A brief guide to peer-to-peer lending: our 4-part series
1. Five reasons to consider peer-to-peer lending - The UK’s peer-to-peer (P2P) lending market has grown exponentially since first mover Zopa launched in 2005.
3: Maximising your benefit from peer to peer lending - Peer-to-peer platforms allow investors to lend money directly to individuals and businesses.
4: Getting started in peer to peer lending - Peer-to-peer (P2P) lending has continued to find favour amongst income-hungry investors who are fed up with the low interest rates on offer from deposit accounts.
The general term for the rate of income from an investment expressed as an annual percentage and based on its current market value. For example, if a corporate bond or gilt originally sold at £100 par value with a coupon of 10% is bought for £100 then the coupon and the yield are the same at 10%, or £10. But if an investor buys the bond for £125, its coupon is still 10% (or £10) and the investor receives £10 but as the investor bought the bond for £125 (not £100) the yield on the investment is 8%.