Loanpad's new hybrid P2P platform for the UK

Low-risk platform for investors, Loanpad, has launched a hybrid peer-to-peer platform for the UK, that will offer a lower-risk investments on secured property loans.

The platform’s lending model allows investors to share loans with established property lenders. These property lenders fund the higher-risk part of each loan, earning a higher rate of interest. The platform’s retail investors will only ever invest in the lower-risk parts of the loans.

“We wanted our model to give everyday investors access to a premier lending experience,” said Louis Schwartz (pictured), Loanpad’s founder and chief executive. “By partnering with lending partners who originate our loans, we’re able to offer greater security than a typical property loan.

“As a Loanpad investor, you only fund the lower-risk senior part of the loan, while the lending partners fund the junior part and retain the first loss position. So if a loan goes bad, their investment suffers a complete loss before investors are affected.”

Loanpad offers two types of account – a classic account, which gives investors daily access to their money and can be managed free of charge; and a premium account which offers a higher interest rate with a 60-day notice period for free withdrawals, or a small charge for early access. Both accounts can be held within Loanpad’s flexible Innovative Finance ISA, and the accounts can be opened with as little as £10.

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