Whilst we would be inclined to reverse the top two placings, we respect and appreciate the view of 4thWay writer Matthew Howard, that Proplend is one of the top three UK property P2P lending sites.
As Matthew eludes to during his glowing platform recommendation, investor security and minimising lender risk are big priorities of Proplend – but we don’t think this necessarily needs to come at the expense of return on investment.
Proplend offers risk-adjusted returns on its peer to peer loans, each backed by UK commercial property, using a loan to value (LTV) Tranche-based model. Simply put, the higher the LTV (the higher the risk of a loss of investment capital), the higher the return investors can expect.
But even Proplend’s Tranche A loan investments, LTV capped at 50% and recently awarded the maximum 5 plus rating for being one of the safest P2P investments, offer attractive inflation-beating returns. Tranche A pays a more than respectable average annual interest rate (AIR) of 6.34%*, whilst offering risk-averse lenders the peace of mind of being first in the queue to be repaid.
For those comfortable with taking more risk, Tranche B loans with LTVs from 51-65% offers an average return of 7.94 pa%* and Tranche C loans with LTVs no greater than 75%, averages 9.39% pa*. All adding up to the extraordinarily low-risk property loans and very attractive interest rates referred to in the 4thWay article (read the article in full).
What’s more – just as Tranche A has repayment priority over Tranches B and C, all Proplend loans as debt investments can be considered a safer way to invest in UK property than equity investments – a point that is often overlooked. The 1st legal charge we hold as loan security means our investors are repaid before any balance goes to the equity investor (the borrower). Equity investors often accept Proplend-level returns when their’s is a riskier position.
Proplend is proud to be considered the 2nd best property lending site in a growing peer to peer market but we’ll certainly working hard to convince Mr Howard and all those UK alternative investors out there to make us their first choice.
We’re also proud to help creditworthy UK corporate borrowers raise funds against their income producing UK commercial property – be it offices, industrial, retail, leisure or residential blocks. Proplend specialises in meeting the commercial mortgage requirements of the under-banked sub £5m mortgage market.
*Interest rates shown are annualised percentage return after fees, but before bad debt and taxes for active loans on the platform for the 12 month period to 31 December 2016, with Interest not re-lent. Calculated taking an average of the Annual Interest Rate (AIR) across all loans. The average AIR is not weighted based on the value of the monies lent and assumes that the average AIR is achievable based on lending the same amount to all loans listed on the platform. Past performance is not a reliable indicator of future performance.
