We love hearing more about our lenders, their stories and what attracted them to invest in peer-to-peer lending. In this Q&A session we caught up with Caroline, a lawyer from Hampshire. We asked Caroline more about her experiences with peer-to-peer lending and how important investments are to her.
What first attracted you to invest in peer-to-peer lending?
Having grown tired of the low returns I was receiving from my savings account, and somewhat dissatisfied with the unpredictable fluctuations of share values, I began exploring the alternatives like crowdfunding, which is when I came across peer-to-peer lending. Crowdfunding was too unpredictable for me, but, peer-to-peer lending seemed like a less risky option.
How long have you been investing in peer-to-peer?
I’ve been investing since 2014, and it’s been pretty straight-forward so far.
How important are investments to you in the current stage of your life?
Very important. It’s never too early to be thinking about the future and I want to ensure that I’m covered for my retirement. With some discrepancy around the final amount of state pensions, I consider my investment in peer-to-peer as a long term relationship with a decent level of return.
What financial goals are you looking to achieve from your investment?
I’m looking for a decent level of return for the lowest risk possible. I don’t like the idea of my savings just sitting there losing value to inflation. Whilst Landbay offers a slightly lower level of return versus some of the other peer-to-peer lenders, the fact that my investment is secured against property is reassuring.
How do you find peer–to-peer investing compared to more traditional savings?
I had some slight apprehension to begin with, as I’ve always kept my money in a bank savings account or with better known institutions. However, after doing some further reading about peer-to-peer lending, it made sense.
When choosing a peer-to-peer platform to lend on, what were the important things you looked for?
I needed a platform that gave returns I could really understand. I actually have a few buy-to-let properties myself so I know how lucrative they can be when managed well. But the security is not the only issue, I also needed to trust the people in charge of my money. I read some encouraging press about Landbay and I like how transparent they are. The fact that you can see their whole loan book is a big plus for me as it helps me to understand where my money is going.
Why did you choose to invest with Landbay?
I was recommended Landbay by a friend. She explained that my investment would be placed into residential buy-to-let mortgages which is an asset class I know. The process of lending was very simple and the friendly, responsive approach of their team ensured that any queries I had were answered quickly.