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Peer-to-peer lending


trousers
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I was doing a search on one of those comparison websites for best loan rates and the lowest interest rate by far was from 'ratesetter.com'.

 

I'd never heard of them before so did a bit of digging around and found out they are one of a growing number of peer-to-peer lending/borrowing sites, where you effectivley borrow off a pool of other individuals, rather than a bank, with ratesetter.com sitting in the middle creaming off a relatively small fee.

 

Another company, Zopa, seems to be the biggest name in this field.

 

Recent FT.com article: http://www.ft.com/cms/s/2/a0c4b460-2b0f-11e0-a65f-00144feab49a,dwp_uuid=6997947c-a442-11dd-8104-000077b07658.html#axzz1CyueqIr0

 

Ratesetter website: http://www.ratesetter.com/default.aspx

 

Anyone got any experiences of using these companies, either as a lender or a borrower?

 

The one downside I can see is there isn't as much protection for the lender (aka investor) as you would get by leaving your money in a bank account but there aren't any major risks leaping out at me from the borrower's persepctive.

 

Thoughts?

Edited by trousers
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