Peer-to-peer lending sites: MSE guide discussion

takesyourchances

Fatbritabroad wrote: »

I only put a small amount in each loan so i think in total i foreman i have about 500 quid. Im pretty Cautious with p2p. Ive just added about 500 extra which is pending in the portfolio loan just to get it in before the tax year so i have a bit of spare cash in their for next year. Part of the reason to just open a second p2p isa in the new tax year is so im less tempted to put more money in lol. At 14% and with amortiisng loans theyll be enough to just keep reinvesting in abl Lending works looks lower risk but with a decent interest so thats perfect for another few thousand

How much have you got overall in Ablrate? If you have £5000 etc £500 overall in Foremans loans be 10% to one borrower in that platform. That kinda thing needs considered too I think.

Lending Works be a good choice I think for you in addition for some added protection layers and a decent rate for hands off auto investing.

Plenty of payments to recycle with Ablrate's rates and amortiisng loans which is excellent I think. At the moment this is what I am doing, my overall P2P is in and around 15K give or take, I am rebalancing between platforms really at the moment and waiting on outcomes of Collateral and MT defaults. .

I am ok maintaining this 15K level for now in P2P against my overall portfolio of S&S and cash etc, at the moment I am raising my cash a little too as I drained it down a bit last year. I have reduced down a couple of thousand in P2P over to stocks and shares and will recycle payments and interest for now.

Fatbritabroad

takesyourchances wrote: »

How much have you got overall in Ablrate? If you have £5000 etc £500 overall in Foremans loans be 10% to one borrower in that platform. That kinda thing needs considered too I think.

Lending Works be a good choice I think for you in addition for some added protection layers and a decent rate for hands off auto investing.

Plenty of payments to recycle with Ablrate's rates and amortiisng loans which is excellent I think. At the moment this is what I am doing, my overall P2P is in and around 15K give or take, I am rebalancing between platforms really at the moment and waiting on outcomes of Collateral and MT defaults. .

I am ok maintaining this 15K level for now in P2P against my overall portfolio of S&S and cash etc, at the moment I am raising my cash a little too as I drained it down a bit last year. I have reduced down a couple of thousand in P2P over to stocks and shares and will recycle payments and interest for now.

£4653.18

Yes its more than id ideally like in one loan but p2p is 10% of my non pension non cash investments so it wont materially affect anything if i do lose it (though obviously i wouldn't be delighted lol) and i wanted to get invested. I only started last year. Ive made over 233 in interest so the worst id lose assuming one company goes down is a couple of hundred quid. Plus its amortised so im comfortable taking the risk

Most of my other investments are 50 to 100 quid

Ill be using some if my cash in lending works but will still have 10k in cash and again ill start building this back up again once invested. I just wanted to get a decent amount in some higher rate investments as im looking to use at least some of this to make a big dent in my mortgage once my ten year fix comes up in ten years time

takesyourchances

Fatbritabroad wrote: »

£4653.18

Yes its more than id ideally like in one loan but p2p is 10% of my non pension non cash investments so it wont materially affect anything if i do lose it (though obviously i wouldn't be delighted lol) and i wanted to get invested. I only started last year. Ive made over 233 in interest so the worst id lose assuming one company goes down is a couple of hundred quid. Plus its amortised so im comfortable taking the risk

Most of my other investments are 50 to 100 quid

Ill be using some if my cash in lending works but will still have 10k in cash and again ill start building this back up again once invested. I just wanted to get a decent amount in some higher rate investments as im looking to use at least some of this to make a big dent in my mortgage once my ten year fix comes up in ten years time

I have around £5500 in Ablrate at the moment, I understand Ablrate loans can be more limited in the amount of them so to get invested it can often be a little heavier in certain loans. It does help the amortised loans. I thought I would hold back as the next loan is a new borrower and see how that loan is. I am also going to try to limit being over exposed to one borrower going forward.

At the moment my interest paid is at £320 in Ablrate and I only started last year with them.

Kinda like you I put cash in last year to get investments up, the new money has slowed as I said and building some cash back up so understand what you mean. I am comfortable too at this overall percentage, but would like to see some of my P2P problems start to resolve too in time and in the meantime try and work things from what I have learnt being invested overall and experiences and from others too

takesyourchances

It is good to see some Moneything movement on Prestbury in their update with an expected 90-95% recovery from the sale. I think it would be a very decent recovery considering. I don't have that much in the loan compared to others, but it would be a return and movement of some defaults which is important.

Hopefully this goes through as planned and it would be a start.

economic

takesyourchances wrote: »

It is good to see some Moneything movement on Prestbury in their update with an expected 90-95% recovery from the sale. I think it would be a very decent recovery considering. I don't have that much in the loan compared to others, but it would be a return and movement of some defaults which is important.

Hopefully this goes through as planned and it would be a start.

Does the 90-95% recovery include the interest accrued?

Good to see finally some closure soon on this. Its my only loan with MT and as soon as i have got the cash i am closing my account.

TheShape

economic wrote: »

Does the 90-95% recovery include the interest accrued?

Good to see finally some closure soon on this. Its my only loan with MT and as soon as i have got the cash i am closing my account.

90-95% capital recovery only. The final amount dependent on legal and administrative costs.

I'm a long way from exiting MT but £1.8m returned to investors will hopefully feed into the secondary market and move me more swiftly towards an exit. Still in two other defaults though and I expect they won't return as high a percentage of capital.

taylornj

economic wrote: »

Does the 90-95% recovery include the interest accrued?

Good to see finally some closure soon on this. Its my only loan with MT and as soon as i have got the cash i am closing my account.

It's just the 90-95% capital that's recovered, there is nothing to pay accrued interest.

For me on this loan

((capital * 90% + interest paid)/capital)^(1/1.5) = 101.36%

So assuming no issues etc would be slightly ahead.

MT are looking at ways to recover more.

We will continue to explore other avenues to attempt to recover the shortfall.

takesyourchances

TheShape wrote: »

90-95% capital recovery only. The final amount dependent on legal and administrative costs.

I'm a long way from exiting MT but £1.8m returned to investors will hopefully feed into the secondary market and move me more swiftly towards an exit. Still in two other defaults though and I expect they won't return as high a percentage of capital.

I have sold down MT best I can so far, rest is for sale and waiting to run down. Still at £2300, I will still be at over £600 of that in defaults even with this recovery at say 90%, But it is a start, one point it was my highest holding and it peaked over £5000.

Hopefully the secondary market moves if some more money is returned otherwise will just wait it out. I am withdrawing any money that comes in at the moment.

Are you still looking to reduce fully out of P2P?

I am trying to make things more simple with what I am prepared to keep in P2P. To run MT down would be one of them and would put some returned over to Lending Works etc.

economic

I am sticking with LW at 10k and ABL at 4k invested.

Zopa, Ratesetter, Lendy, funding circle, assetz i am letting run down and removing my cash.

Eventually will only have 14k in P2P - which is less then 3% of my liquid net worth. Prefer not to have more simply because i don't like any other platform.

takesyourchances

economic wrote: »

I am sticking with LW at 10k and ABL at 4k invested.

Zopa, Ratesetter, Lendy, funding circle, assetz i am letting run down and removing my cash.

Eventually will only have 14k in P2P - which is less then 3% of my liquid net worth. Prefer not to have more simply because i don't like any other platform.

I am trying to get some returned funds from MT etc into LW while it is 6%. I got out of all those accounts you are letting run down, was never with Lendy.

My P2P focus will also be LW and Ablrate, I am testing out Unbolted and Growth Street still to see how I feel with those, early days but they are shorter term accounts.

If I can get MT run down and ever get anything from Collateral I would feed a fair bit of returned funds into Lending Works from those. Ablrate just re-investing still at the moment and see how the other two I am testing out fair. 14-15k hopefully working I would be ok. At least a level of control is back and I am not lumping in every week.

3% of your liquid funds is not cause to worry about overall for you