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  • FIRST POST
    • Carmk2008
    • By Carmk2008 18th Mar 17, 1:22 PM
    • 147Posts
    • 47Thanks
    Carmk2008
    P2p
    • #1
    • 18th Mar 17, 1:22 PM
    P2p 18th Mar 17 at 1:22 PM
    What's the least that you can invest into p2p I was thinking of doing £40 a month to test the water if possible the aim is to build up an investment portfolio for the next 25-30 years.

    Currently we have £80 pm going into first direct regular savers and £50 pm going into fidelity. We also have a buy to let bringing in £450pcm we are also hoping to buy another one in June if the figures stack up. I pay into the works pension but only the minimum. We also have 50% equity in the house we stay in.

    Any links to p2p would be much appreciated and info to which platform would be best to invest in, I don't mind going for high risk for better returns. Thanks in advance.
Page 1
    • ozaz
    • By ozaz 18th Mar 17, 1:47 PM
    • 50 Posts
    • 13 Thanks
    ozaz
    • #2
    • 18th Mar 17, 1:47 PM
    • #2
    • 18th Mar 17, 1:47 PM
    I invest across 5 P2P lenders (Zopa, Ratesetter, Funding Circle, Assetz Capital, Saving Stream). I'm not sure what the minimum investment terms are for all of them but at least one of them (Assetz Capital) has a minimum investment amount of only £1.

    I found these web pages and websites helpful when first looking into P2P

    General Intros
    http://www.moneysavingexpert.com/savings/peer-to-peer-lending
    http://www.telegraph.co.uk/personal-banking/savings/peer-to-peer-lending-everything-you-need-to-know-about-the-leadi/

    In-depth reviews of several lenders
    http://www.financialthing.com/

    Who offers IFISAs?
    https://p2pblog.co.uk/innovative-finance-isa/

    Who offers cashback bonus on signup?
    (there are also MSE forum threads with willing referrers)
    https://p2pblog.co.uk/p2p-cashback-offers/
    Last edited by ozaz; 18-03-2017 at 1:50 PM.
    • JohnRo
    • By JohnRo 18th Mar 17, 2:35 PM
    • 2,367 Posts
    • 2,094 Thanks
    JohnRo
    • #3
    • 18th Mar 17, 2:35 PM
    • #3
    • 18th Mar 17, 2:35 PM
    http://p2pindependentforum.com/
    'We can't solve problems by using the same kind of thinking we used when we created them.' ― Albert Einstein
    'Facts do not cease to exist because they are ignored.' ― Aldous Huxley
    • TheShape
    • By TheShape 18th Mar 17, 5:35 PM
    • 988 Posts
    • 736 Thanks
    TheShape
    • #4
    • 18th Mar 17, 5:35 PM
    • #4
    • 18th Mar 17, 5:35 PM
    Currently we have £80 pm going into first direct regular savers and £50 pm going into fidelity. We also have a buy to let bringing in £450pcm we are also hoping to buy another one in June if the figures stack up. I pay into the works pension but only the minimum. We also have 50% equity in the house we stay in.
    Originally posted by Carmk2008
    You can pay £300 pm into a First Direct Regular Saver @ 5% interest fully protected by the FSCS. If you're thinking of saving/investing a greater amount each month I would question why you are not maximising an account with a guaranteed rate of return with guaranteed return of capital (assuming you have less than £85k with the HSBC Banking group (if you have, why only £80pm into the regular saver?).

    Can you pay more into your works pension, will your employer match the additional contributions? Are you a higher rate taxpayer who would benefit from the tax relief on pension contributions?

    Have you got savings/an emergency fund equivalent to at least 3-6 mths outgoings (perhaps more as you have a BTL)? If you have, you could probably already be making greater use of your First Direct regular saver.

    If you do not already have the emergency fund and are using guaranteed interest/capital protected savings options I would not be recommending putting money into p2p. I say this as someone who has been investing in p2p platforms, albeit only for about a month so far.
    • ozaz
    • By ozaz 18th Mar 17, 5:38 PM
    • 50 Posts
    • 13 Thanks
    ozaz
    • #5
    • 18th Mar 17, 5:38 PM
    • #5
    • 18th Mar 17, 5:38 PM
    You can pay £300 pm into a First Direct Regular Saver @ 5% interest fully protected by the FSCS. If you're thinking of saving/investing a greater amount each month I would question why you are not maximising an account with a guaranteed rate of return with guaranteed return of capital (assuming you have less than £85k with the HSBC Banking group (if you have, why only £80pm into the regular saver?).
    Originally posted by TheShape
    Good point Eagle Eye!
    • Fatbritabroad
    • By Fatbritabroad 18th Mar 17, 5:39 PM
    • 160 Posts
    • 67 Thanks
    Fatbritabroad
    • #6
    • 18th Mar 17, 5:39 PM
    • #6
    • 18th Mar 17, 5:39 PM
    I also wouldn't touch saving stream atm. Someone will join doubt post a link shortly
    • novice_1
    • By novice_1 18th Mar 17, 7:29 PM
    • 11 Posts
    • 4 Thanks
    novice_1
    • #7
    • 18th Mar 17, 7:29 PM
    • #7
    • 18th Mar 17, 7:29 PM
    Saving Stream is not suitable for a £40 per month investment as the minimum is £100 per loan, though potentially you could try to bid £100 and resell the £60 straight away.

    If you are just putting a small amount in to experiment and learn, something like Assetz Capital could be a good introduction:

    1) They have lots of different types of investments (manual, automated) so trying them out would give you a feel for what you like and what type of site you might use long term
    2) You are not missing out on the opportunity to do a £1k/£2k minimum joining bonus later (Funding Circle, Zopa, RateSetter etc.)
    • masonic
    • By masonic 18th Mar 17, 7:40 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    • #8
    • 18th Mar 17, 7:40 PM
    • #8
    • 18th Mar 17, 7:40 PM
    Saving Stream is not suitable for a £40 per month investment as the minimum is £100 per loan, though potentially you could try to bid £100 and resell the £60 straight away.
    Originally posted by novice_1
    Eh? Since when? I regularly picked up low amounts (as little as £1) on the secondary market during the time I invested there.

    But I wouldn't touch SS with a bargepole at the moment.
    • Superscrooge
    • By Superscrooge 18th Mar 17, 8:01 PM
    • 848 Posts
    • 589 Thanks
    Superscrooge
    • #9
    • 18th Mar 17, 8:01 PM
    • #9
    • 18th Mar 17, 8:01 PM
    If you are prepared to invest £1,000 for 12 months with RateSetter they are offering a bonus of £100 which gives an effective interest rate of 14%. See below link for full details

    http://monevator.com/ratesetter-high-interest-offer/
    • novice_1
    • By novice_1 18th Mar 17, 8:09 PM
    • 11 Posts
    • 4 Thanks
    novice_1
    Eh? Since when? I regularly picked up low amounts (as little as £1) on the secondary market during the time I invested there.

    But I wouldn't touch SS with a bargepole at the moment.
    Originally posted by masonic
    I meant on the primary market, min pre-bid is £100. You are right on the secondary market.
    • masonic
    • By masonic 18th Mar 17, 9:29 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    I meant on the primary market, min pre-bid is £100. You are right on the secondary market.
    Originally posted by novice_1
    New investors would do well to spend most of their time purchasing on the secondary market initially. That's the way to quickly diversify across loans.
    • bigadaj
    • By bigadaj 18th Mar 17, 11:09 PM
    • 9,582 Posts
    • 6,097 Thanks
    bigadaj
    New investors would do well to spend most of their time purchasing on the secondary market initially. That's the way to quickly diversify across loans.
    Originally posted by masonic
    Though if they choose to do so being very careful about what they pick up.

    One rule of thumb some people follow is dropping any loans with less than 90 gays or so to term as the potential for a default increases.

    It's also obviously possible to buy defaulted loans which is a hazard a newbie investor may not recognise.
    • veryintrigued
    • By veryintrigued 19th Mar 17, 6:24 AM
    • 2,000 Posts
    • 1,242 Thanks
    veryintrigued
    ....is dropping any loans with less than 90 gays or so.....
    Originally posted by bigadaj
    That seems a very unique way to filter risk.
    • masonic
    • By masonic 19th Mar 17, 6:41 AM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Though if they choose to do so being very careful about what they pick up.

    One rule of thumb some people follow is dropping any loans with less than 90 gays or so to term as the potential for a default increases.

    It's also obviously possible to buy defaulted loans which is a hazard a newbie investor may not recognise.
    Originally posted by bigadaj
    Yes, best to steer clear completely given the volume of loans where interest is not being serviced by the borrower. Much better choices exist for newbies, such as MoneyThing (although there is not much available there at the moment).
    • Carmk2008
    • By Carmk2008 19th Mar 17, 8:48 AM
    • 147 Posts
    • 47 Thanks
    Carmk2008
    You can pay £300 pm into a First Direct Regular Saver @ 5% interest fully protected by the FSCS. If you're thinking of saving/investing a greater amount each month I would question why you are not maximising an account with a guaranteed rate of return with guaranteed return of capital (assuming you have less than £85k with the HSBC Banking group (if you have, why only £80pm into the regular saver?).

    Can you pay more into your works pension, will your employer match the additional contributions? Are you a higher rate taxpayer who would benefit from the tax relief on pension contributions?

    Have you got savings/an emergency fund equivalent to at least 3-6 mths outgoings (perhaps more as you have a BTL)? If you have, you could probably already be making greater use of your First Direct regular saver.

    If you do not already have the emergency fund and are using guaranteed interest/capital protected savings options I would not be recommending putting money into p2p. I say this as someone who has been investing in p2p platforms, albeit only for about a month so far.
    Originally posted by TheShape
    I know I can put £300 in pm but I don't have it the moment as we are in the middle of a refurb at the moment, this was merely to test the water and to diversify a bit and hopefully get a better return than what first direct returns. As for the pension I am nearly 40 and only started paying into one when the government launched the work place one, I suppose I could pay more as it's free money.
    • bigadaj
    • By bigadaj 19th Mar 17, 8:56 AM
    • 9,582 Posts
    • 6,097 Thanks
    bigadaj
    That seems a very unique way to filter risk.
    Originally posted by veryintrigued
    I'm not totally sure but believe it's something to do with volatility of the pink pound.
    • ozaz
    • By ozaz 19th Mar 17, 9:13 AM
    • 50 Posts
    • 13 Thanks
    ozaz
    It's also obviously possible to buy defaulted loans which is a hazard a newbie investor may not recognise.
    Originally posted by bigadaj
    By this do you mean it's possible to buy loans that have not been paid but fall within Saving Stream's tolerance period (180 days past initial due date) which Saving Stream does not yet formally class as defaulted?

    As far as I can tell, once Saving Stream formally classes a loan as defaulted it's no longer possible to buy it.

    Edit - My mistake. Forgot there was a Default loans section. At least they're not shown in the available loans section I suppose.
    Last edited by ozaz; 19-03-2017 at 9:23 AM. Reason: Correct mistake
    • Biggles
    • By Biggles 19th Mar 17, 9:17 AM
    • 7,361 Posts
    • 4,754 Thanks
    Biggles
    I meant on the primary market, min pre-bid is £100. You are right on the secondary market.
    Originally posted by novice_1
    No, the only limit (AFAIK) is on pre-funding pipeline loans. There's no limit on any live loan, primary or secondary.
    • elephantrosie
    • By elephantrosie 19th Mar 17, 12:44 PM
    • 340 Posts
    • 85 Thanks
    elephantrosie
    I invest across 5 P2P lenders (Zopa, Ratesetter, Funding Circle, Assetz Capital, Saving Stream). I'm not sure what the minimum investment terms are for all of them but at least one of them (Assetz Capital) has a minimum investment amount of only £1.

    I found these web pages and websites helpful when first looking into P2P

    General Intros
    http://www.moneysavingexpert.com/savings/peer-to-peer-lending
    http://www.telegraph.co.uk/personal-banking/savings/peer-to-peer-lending-everything-you-need-to-know-about-the-leadi/

    In-depth reviews of several lenders
    http://www.financialthing.com/

    Who offers IFISAs?
    https://p2pblog.co.uk/innovative-finance-isa/

    Who offers cashback bonus on signup?
    (there are also MSE forum threads with willing referrers)
    https://p2pblog.co.uk/p2p-cashback-offers/
    Originally posted by ozaz
    Thanks. read a few of the links and were really helpful.
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