Peer to peer lending for newbies

Fatbritabroad · 12 March 2017 at 6:22AM

Is it best to stick to something like zopa or rate-setting or funding circle as an initial foray into this? Would just like a decent interest rate and to learn a bit more about this. I keep seeing able rite mentioned and assets capital but seen conflicting posts about this being good for newbies and saying it's a lot more complicated (I've had a look at assets capitals website doesn't seem that complicated) . So would just like a second opinion.

I was just going to go for rate-setter but the interest rate is pathetic although if there's still the welcome bonus hats probably worth 1k for 12 months

I want an account that I can just stick 1 to 3 k in spread across multiple loans for some protection and happy to tie up for up to 5 years if necessary.

Carolinemjs · 12 March 2017 at 7:07AM

I'm new to peer to peer too. I went with Ratesetter with £1000 for a year and got 3.1% plus the £100 bonus which is paid at the end of term, which gives a decent rate at the end of about 13%.
Meanwhile I'm trying to learn more.

fun4everyone · 12 March 2017 at 8:20AM

There is a good thread here http://forums.moneysavingexpert.com/showthread.php?t=4313323. Probably best to skip to the more recent posts but do have a read, jamesd and masonic for two provide some good advice.

Personally I use p2p a lot. Once you have filled current accounts/regular savers it is an option, although it can be confusing. Research your potential platforms, they are all very different. I find some hard to trust and will not put money anywhere I am not comfortable with. There have been issues abroad in the past and I have no doubt something will go belly up in some way here eventually. P2P independent forum is a good resource to discuss platforms.

If Ratesetter still do the introduction offer of £100 for keeping £1000 there for a year that is an ideal place to start, personally I did that but do not use them for more. You want to diversify. Spread your money amongst many different loans on many different platforms in many different sectors (personal, business, secured on property, secured on valuables etc). Be aware of the risks you are taking and make sure you are getting an appropriate rate on your cash. If you dedicate some time to it you will make it work and hopefully get some great returns.

StarShapedPeg · 12 March 2017 at 8:38AM

Also foraged into Ratesetter with a grand. Getting 3.9% on the rolling market recently but had to wait for that. The website is easy and instinctive to use.
Recent changes to the t&cs and the provision fund coverage drop spooked some I think.
Zopa and ratesetter are the primary ones but there are loads of other platforms.
Have a read of this: http://p2pindependentforum.com
Good luck.

bigadaj · 12 March 2017 at 1:30PM

To me it's not worth Zopa or Ratesetter, apart from teh bonus at the latter, as the rates don't reflect the risk.

I've just topped using Savingstream, and utilise money thing and Ablrate, which are secured and generally offer around 1% a month. Still risk but very different to unsecured lending and the ability to review at least some information on the available loans.

Fatbritabroad · 12 March 2017 at 3:46PM

Thanks What made you stop using savingstream out of interest?

masonic · 12 March 2017 at 4:02PM

Fatbritabroad wrote: »

Thanks What made you stop using savingstream out of interest?

See recent discussion from here onwards.

Fatbritabroad · 12 March 2017 at 4:05PM

Thanks very much

Fatbritabroad · 12 March 2017 at 7:34PM

Follow up question is there any of the ones authorised for the ifisa that people would recommend. Been waiting for ages for the main players to be authorised. I'm a higher rate tax payer so I think I'm reasonably close to my limit though some are in partners name or joint so I need to work it out

masonic · 12 March 2017 at 7:52PM

Fatbritabroad wrote: »

Follow up question is there any of the ones authorised for the ifisa that people would recommend. Been waiting for ages for the main players to be authorised. I'm a higher rate tax payer so I think I'm reasonably close to my limit though some are in partners name or joint so I need to work it out

I would say no, not yet. Use a flexible cash ISA to preserve your allowance if you need to. The current batch of providers nearing completion does include some attractive options, so hopefully it will not be too much longer.

Fatbritabroad · 12 March 2017 at 8:00PM

Thanks masonic much appreciated

Peer to peer lending for newbies

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