Loanpad is a newly launched peer to peer company offering property development loans. What makes Loanpad different is they source their loans through an experienced third-party lender. Loanpad holds the senior position on all loans, offers low loan-to-value ratios and pays daily interest which is great for people looking for income.
I was originally contacted by a Loanpad representative in early 2018 but had little knowledge of them. After further research, in August 2018 and January 2019, I visited with Loanpad’s CEO Louis Schwartz, an ex London city lawyer specialising in property and development transactions.
So far I’m impressed by Loanpad’s unique peer to peer lending product and I decided to invest.
Thumbs Up For Loanpad
- Two products, instant access and 60 day access*. £10 min. ISA available
- Interest paid into your account daily
- Your funds are automatically diversified across all loans
- No fee’s except 0.5% for early access on 60 day access.
- Louis’s legal background has given him extensive experience in property development lending deals
- Loans are sourced from a conservative lender with over 40 years experience
- Louis has been working with the lender for over 12 years
- Loanpad takes a senior tranche position over lender on every loan
- Lender has between 25% – 50% of own money in each loan
- Loan-to-values are low
- Lower risk p2p product
- Loanpad is well funded and is expected to be profitable in a shorter time period
* Based on demand and supply under normal market conditions
Thumbs Down For Loanpad
- New peer to peer lending company so no track record
- Only one initial lending source until platform grows
- Lower annual return rates
- Cash deployed into investments once per day
- All eggs in the property development basket
- Currently no auto-reinvestment (to be released Q1 2019)
It’s early days but I believe Loanpad is a good offering if you want a lower risk peer to peer lending product that pays you interest daily. I’ll be writing a full preliminary review soon.
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** This Loanpad review is for information purposes only. This information is not financial advice and has been prepared without taking your objectives, financial situation or needs into account. You should consider its appropriateness for your circumstances. All investing carries risks. Opinions expressed in this review are opinions based on my own personal experiences. The FSCS does not cover peer to peer lending and your capital is at risk. Please don’t invest more than you can afford to lose. **