Frankly speaking, I was a bit surprised by Mintos’ accouncement that from now on non-bank car loan lender Mogo offers loans in Pound Sterling. The reason for my surprise is the timing for this move. On twino and on some other European p2p marketplaces GBP loans are already offered for some months now. Given the UK’s history with p2p and the general openness of its investors I had anticipated this move much sooner (or Mintos were reluctant because of Brexit or so)… Whatever, this presents an opportunity for UK investors (and all who like to invest in GBP equally) to invest in high yielding car loans, without currency risk.
What to expect?
Mogo offers Polish car loans with a duration of 6 to 48 months with yields from 8.5 to 13 percent. The loans are equipped with a buyback freature which means that if a loan is overdue for more then 60 days, the loan will be bought back and the investors will receive all outstanding capital plus accrued interest. I expect that once the demand is there other regions and loan originators will follow to issue loans in GBP.
How to add GBP?
Mintos has an UK bank account with own sort code and account number with transferwise. You can therefor just make a local ebanking wirement which should arrive in minutes. The other possibility is to exchange foreign funds directly at Mintos.
Who is Mogo?
Mogo is a profitable car loan lender from the baltics which operates now all over Europe. Their loans have a low default rate of about 2 percent (according to Mogo). One interesting fact is, that Mogo shares the same adress with Mintos in Riga, Latvia. They are not listed as a related party according to IAS 24, but I guess they are related to some extent. I have made this suggestion with my last post, and Mintos so far has not confirmed or objected ties.
If you want to join Mintos now, use this link for registration (link leads you to Mintos.com and then you register) as you will get 1% cashback on your average investment over the first 90 days. The bonus shall be paid every 30 days directly to your investment account. I have put together lots of post on Mintos during the last months, you can read them from here.