Since the launch of our Resale Marketplace in November 2016, more than £1 million worth of Loan Parts has been traded on our secondary market. This shows that lenders have really taken to the Resale Marketplace where they are able to buy and sell Loan Parts at par with no fees charged.

Lenders are able to utilise the secondary market in order to diversify their portfolio. So where a lender may have missed the opportunity to bid on a loan, they may buy it off a fellow lender looking to sell. New lenders to the platform find this especially useful given that they can earn interest immediately when buying performing Loan Parts.

A secondary market also provides lenders with liquidity should they need it. While loans on our platform are normally seen as long-term investments, occasions arise where a lender will need early access to their money. By providing a secondary market feature, we are able to provide lenders with the flexibility to offer their Loan Part for sale and withdraw the cash if someone buys the Loan Part.

We are glad the lenders are using the Resale Marketplace to its full advantage. We want to provide lenders with the flexibility to diversify and liquefy their portfolios as they see fit. Which is why we decided early on not to impose any charges on the secondary market.

With the launch of our Innovative Finance ISA, we are only expecting activity on our Resale Marketplace to increase as more lenders frequent it.