Zopa reduce rates again

January 25th, 2017

Following several reductions in rates in 2016, Zopa have announced that they are dropping lending rates again by another 0.2%.

Here is the full email sent to lenders:

Since I last wrote to you about our lending rates, the personal loans market has become even more competitive. Nine of our competitors have dropped their rates by an average of 0.35% since the beginning of December, and we anticipate that these market conditions will remain in the coming months.

As our rates reflect the wider loans market, we’ve decided to adjust the target returns for each of our products. From 31 January the headline rates will be:

  • Access: 2.9%
  • Classic: 3.7%
  • Plus: 6.1%

As the market conditions continue to evolve, these rates may change again. We carefully monitor and adjust our rates to deliver the reliable, risk-managed returns you’ve come to expect from Zopa. For us, this is the most important thing.

Remember, when you invest your money, your capital is at risk.

This is why we won’t compromise our prudent lending policies, but we are always looking at new ways of getting your money to more UK borrowers. Just recently we introduced more flexibility in loan terms for borrowers which will increase demand for Zopa loans and have a positive effect on your time to lend.

There’s more detailed information on how we calculate rates on our blog, or if you have any other questions please get in touch.

OFF3R release Q4 2016 OFF3R Index

January 17th, 2017

OFF3R, the marketplace for alternative investments, have just published their Q4 Index Report.  The report analyses month-on-month performances of peer-to-peer (P2P) lending & Equity crowdfunding platforms on OFF3R the UK over the last year.  Due to its success, OFF3R will now release an updated report monitoring the performance of the industry each month.

FCA authorisations

January 12th, 2017

As we enter 2017 P2P money can report that there are now 14 platforms - that we are aware of - that are now operating with full FCA authorisation.  These are as follows, listed by launch date:

  1. Folk2Folk
  2. Lending Works
  3. Landbay
  4. Crowd2Fund
  5. LendingCrowd
  6. Capital Stackers
  7. Go2 Business Loans
  8. CrowdStacker
  9. InvestDen
  10. Octopus Choice
  11. Peer Funding
  12. The Money Platform
  13. Landlord Invest
  14. Simple Backing

There are also number of platforms operating as an "appointed representative" of another company with full FCA authorisation, or operating with full FCA authorsiation that does not include "operating an electronic system in relation to lending" permissions.  The major platforms within the sector are still awaiting full authorisation, and this prevents them from registering as an ISA provider.

Christine Farnish of the P2P Finance Association stated at LendIt Europe in October that it was her belief that these would be in place by March 2017, but to date only two of the eight platforms that are members have received full authorisation.

Folk2Folk obtain full FCA authorisation

December 7th, 2016

Yesterday Folk2Folk became the lastest peer-to-peer lending platform to obtain full FCA authorisation.  The company will also be applying to the HMRC to offer an Innovative Finance ISA.

Here is their full press release:

Folk2Folk, one of the UK’s fastest growing peer-to-peer business lenders has today been awarded its full FCA authorisation for peer-to-peer lending.  Folk2Folk having lent over £125m since launching in 2013 is now delighted to be the UK’s largest fully authorised P2P lending platform, matching individual business borrowers to individual lenders secured on property.

The South-West based business was given its full FCA authorisation ahead of a number of industry competitors including the big three.

Gaining full FCA authorisation is a major milestone for Folk2Folk as a business. By being fully FCA authorised, Folk2Folk can now look to offer the Innovative Finance ISA (IFISA) to customers in due course, subject to HMRC approval.

Jane Dumeresque, Folk2Folk CEO said, “We are delighted that the FCA has granted Folk2Folk its full authorisation for peer-to-peer lending. We see this as a significant milestone for Folk2Folk as a P2P lending business. This decision is significant as it makes us eligible to offer our IFISA before the end of this tax year. I think it speaks volumes about Folk2Folk as a business having gained its full FCA authorisation ahead of many of the industry’s leading and larger platforms. We believe this will act as a positive sign to investors as well as business professionals that are looking to partner with a trusted and fully authorised platform like Folk2Folk.”

Jane Dumeresque added, “Our mission is to help local businesses get access to the finance they need by matching them to local investors in a quick, simple and easy process. Folk2Folk remains a business of the people, for the people by the people and is proud to be a national lender that operates locally. By establishing a local presence in strategic regions across the UK through our unique branch network, we can encourage the local community to invest through Folk2Folk to help local business owners prosper and thrive. We believe it’s always more interesting and reassuring when an investor can see what exciting projects their money is supporting.”

Folk2Folk works closely with business professionals such as lawyers, accountants and bankers across the UK and by becoming fully authorised by the FCA it is expected that this accreditation will encourage more professional services to work in partnership with Folk2Folk to assist their clients with alternative forms of finance and investment options. 

Folk2Folk on a national level specialises in local secured lending for businesses. Folk2Folk enables local business to achieve their business goals and grow by matching local and rural businesses looking for finance with local investors looking for a great return.  Interest costs to the borrower (before fees) and investment returns to the investor range from 5.5% to 6.5% based on the LTV of the property which acts as a security against the loan and other criteria.

Money&Co offer portfolio service

December 6th, 2016

Money&Co have contacted lenders to offer a new portfolio service.  The portfolio service will manage a lender's loan portfolio for a 1% fee, but if lenders sign-up by the end of the year they will receive a cheque for £1000.  To take advantage of the service lenders require a minimum £100,000 investment.

Given that there have only been 23 loans on Money&Co, including one currently open loan, and contrasting that to 25,511 loans arranged on Funding Circle, the value of the service could be uncertain.

Here is the email sent to lenders:

The Money&Co. Portfolio Service

We are writing to tell you about a special Christmas offer. If you sign up for a Money&Co. Portfolio Service account before 31st December, we will send you a cheque for £1,000.

The Money&Co. Portfolio Service has a minimum investment level of £100,000. If you sign up, a fund manager will manage your loan portfolio for you at no extra cost. The normal lender fee is 1% per annum. If you have no specific requirements, we will ensure that there is a spread of loans in your portfolio across all the risk ratings. You can choose to have interest paid out monthly or we can reinvest money coming back from your loan portfolio into new loans.

If you would like to know more about the service, please email us. Remember, if you sign up before Christmas, we will send you a cheque for £1,000.