Proplend - Risk and return review
Proplend - Returns and loss rates
Proplend – Platform statistics 2026
Proplend – Pros & Cons
About Proplend
What it is
Proplend is a British peer-to-peer lending platform run from London. Private investors lend to landlords and property companies, and every loan is secured on a property that already has paying tenants, mostly commercial buildings such as offices, industrial units and shops. The company was set up in December 2012 and started lending in 2014. Its statistics page shows £292.5 million lent through the platform and £221.1 million of capital already repaid (checked October 2026). By 31 December 2025 it had funded 305 loans, of which 227 were fully repaid.
How it works
Each loan is cut into up to three slices by how much of the property's value it covers. Slice A covers the first 50% of the value, slice B the part from 51% to 65%, and slice C the part from 66% to 75%. They are repaid strictly in that order: A first, then B, then C. Slice A pays the least and C the most, because C is the first to lose money if the property sells for too little. You buy loan parts from £1,000, in steps of £1,000, either yourself or through Auto-Lend, which invests only in slice A. The tenants' rent pays the interest, which is paid monthly. You can hold the loans in an ordinary account, a tax-free Innovative Finance ISA or a self-invested pension.
Returns
Proplend's home page shows a weighted average actual return of 8.26% a year across all three slices, after its fee and before tax (seen October 2026). The figure carries no date and no explanation of how it is calculated. The dated figures are clearer. In the 12 months to 31 December 2025, active loans paid on average 7.22% a year in slice A, 9.09% in slice B and 10.84% in slice C, after fees and before bad debts and tax. Auto-Lend, which uses slice A only, earned 8.23% in 2025 against a 6% target. The investor page advertises a range of 5% to 12% a year, while the home page still shows older slice rates from the 12 months to December 2022 (6.05%, 7.87% and 9.81%).
Losses and defaults
Investors have lost very little so far. Lenders have lost £0.25 million in total, on two loans: £0.04 million on a 2018 loan and £0.21 million on a 2021 loan, where a personal guarantee is still being pursued. That is about 0.09% of all money lent (as at 31 December 2025, calculated from the platform's own figures). Both losses fell on the junior slices B and C; slice A investors have not lost money.
Defaults are low but not rare. 11 of the 305 loans (3.61%) have defaulted since 2014, meaning a payment was more than 180 days late or the borrower could not repay without the security being sold (as at 31 December 2025). None of the loans made from 2022 to 2025 has defaulted so far. Late repayment is more common: at the end of 2025, 11 loans were past their repayment date by less than 180 days, one by more than 180 days, and two were behind on interest. That is about one in six of the roughly 78 loans still running, calculated from the platform's own figures.
What secures your money
Every loan has a first legal charge over a let property, valued by an independent chartered surveyor. Borrowing is capped at 75% of the property's value, and the average across all loans is 58.71% (October 2026). On term and bridging loans Proplend keeps at least three months of interest in reserve, so payments can continue while it deals with a borrower who falls behind. Some loans also carry a personal guarantee from the borrower. There is no provision fund, no buyback and no compensation scheme for money that is lent out.
Proplend publishes a stress test: if property values fell by 30%, it expects losses of 0% in slice A, 2% in slice B and 5% in slice C. It does not publish how much it has recovered from defaulted loans, but only two of the 11 defaults caused any loss. In plain words: slice A investors lose money only if a property sells for less than about half its valuation; slice C investors are the first to absorb a shortfall.
Who runs it and its licence
The platform is run by Proplend Limited (company 08315922, England and Wales). It has been fully authorised by the UK Financial Conduct Authority since 1 March 2017 (firm reference 726646) to run a peer-to-peer lending platform, and it is approved by HM Revenue & Customs as an ISA manager. It publishes the yearly outcomes statement the regulator requires, the latest for the year to 31 December 2025. No regulator action against it was found. It files small-company accounts, so no profit and loss figures are public.
Fees
Proplend takes 10% of the gross interest the borrower pays you, deducted from each interest payment; this also applies to penalty interest and early repayment charges. The rates quoted above are already after this fee. Selling a loan part on the Loan Exchange costs 0.5% of its outstanding value. Opening an ISA and transferring an ISA in are free; a £35 fee applies to more than one ISA transfer out in the same month.
Getting your money out
You can sell loan parts to other investors on the Loan Exchange, which normally clears quickly. Parts sell only at face value, there is no discount option, and a sale depends on a buyer being there: in March 2020 investors reported sellers far outnumbering buyers for some months. Loans that are behind on payments cannot be sold. Otherwise your money returns when the borrower repays, and one in six running loans was late at the end of 2025. Uninvested cash is held in a client account at Barclays and covered by the UK compensation scheme up to £85,000; money lent out is not.
Our view
Return: Medium — the platform reports an average actual return of 8.26% a year across its three slices, after its fee. Risk: Very Low (higher means more risk) — investors have lost about 0.09% of all money lent, which is what sets the level, on first charges over let property; the late loans are a warning, as about one in six running loans was late at the end of 2025. Risk-return: Low — on the platform's own stress test the highest-paying slice would earn 5.84% a year after expected losses, less than the lowest-paying one, so the extra interest does not pay for the extra risk.
Regulation
License / Regulation: Proplend Limited (company 08315922, England and Wales) is authorised and regulated by the UK Financial Conduct Authority (firm reference 726646) to operate a peer-to-peer lending platform, fully authorised since 1 March 2017. It is also an HM Revenue & Customs approved ISA manager. Money lent out is not covered by the Financial Services Compensation Scheme.
Functionality
For Investors
Useful Information
Yes. Proplend Limited is authorised and regulated by the UK Financial Conduct Authority (firm reference 726646), fully since 1 March 2017, and is an approved ISA manager. Regulation does not protect you from losses on the loans.
Cash you have not yet lent sits in segregated client accounts at Barclays, apart from Proplend's own money, and is covered by the UK compensation scheme up to £85,000. Once lent, your money is in loans to property owners and is not covered.
£1,000 per loan part, in steps of £1,000. There is no maximum at present.
The home page shows an average actual return of 8.26% a year after fees (undated). In the 12 months to 31 December 2025 the three slices paid 7.22%, 9.09% and 10.84%. Lenders have lost £0.25 million on two loans, about 0.09% of all money lent, and 11 of 305 loans (3.61%) have defaulted since 2014.
Each loan has a first legal charge over a let property, valued by an independent surveyor, with borrowing capped at 75% of its value (58.71% on average). At least three months of interest is held in reserve on term and bridging loans, and some loans carry a personal guarantee. There is no provision fund or buyback; the junior slices B and C take any shortfall before slice A.
That depends on how much risk you accept. Slice A is repaid first and paid 7.22% in 2025; slice C is repaid last and paid 10.84%. Both losses so far fell on slices B and C. On Proplend's own stress test with property values down 30%, slice C would earn 5.84% a year after expected losses and slice A 7.22%.
You can list loan parts on the Loan Exchange for a 0.5% fee. They sell only at face value and only if a buyer is there, and loans that are behind on payments cannot be sold. Otherwise your money returns when the borrower repays, which is often late: one in six running loans was past due at the end of 2025.
Proplend keeps 10% of the gross interest you receive, already deducted in the quoted rates. Selling on the Loan Exchange costs 0.5% of the amount sold. A £35 fee applies to more than one ISA transfer out in a month. There are no account or withdrawal fees listed.
If a borrower fails, the property can be taken over by a receiver and sold, and the money is paid out slice by slice, A first. If the platform fails, the loans and their charges remain in place, but collecting them through another firm could be slow. Money lent out is not covered by any compensation scheme.
