Significant Record Origination Month for UK Marketplace Lending

Published by Neha Manaktala on April 27, 2018

UK market place lending volumes hit £579m in March a significant uplift on the previous record set in November at £504m. Seasonally March has tended to be a strong month but this 15% uplift on the previous high suggests strong momentum for the sector as 2018 develops. Amongst the individual platforms MarketInvoice is on a notable growth tear suggesting that their new products are being well received with the business finance originator setting a new monthly record of £124m worth of new loans. Assetz Capital, Lendable and Octopus Choice also showed strong growth for the month.

Amongst the originators who provide loan level data to allow disclosure to a consistent standard there is a persistent trend of rate compression. Reviewing weighted average outbound interest rates shows steady declines with the only exception being Funding Circle, which is managing to maintain a consistently higher lending rate.