When I first discovered Lendermarket in 2022, I was searching for better returns than traditional savings accounts. After researching various P2P lending platforms, Lendermarket caught my attention for its straightforward approach and transparent fee structure.
After several years of investing on the platform, I can share my genuine experience with what has become a reliable part of my investment portfolio.
Returns and Performance
Lendermarket advertises an average annual return of 15.58%, which initially seemed optimistic. However, my experience has been largely positive, with steady returns that consistently outperform traditional savings accounts.
The platform delivers on its promise of zero commission fees, which is refreshing in an industry where hidden charges can eat into profits. Every euro earned goes directly to your account, making the actual returns more attractive than many competitors.
That said, returns can vary depending on market conditions and the specific loan originators you're invested in. While the platform maintains good overall performance, individual experiences may differ based on investment strategy and timing.
The Auto-Invest Feature
Auto-Invest is probably Lendermarket's strongest feature. For busy investors, it eliminates the need to manually select individual loans. You set your criteria for interest rates, loan terms, and preferred countries, then let the system handle the rest.
The feature works well for diversification, automatically spreading investments across different loan originators and regions. This helps reduce concentration risk without requiring constant monitoring.
However, the system sometimes favors certain originators over others, which means you might need to adjust settings occasionally to maintain your preferred allocation. It's not completely "set and forget," but it's close enough for most investors.
The buyback guarantee provides additional security. When loans default, the originator repurchases them, protecting your principal. While this works as advertised, the process can sometimes take longer than the stated timeframes during busy periods.
Loan Originators and Diversification
Lendermarket partners with established loan originators across different countries, each bringing unique strengths to the platform.
Rapicredit (Colombia)
Offering 18% average interest rates, Rapicredit focuses on microlending in Colombia. Their 10% skin in the game demonstrates commitment to loan quality. The higher rates reflect the emerging market opportunity, though this also means higher inherent risk.
CrediFiel (Mexico)
CrediFiel provides 12% average returns with a focus on financial inclusion in Mexico. They maintain solid performance with reasonable risk levels, making them a good balance option for conservative investors.
Dineo (Spain)
For European exposure, Dineo offers 12% returns through both online and offline consumer loans. Their physical presence across Spain adds stability, though returns are naturally lower than emerging market opportunities.
The geographic diversification is valuable, spreading risk across different economies. However, this also means exposure to currency fluctuations and varying regulatory environments, which some investors might prefer to avoid.
Security and Platform Reliability
Security was my primary concern when starting with P2P lending. Lendermarket addresses this through several mechanisms.
The buyback guarantee is the main protection, ensuring loan originators repurchase defaulted loans. This works effectively, though processing times can vary depending on market conditions and originator workload.
Each loan originator maintains 5-10% ownership in their loans, aligning their interests with investors. This "skin in the game" approach helps ensure quality control and responsible lending practices.
The platform operates under appropriate financial regulations, providing necessary legal frameworks. However, P2P lending remains less regulated than traditional banking, which investors should consider.
Customer support has been generally responsive when I've needed assistance, though response times can vary during peak periods. The team is knowledgeable about the platform's features and investment strategies.
User Experience
The platform interface is clean and intuitive, making it accessible for both beginners and experienced investors. Account setup is straightforward, and the dashboard provides clear information about your investments and performance.
Navigation is logical, and most features are self-explanatory. The mobile experience works well for checking performance on the go, though most serious portfolio management is better done on desktop.
One minor drawback is that detailed loan information is somewhat limited compared to platforms like Mintos. If you prefer extensive due diligence on individual loans, you might find the available data insufficient.
Practical Considerations
Getting started with Lendermarket is relatively simple. The verification process is quick, and you can begin investing shortly after your first deposit. The minimum investment requirements are reasonable, making the platform accessible to various investor sizes.
Liquidity is worth considering. While you can withdraw funds, you'll need to wait for loans to mature or be repurchased. This typically takes several weeks to months, so it's not suitable for emergency funds or short-term savings.
The platform works best for investors with medium to long-term horizons. If you're looking for quick access to your money, traditional savings accounts might be more appropriate despite lower returns.
Tax implications vary by country, and the platform doesn't provide tax advice. You'll need to understand your local requirements for reporting P2P lending income.
Who Should Consider Lendermarket
Lendermarket suits investors comfortable with moderate risk who want higher returns than traditional savings accounts. It's particularly good for those seeking passive income without active stock market involvement.
The platform works well for portfolio diversification, especially if you're primarily invested in stocks and bonds. The returns are uncorrelated with traditional markets, providing useful balance.
However, it's not suitable for conservative investors needing guaranteed principal protection. The higher returns come with corresponding risks, including potential loss of principal despite the buyback guarantee.
Investors requiring immediate liquidity should also look elsewhere. The money you invest should be funds you won't need for at least 1-2 years.
My Overall Assessment
After several years with Lendermarket, I consider it a solid addition to a diversified investment portfolio. The platform delivers on its core promises of good returns and passive investing, though not without some minor inconveniences.
The combination of decent returns, zero fees, and automated investing makes it competitive in the P2P space. The buyback guarantee provides reasonable security, though it's not foolproof insurance.
What I appreciate most is the platform's transparency about fees and processes. There are no hidden charges, and the investment mechanism is straightforward to understand.
The main limitations are liquidity constraints and the need for occasional portfolio rebalancing. These aren't deal-breakers, but they're worth considering in your investment planning.
For investors seeking to diversify beyond traditional assets while maintaining a relatively passive approach, Lendermarket represents a reasonable option. Just ensure you understand the risks and don't invest more than you can afford to have tied up for extended periods.
Overall, it's a platform that does what it promises, with realistic expectations about both returns and limitations.