Share My Loan

Share My Loan: peer-to-peer joint loan platform

Share My Loan is a UK-based peer-to-peer lending platform that focuses on joint loans. In this model, the borrower has a second signatory — a family member, friend or colleague — who shares responsibility for repayment jointly and severally. The platform connects borrowers and lenders and does not charge upfront fees.

Joint loans for borrowers

The platform allows you to apply for loans of up to £12,500 with a maximum term of five years and the involvement of a joint borrower. The advertised representative rate is 48.9% APR fixed. The site shows a representative example: £4,000 over 36 months, with a monthly payment of £193.56; the interest is 17% per year fixed and the service fee is 23.48% per year fixed, with a total amount repayable of £6,968.16.

The application process is completed online and, according to the platform, takes about five minutes. Once approved, the money is deposited into the second borrower's account, unless otherwise agreed. The company states that it does not apply early repayment penalties and that disbursement may occur the same day depending on the circumstances.

Requirements to apply for a loan

• Be a UK resident or have the right to reside in the country throughout the loan term.
• Be employed, self-employed, receiving a pension or certain benefits.
• Be at least 18 years old and no older than 75.
• Have a joint borrower (not required to submit the application, but required before approval).
• Not be in an IVA (individual voluntary arrangement), a debt management plan or have been declared bankrupt.

The joint borrower must have a good credit history, be between 18 and 75 years old, understand their responsibilities and agree to be jointly and severally liable for the loan. The platform warns that defaults can affect both borrowers' credit scores and that credit histories are linked.

Investing for lenders

Share My Loan allows lenders to fund loans to selected borrowers who have a joint guarantor. The minimum investment is £10,000 and the term is five years, with an expected return of between 8% and 10%. The platform offers two products: an income product, with 10% monthly interest and monthly capital repayment, and a term product, with 10% monthly interest and capital repayment at the end of the term. Both have a three-year term.

The company reminds that capital is at risk and that these investments are not covered by the Financial Services Compensation Scheme (FSCS). Returns are not guaranteed and depend on borrowers and their guarantors making payments on time and in full. The platform notes that, as of 31 January 2016, its default rate was less than 1%, with an expected rate of 4.2%.

Regulatory warnings

The Financial Conduct Authority (FCA) considers this type of investment high risk. Share My Loan warns that peer-to-peer loans may be made to borrowers who cannot access traditional banking, with a higher risk of default, and that advertised returns are not guaranteed. The platform stresses that investors could lose all their capital and that recovering money may not be quick, as loans last several years and the secondary market does not guarantee early sale.

The company recommends not concentrating investment in a single product or business and not allocating more than 10% of your money to high-risk investments. It also reminds that the FSCS does not cover investments in P2P loans and that the Financial Ombudsman Service (FOS) does not protect against poor investment performance, although it can handle complaints against FCA-regulated platforms.

Customer service and application process

The platform offers a personal service, with telephone contact to assess the application and check that repayments are affordable, even in cases of poor credit history. The process consists of four steps: online application, finding a joint borrower, assessment call and disbursement. Share My Loan does not charge upfront fees and allows early repayment without penalty.