Asset class · Peer-to-peerUpdated September 2026

    Consumer Lending for UK Private Investors

    Peer-to-peer consumer lending lets individuals fund personal loans and earn the interest. Learn how the model works, why most UK platforms have closed to retail, and what remains.

    Compare consumer lending platforms →Learn how it works
    5
    active UK platforms
    £10+
    typical entry point
    1–5 yrs
    loan terms
    Medium
    risk · medium liquidity
    At a glance

    Consumer Lending in ten seconds

    Drawn from the 5 UK platforms we track in this category and our editorial research.

    Typical investment
    £10–£20k
    Investment horizon
    1–5 years
    Liquidity
    Medium, via secondary market
    Risk
    Medium
    Return potential
    Low–medium
    Income
    High
    UK retail access
    Shrinking
    Common structures
    P2P marketplaces, auto-invest accounts, IFISA
    What it is

    What is consumer lending?

    Consumer P2P lending matches individual lenders with borrowers seeking personal loans, car finance or pawn-style asset-backed loans, cutting out the bank.

    The UK pioneered the model with Zopa in 2005, but Zopa, RateSetter and Funding Circle have all withdrawn from retail lending. Today's market is small, specialist and more tightly regulated.

    How it works

    The consumer lending lifecycle

    Loans amortise monthly — capital returns as you go
    1. 01

      Credit check

      The platform scores borrowers and sets interest rates.

    2. 02

      Match

      Lender funds are split across many small loan parts.

    3. 03

      Repay

      Borrowers repay monthly; interest and capital flow back.

    4. 04

      Reinvest

      Auto-invest redeploys repayments into new loans.

    5. 05

      Exit

      Sell loan parts on the secondary market or run the book down.

    Ways to invest

    Three ways to get consumer lending exposure

    Auto-invest

    Diversified accounts

    Platform spreads your money across hundreds of loans at a target rate.

    £10+ minimumMedium liquidity
    Manual

    Loan-by-loan

    Pick individual borrowers or asset-backed loans yourself.

    £100+ minimumLow–medium liquidity
    Wrapped

    Innovative Finance ISA

    Same loans, tax-free interest.

    £100+ minimumMedium liquidity
    Returns

    What returns look like

    Steady monthly income of 4–8% after expected defaults, with capital returning through the term. Losses show up as a lower net rate, not a single event.

    Net return
    Interest after fees and bad debt — the number that matters.
    Default rate
    Share of loans that stop paying, typically 2–5%.
    Provision fund
    Some platforms hold a reserve to cover expected losses.
    Risks

    What can go wrong

    Capital is at risk. Most consumer lending products are high-risk investments under FCA rules and may require an appropriateness assessment.

    Borrower default

    Unsecured personal loans; recoveries are low.

    Platform failure

    Wind-down administrators may take years to return funds.

    Liquidity

    Secondary markets can close in stress, as in 2020.

    No FSCS

    P2P is not a deposit.

    Rate risk

    Fixed-rate loans lose value as rates rise.

    Market shrinkage

    Fewer platforms, less choice, more concentration.

    Access

    How UK investors can access consumer lending

    From least to most accessible. Each route trades off minimums, liquidity and control.

    Institutional

    Whole-loan funding

    Institutions fund entire loan books directly.

    Listed

    Specialist lenders

    Listed consumer finance companies and trusts.

    Bank

    Savings accounts

    FSCS-protected — the true comparison for cautious lenders.

    Platforms

    P2P platforms

    FCA-regulated marketplaces from £10, often with an IFISA.

    Asset-backed

    Pawn-style P2P

    Loans secured on luxury goods, gold and vehicles.

    Platforms

    Consumer Lending platforms in the UK

    5 active · 5 closed or inactive

    JustUs logoJustUsFCA regulatedJustUs is a UK peer-to-peer lending platform operated as a trading style of eMoneyHub Ltd, directly authorised by the FCA (FRN 787900) since September 2017.Min £100DebtElfin Market logoElfin MarketFCA regulatedUK P2P consumer credit platform offering credit-line products positioned as a credit-card alternative.Min £100DebtPlend logoPlendFCA regulatedPlend Limited (FRN 963328) is a directly FCA-authorised consumer credit lender founded in 2020, using Open Banking and a proprietary 'PLEND Score®' to underwrite personal loans for borrowers.Min N/ADebtEdAid logoEdAidFCA regulatedEdAid Ltd (FRN 673376) is a directly FCA-authorised education finance technology firm administering interest-free instalment and income-based repayment plans between students, education providers and lenders.Min £100DebtLendwise logoLendwiseFCA regulatedLendwise Ltd is a UK peer-to-peer (marketplace) lending platform founded in 2018 that specialises in unsecured loans for postgraduate study, professional qualifications, MBA, SQE and bootcamp/training fees.Min £1,000 (account); £10 per loan partDebt
    Compare all 5 platforms →
    Guides

    Go deeper on consumer lending

    Insights

    Recent research

    FAQ

    Consumer Lending questions

    Is P2P lending still available in the UK?
    Yes, but the market is far smaller. Major names withdrew from retail in 2020–22; a handful of FCA-regulated specialists remain.
    What returns can I expect?
    Net returns of 4–8% after defaults have been typical; compare against FSCS-protected savings rates before committing.
    Is my money protected?
    No. P2P is not covered by the FSCS. Some platforms run provision funds but these are discretionary.
    Can I get my money out early?
    Only if another lender buys your loan parts on the secondary market — which can freeze in a downturn.
    What is an Innovative Finance ISA?
    An ISA wrapper for P2P loans and some bonds, making interest tax-free.
    What happened to Zopa and RateSetter?
    Zopa became a bank and closed P2P in 2021; RateSetter was bought by Metro Bank and wound down retail lending.
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    Looking for the full list? Browse every consumer lending platform in the directory.

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