24 May, 2016

Best peer-to-peer lending platforms in the UK

Peer-to-peer lending UK has started to see less new entrants (platforms) coming onto the alternative investment market, with only one business focused lender cropping up last year compared to six in 2014. Consolidation is almost certainly coming, so establishing where the best place to invest money will be is something you can do with our help. Let’s review some of the best peer-to-peer lenders on the market.


RateSetter was the first marketplace lending platform to introduce the concept of a ‘Provision Fund’.

RateSetter started operations in October 2010. Since then they have achieved:

  • £1,188,200,695 lent to-date. This places RateSetter amongst the ‘big three’ platforms that have lent over a billion pounds.
  • In 2015 it lent out over £500 million. In 2016, to-date it has lent out £217 million.
  • In 2015 the expected default rate was 2.21%. The actual default rate was 1.14%.
  • For 2016, 2.21% is the expected default rate. Till now the actual default percentage is 0.07%.
  • No investor has ever lost money.

RateSetter’s provision fund currently stands at £18,032,483. This means the fund offers 133% coverage for investor’ capital and interest. This coverage means that the fund is in excess of the capital lent out, meaning defaults will be covered should the fund not be over-subscribed and the Directors decide to payout.

RateSetter is the only peer-to-peer lending platform that lends to all three asset classes in peer-to-peer lending UK. Consumer loans account for 60% of loans, commercial (businesses) makes up 30% and property borrowers, 10%.For some commercial and property loans, borrower’ assets will be taken to secure the loan at a value greater than the loan. Similar principal to the provision fund, however in this instance the borrower’s assets will be liquidated to cover any losses to investor’s capital and interest repayments.

2015 was a good year for RateSetter as they bagged numerous awards in the Alternative Finance industry, including: Moneywise Customer Service Award, No. 1 P2P Platform by Which? Readers, and Most Innovative Investment Product by AltFi.


Landbay is a P2P platform allowing investors to fund residential buy-to-let mortgages.

In March 2015, Landbay was named in Everline Future 50 as one of the most disruptive startups in the UK. Landbay is also a member of the P2P Finance Association, a body formed to drive transparency in UK marketplace lending –platforms within this body publish their loan-books on a monthly basis.

Landbay has racked up the following statistics since 2014:

  • Landbay predicted 0.10% default rate for 2014, 2015 and 2016. Yet, to-date it has had no defaults or even late payments!
  • Landbay has managed 3.59% and 4.20% returns on investment for 2016 (to-date).
  • Landbay has 216 active mortgages amounting to £37.94 million. The value of property against these loans is £56.38 million.

Landbay has a provision fund that can be activated at Directors’ discretion, similar to other major UK platforms. They hold security over the borrower’s assets and have a typical Loan-to-Value (LTV) of 65% avg. They have also had their loan-book stress tested by the Bank of England ensuring they can maintain business as usual should an economic downturn occur.


Proplend was founded in 2013. It is a marketplace lender focused on secured commercial mortgage loans.  All loans are backed by a registered legal first charge on an income producing commercial policy.

Proplend was the first instance where private individuals and institutions were given the opportunity to directly invest in commercial real estate.

Interest is paid monthly, giving rise to a steady income stream.

Proplend Statistics are:

  • Minimum investment is £5,000.
  • £7,620,500 have been lent out to property worth  £11,856,800.
  • The average Loan to Value (LTV) is 62.24%.
  • There are three investment opportunities (each with a varying LTV). Returns per annum are currently:6.28%7.47%9.39%
  • There have been no defaults or late payments to date.

Wellesley & Co

Wellesley & Co was founded in November 2013. It provides asset-backed loans secured on residential property.  In 2014 Wellesley & Co won an award from AltFi for being the fastest growing platform of the year. In 2015, financial news site Bridging and Commercial awarded Wellesley & Co ‘P2P Lender of the Year’ award.

Wellesley & Co’s statistics are:

  • The amount lent to-date is: £311,099,883.
  • 116 loans are currently active, amounting to: £238,672,012.
  • The value of security against active loans is £365,918,400 with average LTV of 69%.
  • There have been no defaults to-date.

Assetz Capital

Assetz Capital matches you with asset-backed loans to property projects and SME businesses in the UK. The loan-to-value is usually under 80% of the asset value and the P2P platform operates a discretionary Provision Fund to cover defaults – utilised if asset sale does not recover the debt.


The creator of peer-to-peer lending as we know it matches investors with individuals seeking loans to consolidate debt, purchase a car or fund a wedding, amongst other things. Zopa has three products currently on offer: 3.5%, 4.5% and 6.5% per annum returns.


SME business lending platform, where you manually select loans, returning 6.4% – 6.8% per annum (depending on loan selection).


SME business lending platform, where you manually select loans, returning 8.7% per annum average (depending on loan selection).


Manual loan selection platform, facilitating investments in established UK businesses, returning 9% per annum average.


To be clear, these are just a few of the marketplace lenders in the U.K offering the best interest rates on the market. There are many more. At Orca Money we compare peer-to-peer lending platforms ensuring that you have the most up-to-date facts and information, so you can make independent investment decisions suitable to your investment profile.