Loanpad continues to be profitable
Loanpad had another profitable year in 2025, continuing a profitability streak which began in 2021. According to recently-filed financial statements available to view on Companies House, Loanpad’s financial position remains strong, with no corporate debt on the firm’s books and rising net assets.
The financial disclosures show that the company’s net assets grew from £2.03m to £3.40m between the year ending 31 December 2024 and the year ending 31 December 2025.
“This strong cash generation indicates that our profits are translating into real liquidity, giving the company greater flexibility to invest, expand, or strengthen our balance sheet,” said Neil Maurice, chief operating and financial officer at Loanpad.
“Our latest annual financial statements demonstrate that the company has materially strengthened our financial position year-on-year. We have been profitable every month since July 2021, and we expect our profits to continue to increase across 2026.”
Strong business model
Loanpad was launched in 2018, offering a new way for retail investors to access the property-backed lending market. It is a Financial Conduct Authority (FCA) approved lending platform which allows retail investors to invest in collateral-backed property loans alongside a group of established property lenders, called lending partners. These lending partners take the higher risk portion of each loan in return for a higher rate of interest, effectively shielding retail investors from the majority of the risk.
While past performance is no guarantee of future success, to date Loanpad’s retail investors have not lost a single penny of their capital. This is down to the platform’s commitment to strong due diligence on every loan, as well as the low loan-to-values (LTVs) on all properties which are taken as collateral.
Over the past eight years, this business model has weathered a global pandemic, and multiple macro-economic shocks which have heaped pressure on the alternative credit market. However, Loanpad has continued to both retain and attract investors, while steadily solidifying its own financial foundations to create a robust business which now boasts a strong track record of performance.
“We are delighted to have ended 2025 in profit, a testament to the hard work of our team and the strength of our business model,” said Maurice. “Since we launched in 2018, we have been focused on building a lean business that can scale sustainably over time. Our 2025 financial results are a testament to our strong business model, and our ability to deliver for investors, borrowers and shareholders.”
More milestones
Loanpad’s investor loanbook recently surpassed £135m, reflecting strong investor demand for the platform’s products, even amid a difficult macroeconomic environment.
Furthermore, the platform continues to target competitive returns to investors with the option of daily account access, and the opportunity to shelter investments within an ISA wrapper. At the time of writing, Loanpad’s classic account was targeting returns of 4.8%, while the premium account was targeting 5.8%.
“We take great pride in our transparency,” said Maurice. “All of our lending statistics including the latest target returns can be seen on our website, and all of our financial statements can be viewed on Companies House.
“We want our investors and borrowers to feel reassured that they can check our company’s financial health and our loanbook’s performance at any time.”
| Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more. |
Loanpad passes £135m milestone as growth journey continues.
Loanpad’s investor loanbook has surpassed £135m, demonstrating the property-lending platform’s ability to grow organically and steadily over time.
This milestone has been reached without any capital losses to investors to date, thanks to the platform’s rigorous due diligence process and ability to originate good quality, property-backed loans.
“Since Loanpad was established eight years ago, we have remained true to our mission – to deliver competitive, risk-managed returns for our investors simply and effectively,” says Neil Maurice, chief operating and finance officer at Loanpad.
“Today we are proud to say that our investor loanbook has grown to more than £137m, with zero capital losses to date. We have managed this growth throughout a global pandemic, fluctuating interest rates, and multiple macroeconomic shocks.
“This ability to grow our platform and deliver for our investors and borrowers is a testament to the hard work of our team, and our commitment to strong due diligence throughout the lifetime of every loan.
“Our business model now has a proven track record, and we are looking towards our future growth, onboarding more lending partners and supporting more borrowers across the UK at a time when fair financing is becoming increasingly hard to find.”
A focus on disciplined growth
Loanpad was launched in 2018, with the aim of enabling retail investors to back short-term property loans in the UK. Investments are raised from a combination of a select group of lending partners, as well as Loanpad’s ever-growing pool of retail investors. Currently, our lending partners share of the loans is more than £104m, while our retail investor base has invested more than £136m. This means that our live loanbook is currently valued at more than £240m.
We believe that our phenomenal growth story is due to the diligent and conservative management of the platform, as well as the loyalty of our investor base.
In just eight years, Loanpad has become an established part of the UK’s property lending market, growing its loanbook from £10m in 2020, to £50m in 2022 and £137m today.
Transparency has always been at the heart of Loanpad’s business. We are registered with the FCA, and we report all lending statistics on our website. We don’t charge any fees to our investors, but we do make a margin on the rate of interest paid by borrowers.
We also prioritise conservative loan-to-value (LTV) ratios on all property loans, to ensure that our investor capital is protected in the event of a borrower default. As a result of these measures, not a single investor has lost a penny of their capital through Loanpad.
This approach has helped us to build a loyal community of backers who choose to keep investing with Loanpad year after year.
“We would like to thank our investor base for all of their support over the years, and for trusting us with their hard-earned money,” says Maurice. “We are here for the long term, and we intend to maintain the highest standards by choosing great loans and delivering great returns for our investors.”
| Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more. |
P2P INSIDER
Supercharge your understanding of Peer to Peer investing todayThe end of the tax year is quickly approaching, with this year’s ISA deadline expiring on 5 April 2026. That means that investors and savers have just a few weeks left to decide where to keep their money before the ISA deadline, in order to avoid unnecessary taxation.
In an investment landscape shaped by persistent inflation, shifting interest rate expectations and geopolitical volatility, it can be hard to decide between the relative safety (but limited yield) of a Cash ISA, and the opportunity (but relative risk) of a Stocks and Shares ISA or an Innovative Finance ISA (IFISA).
When making a last-minute ISA choice ahead of the ISA deadline, you need to consider your broader financial objectives, whether this is tax efficiency, capital preservation, or long-term wealth generation. It is also important to be aware of the level of risk that you are comfortable with, before choosing a new investment account.
So how do you decide where to put your money before the ISA deadline arrives?
Understanding your options before the ISA deadline
All UK taxpayers have four main options when it comes to ISA accounts. These are:
- Cash ISAs – offered by most banks and building societies, with rates often fixed across one, two or five years.
- Stocks and Shares ISAs – offered by most investment platforms, with the ability to choose a bespoke or a strategic portfolio of stocks and shares, adjusted for your individual risk requirements.
- IFISAs – offered by most peer-to-peer lending platforms, crowdfunding platforms, long-term asset funds (LTAFs) and open-ended property funds, subject to investor eligibility.
- Lifetime ISAs (LISAs) – offered by some banks and investment platforms, this ISA is capped at £4,000 per year and can only be used for a first home purchase or pension, subject to investor eligibility.
For the current 2025/26 tax year, up to £20,000 can be invested in either a Cash, Stocks and Shares or Innovative Finance ISA before the ISA deadline. However, from April 2027, the Cash ISA allowance will be reduced to £12,000.
The diversity of choice in the ISA space means that you can choose to spread your annual allowance across a range of different types of saving and investing accounts before the ISA deadline. For example, you may choose to use up the entire £4,000 LISA allowance, and then divide the remaining £16,000 allowance across Cash, Stocks and Shares, and IFISAs.
It is also possible to diversify your money even further by investing in several different Cash ISA accounts, Stocks and Shares accounts and IFISAs.
But when time is of the essence, and geopolitical challenges are wreaking havoc with the global equity markets, decisive action is required.
Why consider an IFISA before the ISA deadline?
Every ISA has its place. Cash ISAs can provide capital security and liquidity, but real returns may be modest once inflation is taken into account. Stocks and Shares ISAs offer market exposure and long-term growth potential, but short-term volatility can be uncomfortable, particularly in uncertain macroeconomic conditions.
For investors who are seeking yield without full equity market exposure, the IFISA is worth a closer look.
An IFISA allows investors to earn tax-free returns by lending through FCA-regulated peer-to-peer and private credit platforms. This offers diversification away from the equity markets, and the possibility of earning fixed returns by backing British businesses and supporting the domestic property market.
The key risk with IFISAs is that one or more of the underlying loans will fall into default. This risk can never be completely eliminated, but it can be minimised through good portfolio management and the addition of collateral on all loans.
Before choosing an IFISA, do your due diligence on IFISA providers and make sure that you choose one which is FCA-registered, and has a long track record in the market. While past performance is no guarantee of future returns, it is also helpful to look at a platform’s history to get a sense of how it responds during times of economic stress, such as the Covid pandemic.
Timing is important when it comes to investing, but in a rapidly changing world with multiple stress factors hitting the market simultaneously, the priority should be to simply make smart and informed choices with your money while taking full advantage of any tax efficient benefits that are available to you. Before the ISA deadline has passed, carve out some time to look at your financial goals and shelter your cash from the tax man, ideally whilst also earning inflation-beating returns.
| Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more. |
There has been a lot of chatter about ISA reform lately, leaving many savers and investors unsure about where they stand with their ISA portfolios.
In her Autumn Statement, Chancellor Rachel Reeves announced that the Cash ISA allowance would drop from the current £20,000 to £12,000 in the 2027/28 financial year. For now, UK taxpayers can invest a total of £20,000 in ISA accounts, including Cash ISAs, Stocks and Shares ISAs, and Innovative Finance ISAs (IFISAs). Up to £4,000 can be added to a Lifetime ISA and up to £9,000 into a Junior ISA, just as long as the £20,000 annual ISA limit is not breached.
Unlike a Cash ISA where you earn interest from cash savings, IFISAs allow you to earn returns from alternative investments, most commonly peer-to-peer (P2P) loans and other forms of direct lending. For income-seeking investors, that can be appealing. But it also comes with additional complexity and risk.
In the 2025/26 tax year, IFISA rules remain broadly stable. However, recent reforms have significantly expanded what can sit inside an IFISA.
What’s different about IFISAs
The IFISA was initially created to allow UK taxpayers to invest in P2P lending and crowdfunding platforms but as of 6 April 2024, the IFISA remit was expanded to include long-term asset funds (LTAFs) and open-ended property funds for the first time.
This change was designed to enable everyday investors to access a wider variety of long-term, less-liquid asset classes within a regulated ISA framework.
In the past, IFISA investors had to choose just one IFISA to invest in per year, but this restriction has now been lifted. Investors can now hold multiple IFISAs across different providers, up to the £20,000 annual ISA allowance.
Who can invest in an IFISA
Any UK taxpayer over the age of 18 can open an IFISA with a registered IFISA provider and start investing in P2P lending, LTAFs and open-ended property funds. Up to £20,000 can be held within an IFISA each financial year, and this allowance resets on 6 April.
What are the risks?
IFISAs are tax free but they are not risk free. The key risk with IFISA investing is that if the underlying loans default, you lose your capital as well as any interest that you expected to receive. Good IFISA managers will work hard to minimise this risk, but it cannot be eliminated entirely. This is why it is so important to do your own due diligence before choosing an IFISA manager and trusting them with your money.
IFISAs are not protected by the Financial Services Compensation Scheme (FSCS) which means that in the event of a platform failure, you may not be able to recoup any money lost. For this reason, it is important to ensure that you can afford any losses associated with IFISA investing and diversify your portfolio so that you are not completely reliant on one type of ISA investment.
Why invest in an IFISA now
The ISA landscape is changing. Next year, the Cash ISA allowance will fall, reflecting a government aim to encourage more UK taxpayers to invest rather than save. Meanwhile, macro-economic and geo-political risks are primed to wreak havoc with the stock markets, sending nervous investors in search of new homes for their funds.
This means that there is likely to be an influx of new ISA investors hitting the market next year who are considering IFISAs for the first time rather than Cash ISAs or Stocks and Shares ISAs. The current tax year presents a great opportunity to get ahead of the rush and get to grips with the IFISA market so that you can maximise your tax-free allowance and make the best financial decisions with your money.
| Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more. |