What platforms can beat a 4% inflation rate?
Earlier this week, Andrew Bailey, Governor of the Bank of England, warned that inflation was heading towards 4%.
Meanwhile, new research from Hargreaves Lansdown found that the average easy access rate hit a record low of 0.09% in August and the new fixed account average remained at an all-time low of 0. 29%.
Last month, the British held more than £ 9 billion in low yield savings accounts. And as inflation rises, many of these savers will be looking for ways to make their money more profitable.
There are many peer-to-peer lending platforms targeting rates of 4% and above, meaning investors can protect their money against the eroding cost of living. By investing through an Innovative Finance ISA (IFISA), these investors can also earn tax-free returns on up to £ 20,000 of investments each year.
So what platforms are currently targeting rates of four percent or more?
Read more: Every P2P personal loan platform open now
Ablrate invests in asset-backed loans and bridge loans, with return targets ranging from 9% to 15% per annum.
Abundance investors can choose from a range of bonds investing in green and socially responsible projects across the UK. Target returns vary from bond to bond, but typically range from 3% to 10%.
Business lender ArchOver has delivered an average return of 8.45% to investors over the past 12 months. In 2020 as in 2019, the platform returned an average of 9% to its lenders.
Assetz offers three different accounts to its investors, including a Quick Access Account, a 30 Day Access Account, and a 90 Day Access Account. The 90-day account currently offers 4.1 percent per year.
Mortgage lender Blend is aiming for returns of between 8% and 12% per annum, secured by property.
The main mortgage lender in central London is currently announcing target rates of between 7 and 12% per annum.
Business lender Crowd2Fund is announcing potential rates of between 6% and 15% before fees and bad debts, by investing in UK companies.
Crowd for angels
The Crowd for Angels crowdfunding platform offers individual loans, with variable rates of return. The platform is currently announcing target returns of seven percent.
Property of the crowd
Real estate lender CrowdProperty has recorded no losses to date and is targeting investor returns of up to eight percent per year, backed by a first charge guarantee against the property.
Crowdstacker loans are individually priced, with target returns of up to 12%, secured by assets.
Knock down the crowd
To date, Downing’s bonds have generated an average annual yield of 5.28 percent, with zero percent bad debt. However, some of its real estate development loans have a return target of 10% or more.
EasyMoney’s real estate backed loans offer between 3.08% and 8% per annum, depending on the quality of the loan offered.
Folk2Folk retail and institutional investors can earn up to 6.5% per year by investing in rural properties and businesses.
Specializing in short and medium term consumer loans, Fund Ourselves targets returns of up to 15% for its investors.
Invest and finance
The residential and bridging lender is targeting around 6.5 percent per year for its investors, with zero percent of bad debts to date.
JustUs real estate-backed loans are priced on a case-by-case basis, but currently listed loans are advertised with target yields of between 6.5% and 9%.
Kuflink is targeting up to 7.2% for its investors, by investing in secured real estate loans. The platform often offers cashback offers that can further increase the total value of investor returns.
LandlordInvest specializes in residential rental and bridging loans, and advertises target returns of between 5 and 12 percent to lenders.
Leap Lending offers investors up to five percent by investing in consumer loans.
Loan of works
Up to 4.5 percent per year is expected for investors in Lending Works personal loans.
Silver & Co
Money & Co’s IFISA targets seven percent per year by investing in legal loans, music loans, and other business loans.
In 2020, real estate lender Proplend returned an average of 7.26% to investors. Currently, it offers loans with yield targets ranging from 6.85% to 11.35%.
Rebuildingsociety’s average net returns are 8.6 percent, but it is known to list loans with target returns of up to 15 percent.
Specializing in commercial real estate, Relendex offers rates of up to 11% on its loans.
Unbolted offers loans secured by luxury assets. Investors can earn up to 10 percent per year.
The world’s leading P2P platform still offers returns above inflation, with rates between 2% and 5.3%, depending on how much risk the lender is willing to take.
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