Peer closely – but carefully – at peer-to-peer property investments

The interest rates on peer-to-peer property investments may look appealing, but investors should tread carefully.

New-build flats © BEN STANSALL/AFP/Getty Images

P2P rates are competitive in some buy-to-let sectors
(Image credit: New-build flats © BEN STANSALL/AFP/Getty Images)

Whether you're selling your house or buying wine, cutting out the middleman can help you secure a better deal. Peer-to-peer (P2P) lending works on this principle too. By bringing together investors and borrowers, a P2P platform can offer each party terms they wouldn't have been able to access readily through a more traditional financial institution. For the investor, who lends the money, it's the prospect of a higher return; for the borrower, it's the potential for a cheaper rate, a faster application process (hours rather than days in the case of P2P business lending) and a higher probability of getting a loan.

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