IT MAY be the summer season, but peer-to-peer lenders are still keeping busy with new product launches and crowdfunding campaigns.
Here are some of the latest developments in the sector.
The House Crowd’s new Money Mog brand will enable customers to invest small amounts into its P2P loans on a monthly basis, making it particularly attractive to younger investors.
It will offer annual returns of up to 5.5 per cent on P2P investments secured by UK property, with a deposit of just £100 and a minimum investment of £50 a month.
The interest rate starts at 3.5 per cent, with an additional 0.5 per cent added for every investor referral, up to a maximum of four.
The House Crowd has also just announced that it is looking to raise up to £1m on Seedrs to expand its product range.
P2P education financier Lendwise has launched a secondary market, which will enable investors to cash out fully or partially before their loans reach maturity.
Lendwise said the introduction of a secondary marketplace was the latest development in the “ongoing evolution” of the platform, which specialises in funding loans for postgraduate education and professional qualification studies,
Investors earn average annual returns of eight per cent a year and loans have a five-year maturity on average, but terms can last up to 10 years.
P2P finance firm Lendable has created a fund alongside Credit Suisse to invest in Luxembourg-based credit opportunities fund.
The fund has already raised capital from 10 investors across seven geographies for a three-year investment and will initially provide £225m of financing in the UK consumer market.
The first commitments should mean the fund will be worth £150m by early 2020, with plans for it to grow to £350m by the end of next year.
MultiISA is looking to raise £110,000 on Crowdcube to finalise development of its platform that will let investors put returns from multiple P2P lending platforms into an Innovative Finance ISA (IFISA) wrapper.
MultiISA is reported to be gathering more than 50 P2P services into one ISA management platform in order to provide users with a single overview of all their ISA investments.
The crowdfunding campaign will go live at the end of August and run for 28 days.