Do you have money sitting in a bank account? If so, inflation is taking a bite out of your money every single day. Loanpad gives you a simple, stable way to keep inflation at bay and grow your investments for the future with a degree of risk.
We partner with established property lenders and spread your money evenly every day across a portfolio of secured property loans
Open a Loanpad ISA and start investing with as little as £10 and grow your money tax-free
Reinvest your daily interest and reap the benefits of compound interest
Move your money between accounts and check your interest any time
Choose the account that suits you best, with or without an ISA wrapper. You can move money between Loanpad accounts and check your interest 24/7.
These are annual rates paid daily into your cash account – after fees but before tax. If you choose to reinvest your interest daily, you’ll enjoy even higher returns. Rates are variable and could change.
We do all we can to release your money as soon as you ask for it. But this does depend on funds being available, and from time to time there may be a slight delay.
If you’re 18 years or older, resident in the UK, with no more than £20,000 invested in a current year ISA
We’ve designed Loanpad for maximum simplicity, transparency and safety. We don’t charge a fee, but make a margin on the rate of interest paid by borrowers. Essentially, we make money when you make money – so it’s in everyone’s interest to make sure every single loan is rock-solid.
No lending account is completely risk-free. But Loanpad is built to keep the risk to your money as low as possible. Here’s how.
Every day your money is diversified across our entire book of loans. Not only does this reduce the impact from any one borrower defaulting, but it means there’s no difference between drip feeding money into your Loanpad account or putting in a lump sum. You get the same great rates at the same risk either way.
The loans made with your money are shared with our lending partners – we only work with carefully vetted established lenders. They manage each loan with our oversight and are responsible for the higher risk part (called the ‘junior tranche’). As the lending partner will always take at least 25% of the loan, there’s lower risk to you if a borrower defaults. If this does happen, your money will be repaid (plus interest) before the lending partner’s share.
This also means it’s in our lending partners’ interest to check potential borrowers extensively, just as we do.
We only take on carefully vetted lower-risk property loans. As part of our extensive due diligence for approving each loan, we look at the credit history, experience and activity of each borrower and review asset and liability statements and payment history. Our panel of surveyors and solicitors also check the legality and security of every potential loan and borrower. We carefully review the exit strategy for each loan – and all loans are backed (secured) by property that we can sell to recover your money if the loan defaults.
We safeguard your daily income using this unique ring-fenced fund which covers your daily interest payments if any borrowers fall behind on their payments. With short-term property loans, delays can happen – this fund exists to make sure you get paid daily, in full. You can see real-time details of this fund on our platform at any time. More about the interest cover fund.
Loanpad is a smart way to increase your investments while keeping risk as low as possible.