In the peer-to-peer lending sector, self-invested personal pensions (SIPPs) have proved less popular than their fellow tax-wrapper, the Innovative Finance ISA (IFISA)- although this is starting to change.
A growing number of platforms are now offering pension-eligible products, while more and more SIPP administrators are onboarding P2P platforms.
But which platforms are currently offering SIPPs and SIPP-eligible options?
Read more: Pensions and P2P
Blend Network offers investment via a SIPP and a small self-administered scheme (SSAS). The platform uses Morgan Lloyd for its SIPPs and Empowered Pensions for its SSAS.
The returns are the same as its other products at eight to 12 per cent per annum and over the 12 months average returns have been 9.14 per cent. Blend Network said it had seen an increase of lenders using their SIPP and SSAS to lend through the platform.
The House Crowd
Lenders can use their SIPP to invest in The House Crowd bridging and development loans or in an auto-invest product which diversifies between the two. The platform uses Morgan Lloyd as its regulated SIPP administrator.
CrowdProperty offers pension lending via a SIPP and a SASS, allowing investors to earn returns of up to eight per cent per year, backed by a first charge security.
Proplend is another platform that uses Morgan Lloyd for its SIPP, while using Westerby Trustee Services Limited for its SSAS. The platform, which focuses on commercial property, made 100 per cent lender interest payments in full during 2020 and improved its balance sheet, despite the ongoing Covid-19 crisis.
The property lending platform offers up to 12 per cent per annum returns through SIPP and SSAS investments in the platform’s loans.
Invest & Fund
Invest & Fund told Peer2Peer Finance News that about 15 per cent of the cash it lends is through SIPPs and that SIPP lending has been important to the peer-to-peer property lending platform as the SIPP accounts tend to have larger balances than the IFSA the platform offers.
SIPP investors can choose which loan opportunity to invest it on the platform. Last summer Folk2Folk said that no SIPP investor had lost any money via the platform to date.
The platform has a relationship with some SIPP providers which allow their investors to invest in P2P loans. It received its first SIPP money in 2017.
Money&Co works with some SIPP administrators. The platform’s chief executive Nicola Horlick has previously told Peer2Peer Finance News that she believes it is an ideal income stream, which is perfect for pensions.