Peer-to-peer lending sites: MSE guide discussion

4amSols

Hello I'm after a little advice about where to get a pier 2 pier loan.
My position is I have a house I'm selling for £345,000 with a mortgage of £145,000 so 58% equity in the property.
I need a loan of 10-20k that I can have secured on my property. Currently my credit rating is poor so passing normal credit checks is hard. Someone looking at the equity would see 200k of spare equity. The sale of my house is progressing well and should be completed in 3-6 months however house sales can always have delays.
Does anyone have a suggestion about where to find some finance that can be secured on my house and will look at this situation rather that my poor credit rating?
Perhaps a private investor outside of the p2p system that would like to make a 10% p.a return
Many thanks

agent69

MrOverheads wrote: »

P*W*C* yes has defaulted (payment due 7th Feb) but action was begun on 18th Feb and the loan parts will be assigned to debt recovery on 4th March.
CBL has been downgraded to a D risk because 2 of the early payments were 9 days late. However the last 5 have all been paid on time (25th Feb being the last payent received on time). On what basis do you think that CBL will be next?

I've confidence that the rbs team will do all they can to recover the debts by P*W*C but of course only time will tell. It's their 1st ever default so they have a huge reputation to lose should they treat the recovery process badly.

Each to their own risk profile I'm just trying to give a fact based opinon on my experiences. For me loaning £4k across 30ish business's at 15% average is far less risky than putting say £1k per company in listed shares. But overall it's about spreading your range of investments across multiple sources e.g, Buy-2-let, shares, funds, SEIS, EIS, P2B etc.

I still can't decide from your posts if you are amazingly naive, or the MD of RBS. Regarding your post:

1. CBL - Funding Circle presented a winding up petition for the borrower to the court on 14th February and that this has now been served on the borrower. Furthermore, Funding Circle has notified rebuildingsociety that it considers that subsequent loan repayments should be deemed void under s.127 of the Insolvency Act 1986 and has put rebuildingsociety on notice that it may be liable for any future funds received from the borrower and distributed to its lenders. (info courtesy of the other forum)
2. How much will it cost you to have RBS do all they can?
3. You keep quoting 15% as the rate you are getting. Would you like to estimate your net return if these 2 both go down the pan?

zester

Can someone tel me - do you pay tax when you earn the interest - i.e each year - or just when you withdraw the funds to your own account?

Thanks

MarkFromCornwall

zester wrote: »

Can someone tel me - do you pay tax when you earn the interest - i.e each year - or just when you withdraw the funds to your own account?

Thanks

The former, as it's earned, ie. each year.

plodder73

How can I have less money in zopa than I've paid in? I put £8000 in a couple of months ago, as of today I have £178 in holding account, £81 money on offer and £7706 lent out which means I have £35 less than I have paid in. How can this be ?

MarkFromCornwall

plodder73 wrote: »

How can this be ?

Look on the account screen and see if you have some bad debts and lender fees.

plodder73

Done that, no bad debts , fees £1.28. Not the best investment I have made so far

drdjnicholls

'So last night I signed up to Zopa to get a feel for the site / lending etc. but looking at there recommended rates, there costs and possible bad debtors got me thinking is it worth the effort to do it'.

Thank you Chorlie as I thought I was alone in thinking this. I looked at a wide range of p2p lending/borrowing bodies very recently to see if I could obtain a better return on my capital, but some involved auctions together with very very few would-be borrowers listed, while others offered less than 4%. On one I could not even get any takers on a loan offered at 3.8%.
I therefore thought to myself, 'considering the small [extra] return, is it worth it?'.
The only time I feel it would be worth it is someone able to invest say, £50,000+, when the difference between P2P and conventioanl building societies would be impressive, but how many people would want to lend this amount?
In sum, I found what was on offer on a range of p2p lending groups to be disapppinting.

pawcio.g

Now a question from a borrower perspective - is the amount of P2P funds borrowed visible on a credit report? Or any information that might suggest person is involved in P2P borrowing (apart from the initial credit check, of course).

mikb

plodder73 wrote: »

Done that, no bad debts , fees £1.28. Not the best investment I have made so far

OK, not to panic just yet.

First of all the likely suspects of bad debt -- you've ruled out AND as a new lender, the safeguard fund should cover that.

Fees. The first money you lend out accrues fees much faster than the first interest payment coming back. This is normal, and it makes everyone's account go a bit negative at first. This will correct over time.

The big one, that you may not know about, is Zopa's accounting process, for the 1st=2nd of the month suffers from numerical constipation.

You should notice, on your dashboard, a little (!) next to some figures. Around this time of month, the repayment run takes a long time to process, and while it does: (!) is a warning things may not be right.

Give it a couple of days and look again, it should balance better.

What tends to happen is that money is no longer counted as "on loan", but crucially has not yet been credited back to your holding account/offers. So you will appear short. It will clear up.

After a couple of days, if you still look in the red, post back here, or over at the zopa forum (http://talk.zopa.com/) , and I'm sure someone will explain where it's gone.