Blog
19th March 2015

Peer-to-Peer Investors Quadruple Their Returns on Average

Peer-to-Peer Investors Quadruple Their Returns on Average

 

Great news for P2P investors as the industry makes an average return of 5.09% across the last 12 months! This is over four times the amount you may have expected to earn on deposit from a major bank or building society in the same time period. This news originates from the first ever index of P2P lending returns made by financial analysts, Altfi Data.

Returns Between 4.5% and 6.2%

Within this index are returns figures ranging between 4.5% and 6.2% – making an average of just over 5%. In comparison, over the same time period, the best instant access savings account paid only 1.25%. Although this comparison is hardly objective as P2P lending exposes investors to risk; whereas bank accounts are risk averse and offer the Financial Services Compensation Scheme to all customers.

This doesn’t make the gap any less significant though and these figures again go on to prove how popular P2P finance is becoming in the UK. Despite the differences in risk, we should not undervalue the substantial variance between these two percentages.

Index Long Overdue

We should also not underestimate the significance and importance of the first ever index for the alternative finance industry. Before now the sector lacked a credible benchmark against which to challenge its bold claims of high performance levels. The launch of this index now provides that benchmark. For the time being, Altfi Data base their figures on just three platforms, Zopa, Funding Circle and RateSetter.

Ultimately, the creation of an independent index is another positive step forward for the alternative finance industry and one that emphasises its growing maturity. P2P lending sits at the forefront of this industry and will only continue to grow in popularity.

Wellesley & Co. are an asset backed Peer-to-Peer lender that have seen massive growth throughout their short life. The firm have won the AltFi Award for the Fastest Growing Peer-to-Peer Lender of 2014, funded the largest P2P loan in history and are continuing their exponential growth by providing lenders with pioneering market leading products.

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

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