Peer-to-peer lending sites: MSE guide discussion
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takesyourchances wrote: »That is £2500 sold out tonight on Funding Circle, I feel better selling out of this platform now to use the funds elsewhere and I have already bought some SM loans on Ablrate and added more to Moneything and Collateral while the FC funds come back to my bank acc.
I feel that my P2P is more tidy now as I did not like the random loan selections on FC and unsecured loans and have learnt from I opened that account I feel.
Everything sold really quick so happy with that
Question is whether you feel happy almost all your P2P investment is in property now and far less diversified ( as platforms that you mentioned have far fewer loans). How long have you been on FC for and what was your yearly yield?The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Question is whether you feel happy almost all your P2P investment is in property now and far less diversified ( as platforms that you mentioned have far fewer loans). How long have you been on FC for and what was your yearly yield?
I was in FC under a year with one default and a few others coming up with late payments, in interest was down as 7% a year with the default, would of dropped has more happened.
I felt I was lucky with one default with the amount I have read about and the autobid I was not so comfortable loans being selected blindly after learning more.
I still have ratesetter which I may keep still with my funds at 5%,
What I prefer is better quality loans with the other platforms and some of them shorter durations and to keep the funds flowing and be selecting them myself with reading the information and also the P2P forum. I felt with FC there was more problems waiting to happen and more warnings was appearing also with payments late for several months and flags appearing.0 -
How did you sell ones that were paying late - I believe loans in arrears become unsaleable. Why I am asking - I been on there the same as on all other platforms you mentioned for 5 months and trying to see what fits where.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
How did you sell ones that were paying late - I believe loans in arrears become unsaleable. Why I am asking - I been on there the same as on all other platforms you mentioned for 5 months and trying to see what fits where.
I got 2500 out which I am waiting to clear in my bank from FC and I have 74 I can't sell that's one default of 18.68 and the rest will be new flags of late payments. I'll just check and draw whatever if any I can but I got my bulk out so I'm happy.
With what I've learnt from opening that account i never would of picked many of those loans and for the return as the more experienced posters on here have pointed out there are better options out there for potential higher returns for the risk. So between all of this learning I'm more happy to spread that 2500 across the other 3 I've been investing in and building these platforms up more.
Hope that helps and this is what here is for 0 -
So 7% was after £74 which could be recovered? I am having fun hand picking loans there for now after initial investment with autobid. I suppose on any platform with let's say 10% interest rate if no more than 1 in 10 loans default irrecoverably one is not going to see loss other than opportunity cost..The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
So 7% was after £74 which could be recovered? I am having fun hand picking loans there for now after initial investment with autobid. I suppose on any platform with let's say 10% interest rate if no more than 1 in 10 loans default irrecoverably one is not going to see loss other than opportunity cost..
Yes the 7% is after one default of 18.68 the rest of the 74 is flagged but not in default so chance to get more back from this. If I don't I've not lost. The default was an A rated loan.
I prefer asset backed now at least it gives a better chance than unsecured and platforms that too are more selective of the loan quality they offer. Another interesting blog I read is financial thing and I see in a recent update the guy withdrew from FC and you can read his opinion on FC in his updated blog.
I will pick up some more on Ablrate sm tonight and work on these 3 platforms when fresh loans appear too.
I'll keep ratesetter for now as it's easy and my funds are 5% but won't add fresh money to it at the moment and review.
My plan is to work on continuing to spread across the 10% plus loans as I feel after reading posters here too also the risk taken needs higher returns.
So far defaults are low across those 3 platforms on FC I'm reading all sorts and more would of hit my rate below 7%.0 -
In this case I'm having difficulty in seeing how it can be anything other than negligence. Ownership is presumably properly registered at the Land Registry and basic checks of ownership of anything to be used as security or to back a guarantee should be basic routine work by the platforms as part of them making sure that their promotions meet the requirements. If they skip such basic checks they should expect to pay the cost.
Agree entirely, it couldn't be more basic.
Whether the generalist FCA rule on promotions being "clear fair and not misleading" is wide enough to cover this situation is open to interpretation. Funding Circle can point to its terms & conditions which say (my emphasis):
(note that it does not say that they will do Land Registry checks on the information provided by the borrower, or any other due diligence checks beyond the Experian report)1.3 Funding Circle gives each loan a risk band classification at the time a loan request is processed, which is based on information included in the borrower's application and the results of an online check made against records held by credit reference agencies.
Now, we all know nobody reads terms and conditions, and furthermore a firm cannot escape its obligations under the FCA's Conduct of Business Rules by saying in its terms & conditions that it doesn't have to comply with the FCA's Conduct of Business Rules.1.4 While Funding Circle adds value to the credit analysis as part of our loan application review and assessment processes, the provision of a risk band classification is intended to be informative only and an investor must form its own opinion regarding the creditworthiness of a borrower and undertake its own research, analysis and assessment of each borrower for each loan and, where appropriate, seek its own independent financial advice.
1.5 Save in certain specified circumstances, Funding Circle does not edit the information submitted or uploaded by borrowers which it then makes available to prospective investors via the Funding Circle platform and, therefore, we cannot guarantee its accuracy. Accordingly, we accept no responsibility or liability for the accuracy of the information provided by borrowers to prospective investors or the risk band classifications.
But equally the FCA's rule on financial promotions being "clear, fair and not misleading" is a deliberately broad rule and therefore open to interpretation. Is it clear that borrowers can't assume that the information given by the borrowers is true and must do their own due diligence? Abundantly, from FC's terms & conditions - it may be small print but it's very clear small print. Is it fair? Well, if you want 10% per annum returns you have to accept some risks. Is it misleading? Yes, but it was the borrower doing the misleading. If a fund manager makes misleading statements on its fact sheet then my complaint is against the fund manager, not Hargreaves Lansdown or Trustnet because I read the misleading promotion on their website. Funding Circle will argue that it is only acting as a conduit.0 -
HI
I have a help to buy ISA
if I do a P2P on let's say landbay
would I loose the help to buy ISA become void
as the help to buy ISA is for first time buyers only
does joining and investing in a P2P affect that ?0 -
It was FC's financial promotion to prospective lenders and FC is responsible for ensuring that those are clear fair and not misleading. The borrower may have tried to mislead FC but it wasn't the borrower's financial promotion.Malthusian wrote: »Is it misleading? Yes, but it was the borrower doing the misleading.... Funding Circle will argue that it is only acting as a conduit.
Well worth this one going to the FOS if that's what it takes.0 -
It will only matter if you become a full or partial owner of a property. P2P lending using property as security doesn't get you an ownership interest.if I do a P2P on let's say landbay
would I loose the help to buy ISA become void
as the help to buy ISA is for first time buyers only
does joining and investing in a P2P affect that ?0
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