The peer-to-peer property industry has grown significantly over the past few years. But what are the benefits of peer-to-peer for borrowers and lenders?
Rates
The low costs of a P2P platform mean that operators take a narrower spread than traditional intermediaries. As a result, they are able to offer attractive rates to lenders.
Liquidity
P2P exchanges provide lenders with secondary liquidity, allowing them to resell loan parts.
Transparency
Extensive data relating to the borrowers and loan opportunities available on a P2P exchange are provided to prospective lenders. .
Choice
P2P exchanges offer lenders the chance to make individual loans according to their investment and risk appetite. Certain sites run auctions that allow lenders to select the rate they lend at.
Rates
In the same way that lenders benefit from the low operating costs of P2P exchanges, borrowers are also able to access loans at competitive rates in terms of coupon and LTV (Loan to Value). .
Efficiency
Many borrowers choose to use P2P exchanges rather than traditional sources of borrowing because of the ease and speed of obtaining a loan. This is a key factor in attracting high quality borrowers.
