender ratings. One final positive characteristic of this loan is the payment history of the borrower. The loan was originated 16 months ago and in that time they have made all their monthly payments and paid down the loan principal by more than 20%.
Loan 261224
Interest rate: 9.5%
Term: 3 months
Personal LOAN
BUYBACK GUARANTEE
Indonesia
Rates have been falling recently on the Mintos platform and it is getting a little difficult to find a balance of quality and return. One lender that we are currently fans of is Kredit Pintar. It currently has a score of 66 in our Mintos lender ratings. The lender is very profitable, with a strong capital ratio. We also like the geographic diversification that comes from investing in loans from Indonesia. This loan has a 3 month maturity, a rate of 9.5%, and a buyback guarantee. It’s not the absolute best loan we’ve ever found on Mintos, but given the current rates and loans available, we think it is one of the better options.
Loan 23474536-01
Interest rate: 11%
LGDV: 51%
Term: 9 Months
First Lien mortgage
LATVIA
With secured loans like this we really focus on the quality of the project, location, and the current state of the property / progress of the development. This ticks all those boxes for us. This is a renovation project, with improvements being made to the exterior and interior. The finished product will be 13 small apartments in a central area of Riga, Latvia, which we would expect to be easy to sell. The dynamics in the real estate market in this part of Europe are very good right now. Bulkestate is one of the smaller platforms, but we continue to be impressed with the quality of opportunities that it provides to investors.
'Zellu' loan
Interest rate: 10.5%
LTV: 62.5%
Term: 12 Months
First Lien mortgage
ESTONIA
This is a great example of our favourite type of loan that can be found on Estateguru. A builder has completed a project and is looking to borrow funds secured against 3 new apartments. The properties have been completed to a high standard. Properties such as this are usually fairly easy to value, and also to sell, which takes away much of the risk associated with secured lending. At a 62.5% LTV, we think a 10.5% interest rate is more than adequate for the risk.
Loan 8109
Interest rate: 8.5%
LTV: 70% / LGDV 62%
Term: 11-13 Months
First Lien mortgage
London, England
CapitalRise is a P2P site that focuses on funding high quality refurbishments and developments in premium locations, such as central London, and Oxford. We are impressed by the quality of information provided, including very clear capital structures and 10 minute videos that outline the full details of each development. This loan is to fund the refurbishment and sale of 3 apartments in Shepherd’s Bush in London. This is a location that is increasingly popular and we would expect it to be relatively easy to sell apartments finished to a very high standard. A rate of 8.5% seems fair given the fairly limited construction risks, and modest LGDV. Loans have been selling out quickly on CapitalRise. If you are looking to invest GBP, it is worth opening an account and monitoring the new loans that appear on the site.
'Devenport' Loan
Interest rate: 7.8%
LTV: 33%
Term: 12 months
1st lien mortgage
London, England
This is the type of super-boring (but attractive) bridge loans that Bridgecrowd excels at. The property is owned by a business owner who needs to release some equity from his house to use in his business. While the rate is a little lower than normal for a Bridgecrowd loan, the risk is also much lower. It is a first lien loan, with an LTV of only 33%, secured on a house. We think that the rate is excellent given the very low risk profile of the loan, and this will be attractive to almost all P2P investors. The one downside of Bridgecrowd is that the minimum investment in each loan is £5,000, so it suits investors with larger sums available to invest.
'Ashleigh House' loan
And here are two we DON'T love....
Interest rate: 6.9%
LTV: 70%
Term: 12 Months
1st lien mortgage
Croydon, England
We are generally fans of Kuflink, but sometimes there are loans that appear high risk to us. This loan is secured on an empty retail shop in a tertiary (low quality) location in Croydon, England. The property is in very poor condition. In situations like this the value of the property is very uncertain. Retail locations like this are slowly dying, and some properties are almost worthless. This property is zoned for use as a restaurant, and we don’t see this as being an obvious building for anyone to launch a new restaurant. At a relatively high LTV of 70%, we don’t think the 6.9% interest rate is close to being sufficient for the risk.
'The Broadway' loan
Interest rate: 16%
Commercial loan
Security: ?
Belarus
Another incredible loan offer from Kuetzal. Would you like to fund two gentlemen located in Belarus to help them develop their ‘blockchain total poker’ app and launch in Asia? They only need €400,000….. They claim to have made lots of money in the past on other endeavours but they would prefer to borrow money at 16% rather than use their own funds to fund their business. As to what the company revenues, balance sheet, profit, and capital structure looks like – well Kuetzal doesn’t think that’s important enough to provide. A quick check of the google play store seems to have split opinions – 1 stars from real users, and 5 stars from clearly fake reviewers. We give this loan 0 stars.
'Total Poker' loan
If you are interested in any of the loans above, please make sure to read all the information provided by each investment site and make sure that they are suitable for you. While we aim to highlight interesting opportunities, you must perform your own assessment of the risks and make your own independent decision on whether these, or similar loans offered on each site are suitable for your investment objectives.