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    • masonic
    • By masonic 19th Apr 17, 7:35 AM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    I do wonder if it will lead some to concentrate money into perhaps too few platforms as they might subscribe only to one/few IFISAs and not diversify especially if no ISA subscriptions from previous years are available for transfer.
    Originally posted by TheShape
    I think those that aren't really bothered about diversification across platforms will probably not have spread their money around much anyway, so this group will probably not find it too hard to maintain their spread within ISAs.

    For those who are using quite a few different platforms, it will be more of a problem, but with the slow rate IF ISAs are appearing, I wouldn't be surprised if many have made provisions to have previous year money available to split up.

    Where it is going to get troublesome is when platforms become less attractive or go through a dry spell where money cannot be reinvested. Since some IF ISAs (including the FS one) are not flexible, one has to either sit tight with cash drag, or transfer the cash to a rival platform's ISA or flexible cash ISA, which will be inconvenient for all concerned.
    • bowlhead99
    • By bowlhead99 19th Apr 17, 7:35 AM
    • 6,291 Posts
    • 11,094 Thanks
    bowlhead99
    James, do you have a link to the poll results?
    Originally posted by nxdmsandkaskdjaqd
    http://p2pindependentforum.com/thread/8441/which-p2p-platforms-use
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 20th Apr 17, 1:11 PM
    • 449 Posts
    • 42 Thanks
    nxdmsandkaskdjaqd
    I am still learning about P2P and have just opened accounts with Lendy and Moneything. One key difference I have already noticed between these 2 providers is that Lendy have some 50 loans available, but Moneything have none. Is there a specific reason for this stark difference?
    • masonic
    • By masonic 20th Apr 17, 6:11 PM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    I am still learning about P2P and have just opened accounts with Lendy and Moneything. One key difference I have already noticed between these 2 providers is that Lendy have some 50 loans available, but Moneything have none. Is there a specific reason for this stark difference?
    Originally posted by nxdmsandkaskdjaqd
    I think it's really a case of quantity vs quality. It would be worth having a read of the specific "SavingStream" thread to understand why there may be caveats around a number of those available loans at Lendy. There are a couple of new loans close to launching at Moneything, which tends to liven up the secondary market.
    • elephantrosie
    • By elephantrosie 20th Apr 17, 7:41 PM
    • 232 Posts
    • 62 Thanks
    elephantrosie
    which is riskier- shares or p2p?
    • masonic
    • By masonic 20th Apr 17, 8:42 PM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    which is riskier- shares or p2p?
    Originally posted by elephantrosie
    It depends on the shares and the P2P (and on your diversification). It also depends on what type of risks are significant to you.

    Broadly, if thinking about loss potential, I'd consider asset backed P2P to be medium risk, while typically S&S investments are higher risk, but there is a lot of variation within each asset class.
    Last edited by masonic; 20-04-2017 at 8:45 PM.
    • donerkebab
    • By donerkebab 21st Apr 17, 5:06 PM
    • 138 Posts
    • 12 Thanks
    donerkebab
    It's a shame that the ISA rules are so restrictive. I have a Lending Works IFISA (opened 16/17) and would like to open a FS IFISA and a Moneything IFISA as and when available. I might possibly wish to open others in the future.

    Funding them is not going to be straightforward as I'm going to need to plan for transfers of previous years Cash ISA money to fund them effectively. Even my previous years ISA money is actually in other accounts which will need returning to my flexible cash ISA prior to then being transferred out to the IFISAs. No more straightforward drip-feeding into multiple p2p platforms.

    This inconvenience is, of course, the price I (we) have to pay for receiving a significant tax saving on the interest.

    I do wonder if it will lead some to concentrate money into perhaps too few platforms as they might subscribe only to one/few IFISAs and not diversify especially if no ISA subscriptions from previous years are available for transfer.
    Originally posted by TheShape
    I am interesting in transferring previous ISAs in - of the IFISAs available are
    a) none protected by FCFS at all?
    b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?
    In the words of Jerry Maguire "SHOW ME THE MONEY"
    • mr._prude
    • By mr._prude 21st Apr 17, 5:39 PM
    • 92 Posts
    • 10 Thanks
    mr._prude
    Say you opened an IF ISA with small amount but did not invest in any loans as u realised the platform was keak. Can you close it down and open another IF ISA in the same year with a different provider?
    • TheShape
    • By TheShape 21st Apr 17, 5:39 PM
    • 856 Posts
    • 599 Thanks
    TheShape
    I am interesting in transferring previous ISAs in - of the IFISAs available are
    a) none protected by FCFS at all?
    b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?
    Originally posted by donerkebab
    I haven't checked every IFISA but I'm fairly certain that no p2p IFISA is protected by the FSCS, your capital is at risk.

    The Funding secure front page contradicts itself by stating that they offer up to 16% and lower on the page that they may offer up to 15%. There are currently 3 loans available on the Secondary Market at 15% (effective rate may vary dependent on what you pay for the loan). There are some at 14%, most loan rates are set at 12 or 13% but also as low as 10%.

    Edit: FS do offer bonus rates for some loans dependent on the level of investment so the rate offered + bonus can total 16%.
    Last edited by TheShape; 21-04-2017 at 5:59 PM. Reason: Add detail/clarify
    • masonic
    • By masonic 21st Apr 17, 5:45 PM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    Say you opened an IF ISA with small amount but did not invest in any loans as u realised the platform was keak. Can you close it down and open another IF ISA in the same year with a different provider?
    Originally posted by mr._prude
    You could transfer your IF ISA to another provider and continue to pay into it. You could not close it and then pay into another elsewhere in the same tax year.
    • masonic
    • By masonic 21st Apr 17, 5:48 PM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    I am interesting in transferring previous ISAs in - of the IFISAs available are
    a) none protected by FCFS at all?
    Originally posted by donerkebab
    Cash deposits may be protected by the FSCS up to 85,000 - depending on how the platform holds these. Investments have no FSCS protection as P2P investments do not qualify for protection.

    b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?
    You can get up to 16%. A minority of loans have higher rates and some have bonuses for large investments.
    • mr._prude
    • By mr._prude 21st Apr 17, 5:58 PM
    • 92 Posts
    • 10 Thanks
    mr._prude
    You could transfer your IF ISA to another provider and continue to pay into it. You could not close it and then pay into another elsewhere in the same tax year.
    Originally posted by masonic
    Thanks, did not know you could do that.
    Are ISA not covered by a 14 day cooling of peroid?
    • masonic
    • By masonic 21st Apr 17, 6:06 PM
    • 9,126 Posts
    • 6,261 Thanks
    masonic
    Thanks, did not know you could do that.
    Are ISA not covered by a 14 day cooling of peroid?
    Originally posted by mr._prude
    There may be a cooling off period. You'd need to check the T&Cs and follow the required process. IIRC, FundingSecure has one. I can't comment on others.
    • munnymug
    • By munnymug 21st Apr 17, 7:42 PM
    • 1 Posts
    • 1 Thanks
    munnymug
    I am still learning about P2P and have just opened accounts with Lendy and Moneything. One key difference I have already noticed between these 2 providers is that Lendy have some 50 loans available, but Moneything have none. Is there a specific reason for this stark difference?
    Originally posted by nxdmsandkaskdjaqd
    There are many reasons for this. Lendy historically has also had a very liquid secondary market, with a similar dearth of loans available, similar to that of Moneything today. Only recently has this changed, and it may just be a temporary situation. However, Lendy has recently been undergoing changes, and also has far more loans on their books, and it could well be that the dynamics of their secondary market is changing. Moneything is presently very popular, has had no defaults so far, and is a much smaller platform. Both platforms are continuously evolving, and only time will tell whether they diverge or converge in platform dynamics.
    • elephantrosie
    • By elephantrosie 21st Apr 17, 10:50 PM
    • 232 Posts
    • 62 Thanks
    elephantrosie
    You could transfer your IF ISA to another provider and continue to pay into it. You could not close it and then pay into another elsewhere in the same tax year.
    Originally posted by masonic
    if i transfer a small percentage of my cash ISA from previous years to s+s ISA, do I still have the full 20k pounds allowance for this year ISA?
  • jamesd
    Say you opened an IF ISA with small amount but did not invest in any loans as u realised the platform was keak. Can you close it down and open another IF ISA in the same year with a different provider?
    Originally posted by mr._prude
    Yes.

    Except for lifetime, help to buy and junior ISAs you can open as many ISAs as you like each year. There is one substantial restriction: money that you have newly subscribed (paid in for the first time) during the tax year can only be held with one provider of each type of ISA (help to buy counts as a cash ISA for this rule), but in any number of different accounts.

    With the occasional exception that doesn't apply to this discussion, if you pay money in then withdraw it, it still counts against your ISA allowance for the year. So it would be counted a second time if you just withdrew and then paid the money in somewhere else. You are allowed to open another one. To get around that you can open an ISA with the new place and ask them to transfer the money over. Then it won't count a second time. The new one doesn't have to be IF, it can be cash or stocks and shares instead if you like. Or some to each if you wanted to do that.

    Just subscribe the minimum amount so that even if you decide to just withdraw it, the effect on the allowance doesn't matter much.
    Last edited by jamesd; 22-04-2017 at 12:12 AM.
  • jamesd
    I am interesting in transferring previous ISAs in - of the IFISAs available are
    a) none protected by FCFS at all?
    Originally posted by donerkebab
    Not quite none at all, but close.

    Uninvested money is normally held on deposit in client bank accounts. Those bank accounts normally do have FSCS protection. So this bit probably applies to them all.

    Beyond that, the FSCS doesn't cover P2P at all, whoever the P2P provider is. That means no protection if loans go bad and no protection if an employee or owner of a P2P platform steals your money or just gets tricked by a criminal into giving it to them. And none even if the platform tells you outright lies about how your money is invested. The platform ends up liable in that case but once it runs out of money to pay all of the claims the FSCS doesn't step in to pay the rest.

    One exception: if a regulated adviser gave you regulated advice to make those investments and they were inappropriate for you, the FSCS cover of the adviser applies and provides you some protection. In this case if the adviser goes bankrupt the FSCS will take over the paying of the claims if a liability insurer isn't already handling it.

    IF ISAs aren't limited to just P2P and there are some nuances in cover for the other permitted things as well, but still broadly no cover.
  • jamesd
    if i transfer a small percentage of my cash ISA from previous years to s+s ISA, do I still have the full 20k pounds allowance for this year ISA?
    Originally posted by elephantrosie
    Yes, no effect. You can transfer as much as you like, as often as you like, between as many places as you like and it has no effect.
    • badger09
    • By badger09 22nd Apr 17, 4:54 PM
    • 4,842 Posts
    • 4,022 Thanks
    badger09
    Yes, no effect. You can transfer as much as you like, as often as you like, between as many places as you like and it has no effect.
    Originally posted by jamesd
    Providing you use the new ISA provider's transfer process
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 23rd Apr 17, 10:34 AM
    • 449 Posts
    • 42 Thanks
    nxdmsandkaskdjaqd
    In general, is there any difference in the risk profile between long and short term loans?
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