Ratesetter

Jellifer1

Hi, anyone wanting an answer to P2P queries - I had a bond which matured in April this year and wanted a decent return on my money. Looked at Castle Trust, but felt that it wasn't right for me. I am happy to take a bit of a risk and decided to try P2P. Impressed with Ratesetter's webpage, tried a very tiny sum until my bond did mature and am really happy with their helpful service, good return on my investment - already made around £250 profit (over 4% pa, at current rate). In fact, when my mum-in-law also had an investment coming to maturity, I recommended Ratesetter to her; she takes a small monthly income from her return and is still about 3% pa up. We're both more than happy with the whole deal and at least with the provision fund, our capital is unlikely to be lost; of course it's riskier than a bank account, but consider current interest rates and long-term inflation and what have you really got to lose?

Jellifer1

Just as when you set up a DD, the borrower normally has a choice of repayment date. Personally I'm happy to let the borrower pay back on an agreed date, even if it is a day or two outside the calendar month (don't forget, the due day may well be over a w/e; often the borrower will repay earlier, but even if it's a day or two over the date, wouldn't you rather know that you will be paid and I think that Ratesetter allows for additional interest due to be added, although I've never been penny-pinching enough to check this!:)

N1AK

Jellifer1 wrote: »

of course it's riskier than a bank account, but consider current interest rates and long-term inflation and what have you really got to lose?

Just your money

I've got a fair bit with 3 p2p lenders, including Ratesetter, but it helps to remember that there's no guarantee scheme in place for money invested that way. If you 'need' the money then p2p isn't a smart place to put it.

edinburgher

Just your money

Indeed...

DiggerUK

It is only recently that I did some research on p2p. Since then I have found out that other MSE posters also did their homework. The date on this thread is testament to that.

My take on these 'face rippers' is that the self regulated finance industry's sharks from pre 2007 days have found a new bottle for their old wine.
All of the platforms offer the same thing, loan swaps in one form or another. Remind anybody of something they have heard before?

Yet there have been pages of wise after the fact posters since 2007, claiming to understand what caused the financial meltdown at that time, now saying what a fantastic opportunity p2p is, despite acknowledging the risk.
If these platforms were FSCS/FSA regulated, then they wouldn't exist. The rewards are nothing to shout about either..._

Eppinggas

Keep up. The FSA was abolished in 2013. RateSetter are regulated by the FCA. I have been researching this company for the last week or so and apart from the obvious (they are not FSCS regulated as they don't actually take deposits) - looks like a very solid business model and the traditional Banks should be looking over their shoulders.

dunstonh

Keep up. The FSA was abolished in 2013. RateSetter

Keep up. This thread has been dormant over a year.

RateSetter are regulated by the FCA.

Although it is very limited at the moment and the FCA are expected to make significant changes to the requirements. The consultation closed in September and outcomes are awaited. Consistent disclosure, risk warnings and financial solvency are all areas expected to be improved on.

looks like a very solid business model

You cant say that. As of yet, crowdfunding/P2P has not gone through a strong negative impact event and it is largely an unknown as to how this area will suffer when it happens.

the traditional Banks should be looking over their shoulders.

Not really. They offer FSCS protection on deposits with no investment risk. What you are looking at is risk based investment with no FSCS protection in a very lightly regulated area with few rules. Although regulation/rules are going to increase as will solvency requirements which will likely put an increased cost to the providers which in turn will reflect in the terms offered.

It is a different option to savings. Not to replace it but to sit along side it.

Rollinghome

Eppinggas wrote: »

looks like a very solid business model and the traditional Banks should be looking over their shoulders.

It's possible you know something that previously long-term lenders don't as if that's the case then it seems some might disagree with you. ( http://p2pindependentforum.com/thread/7038/rates-manipulated-worth?page=2 )

Do you mean the business model as it was, or as it is now. (http://p2pindependentforum.com/thread/6568/provision-fund-cash-anticipated-debts?page=6)

My own view would be that Ratesetter are effectively acting both as agents to lend out your money, and to provide loans to borrowers, and it might be some time until it's known how good they are at doing that and what will be the effect of potential conflicts of interest.

Zopa has decided to hedge it's bets, which is probably a good tactic for the rest of us: http://www.telegraph.co.uk/personal-banking/savings/peer-to-peer-giant-zopa-to-launch-digital-bank/

Trentenders

Building up a post count, to start spamming shortly? zzzzzz.....

ceedy

Is is possible to take a regular amount out to another bank account or ISA ?? from Ratesetter ?


ta,