Peer-to-peer lending sites: MSE guide discussion

msallen

I can't give you any evidence for Assetz unreliability, but I completely sold up my loans there about a year ago. This was mainly due to "gut feeling" and the fact that the self select loan rates were falling from the double figures to around 6,7 or 8% with no discernible reduction in risk to match. They also had a poor reputation for not utilising the protection fund when loans were months behind on repayments (although I can't speak from personal experience there as I only used their self select loans not the "black box" accounts)

For what its worth - I also pulled out of Funding Secure, Huddle & Welendus, and I was in the process of selling up on Collateral when it went pop. I am withdrawing from Kuflink as loans repay. I am still happily in Ablrate, Unbolted, UOWN & LendingWorks - also in Moneything but currently reducing my exposure there, and may end up divesting completely unless they come up with some new quality loans fairly soon.

My combined rate of return currently stands at 10.8% (but that could fall to around 7% if we see nothing back from Collateral).

I certainly wouldn't advise anyone to put too much into a single platform, but for anyone looking to dip their toe into p2p with a decent rate of return for the level of risk, then I would start with Unbolted. Just be prepared to drip feed money in as it is lent out as you won't be able to get much invested very quickly there.

Alexland

msallen wrote: »

I am withdrawing from Kuflink as loans repay.

Out of interest what is your concern with Kuflink?

Alex

scaredofdebt

Does anyone have any experience of Funding Secure?

I've only got a small sum with them but one of the loans has an ending date of 21st July 2018 but I still cannot access those funds. Web chat said to give it another week or two, is this normal?

I have withdrawn funds before without any delay, or only a 24/48 hour delay.

msallen

Alexland wrote: »

Out of interest what is your concern with Kuflink?

Alex

I don't like the way they seem to think they can treat their investors as idiots with unbelievable spin or plain obfuscation - see various threads on the p2pindependent forum, or the reduction in "skin in the game" from 20% to 5%.

keyboardworrier

I just came across this interesting video from the offices at Kuflink, it gives a good indication of how they operate. They have made some mistakes in the past but I can see why they reduced the amount they co-invested from 20% to 5%, it was the way they spun the situation that slightly annoyed me.

https://www.financialthing.com/get-to-know-kuflink/




On another note entirely, Moneything loan 954 must be the least surprising default in the history of P2P. MoneyThing got warned numerous times not to take on the loan yet they did anyway.

Albermarle

scaredofdebt wrote: »

Does anyone have any experience of Funding Secure?

I've only got a small sum with them but one of the loans has an ending date of 21st July 2018 but I still cannot access those funds. Web chat said to give it another week or two, is this normal?

I have withdrawn funds before without any delay, or only a 24/48 hour delay.

4th Way have updated their review of Funding Secure :https://www.4thway.co.uk/candid-opinion/fundingsecure-quick-expert-review/?utm_source=4thWay%20News%20and%20Tips&utm_campaign=90615406db-4thWay_News_and_Tips_48&utm_medium=email&utm_term=0_415f2326f1-90615406db-308188353

You could also look at the Funding Secure section of the P2P independent forum , although you have to be casreful as unhappy investors tend to post a lot more tha happy ones.
http://p2pindependentforum.com/board/29/fundingsecure

Albermarle

msallen wrote: »

I can't give you any evidence for Assetz unreliability, but I completely sold up my loans there about a year ago. This was mainly due to "gut feeling" and the fact that the self select loan rates were falling from the double figures to around 6,7 or 8% with no discernible reduction in risk to match.

Yes the loan rates dropped without any decrease in risk . However an Assetz loan will have quite a good level of detail about the loan- a named borrower with financial history - independent on site valuations - good comms from the company - more solid reputation than some other P2P companies.
Some of the similar property related loans from other sites ( not all) offering 12%, do not have many or any of these attributes.
Of course you have to decide yourself what the risk /reward relationship that is suitable for you and how well you sleep at night.

Alexland

keyboardworrier wrote: »

I just came across this interesting video from the offices at Kuflink, it gives a good indication of how they operate.

Thanks really interesting video - looks like lots of employees and it makes me wonder how they can afford the payroll with only £24m of loans. I guess it would be just about viable if they were making 5% for themselves. Their companies house full accounts were filed 21st Sep 17 so we should be due an update soon.

Alex

takesyourchances

keyboardworrier wrote: »

I just came across this interesting video from the offices at Kuflink, it gives a good indication of how they operate. They have made some mistakes in the past but I can see why they reduced the amount they co-invested from 20% to 5%, it was the way they spun the situation that slightly annoyed me.

https://www.financialthing.com/get-to-know-kuflink/




On another note entirely, Moneything loan 954 must be the least surprising default in the history of P2P. MoneyThing got warned numerous times not to take on the loan yet they did anyway.

Thankfully I am not in that MT loan, but it was no surprise. I have ran my MT holdings down from nearly 5K peak to £650 for sale still and either they hopefully sell or complete whatever comes first and hopefully no more defaults and I have £650 still in default loans so will just wait on how these process and let things take their course. It has been a slow run down from MT.



My P2P has really reduced down now and of course the Collateral mess still on going and looking very likely a very long winded process ahead for everyone, however I don't think that much on it and what will be will be whenever that will be



Also not spending so much time on looking into loans and reading up on them has saved a lot of time and I am working on my other investment areas now in my S&S ISA etc. Between Collateral and MT I have around £5800, so will be glad to hopefully get MT run down and if any defaults back it will be a bonus and same for Collateral. I have a bit left in unbolted but running down from rate dropped and not actively putting any money into P2P so it has really changed from my 17K or so peak.



The lower rates P2P I just don't feel is worth it either and would prefer those funds in my S&S ISA long term and some IT's yield close to those returns. Oh yes, I have £70 in default in Assets as well for ages



I am sure the other investors with much higher sums in Collateral than my £4500 are peeved to say the least at this stage some with tens of thousands and more.



I will keep working on my P2P drawdown and transfer any over to my other investments long term.

Fatbritabroad

I'm currently in a few and seem ok but I'm sticking to the auto diversified apart from ablrate. Mainly for the intro bonuses tbh

Current make up is

6k in assetz in 30day and quick access accounts

6k in lending works

5300 in ablrate where my max exposure is less than my interest earned in each BORROWER (or linked group of borrowers) not loan

1000 in ratesetter and 2x 500 in Kufflink for the bonus. Again in their quick access accounts

So about 19k. This seems OK to me

In contrast I have 7k cash 60k in s and s and 150k in pension. I'm 37 so my holding in p2p is high but I'm willing to take on a bit more risk and hope the auto products are a bit less risk than the manual loans accepting a lower interest rate. Ive assumed the whole 20k could go in theory which I'd obviously be sick over but I wouldn't lose my house