CapitalStackers Review

What it is

CapitalStackers is a UK peer-to-peer platform, based in Stockport, where investors lend to property developers alongside banks. It says it has raised £273.2 million and repaid £198.8 million, with £10.8 million still lent out (read November 2026). Its loans fill the gap between what a bank lends and what a developer needs.

How it works

Each deal is split into layers. A bank or debt fund usually provides the senior loan, and CapitalStackers investors fund the layer above it. In the primary market investors bid in an auction: the lowest rates win. You need at least £2,500 per deal (some deals ask more), or £500 when buying on the secondary market. The platform says all construction funding must be in place before investors' money is released.

Returns

The platform shows an average current return of 10.11% a year on its live loans (read November 2026). This is the rate agreed on loans still running, not a return after losses. The best single layer in the primary market pays 28.07% a year. No return after losses is published.

Losses and defaults

8.44% of capital on historic, closed loans has been written off; the platform does not say what this is measured against. It has also set aside provisions of 5.62% of the current book for loans at risk of total loss, and says its provision ratios have increased. Four loans are impaired, including a scheme where the senior lender appointed an administrator. Deals often run past their end date; the platform gives examples repaid 14 and 16 months late.

What secures your money

Every CapitalStackers loan is secured on the property being built or bought, but investors usually lend the slice above a bank or debt fund: the senior lender takes perhaps 50-55% of the value and the investors' layer tops it up to at most 75% in the primary market (higher-risk 'underwriter' layers go further and are for experienced investors only). The senior lender is repaid first, so if values fall by more than the cushion below 75%, the investors' layer takes the loss and can be wiped out; the platform says total loss has happened for some investors who concentrated their money. A separate company, CapitalStackers Trustees Ltd, controlled by directors of a firm of chartered accountants, holds the security for investors. Developers' personal guarantees are sometimes used in recoveries. There is no buyback, provision fund or insurance. 8.44% of capital on closed loans has been written off, and on one London scheme 36% of the written-off capital was later recovered.

Who runs it and its licence

The platform is run by CapitalStackers Limited (company 7361691, England), authorised and regulated by the UK Financial Conduct Authority, firm reference number 722549. Its Innovative Finance ISA, launched on 9 December 2022, is managed by Goji Financial Services Ltd (FCA firm reference number 805323). Directors and their close family invest alongside members.

Fees

Investors pay no joining fee and no other fees or ongoing management charges; the platform may add a small charge for identity checks later. Secondary market sales are currently commission free. Borrowers pay the platform's margin and exit fees.

Getting your money out

Money stays in a loan until it is repaid, which is often later than planned. You can offer your share on the secondary market, where loans can sell at a premium or a discount, but a buyer is not guaranteed. If the platform stopped trading, it says a firm of chartered accountants would look after investors' interests until each deal ends.

Our view

Return: High, from an average current return of 10.11% a year. Risk: Very high (higher means more risk): 8.44% of capital on closed loans has been written off, investors usually lend behind a bank, and deals often run more than a year late. Risk-return: Low, because the high return does not make up for losses of that size.