Peer-to-peer lending sites: MSE guide discussion

Malthusian

Goudy wrote: »

I'm curious to know which "may" be hit the worse with Brexit?

P2P investors lending to local small and medium business and personal loans.
Or
Our national stock market made up of companies that trade internationally and global stock markets that require currency exchanges.

I suspect you've almost answered your own question. However a fuller answer would be:

If Brexit goes well - global stockmarkets would be worst hit - as an increase in Sterling would reduce the value of overseas assets in £ terms. (But on the plus side, your Sterling-priced shares would buy more stuff from overseas.)

If Brexit goes badly - in general the answer would be P2P.

However, many P2P loans will be resilient to the negative effects of Brexit, because they're worthless already. If I'm a dodgy property developer who's borrowed money from the likes of ***** on a nod and a wink and it's already long been spent or disappeared into a shell company, Brexit won't change anything as to the likelihood of repayment.

Snow_Dog

Brexit wont significantly change much long term. The media and politicians are all paid to sensationalize every single aspect, snippet and nuance of everything about it. Everything is either it will be the end of times or it will be sunny and rosy and everybody will win.


Back in reality, house prices, s&s, p2p, the economy will still chug along with a blip either way whatever sort of deal is done.


As far as p2p is concerned, my current returns this year are running 6-7% which is more than my pension pot or s&s ISA has achieved, proving to me the benefits of a full spread portfolio.


Couple of people have asked if everybody is getting out of p2p. I dont really see that happening given the platforms i use are all growing. I am steadily increasing but keeping ratios sensible.

Fatbritabroad

For me p2p is a valid part of your investment if you take it for what it is. The danger is when people get greedy and pile in. You only have to look at the collateral thread to see people who freely admitted getting sucked in to the high interest rate. It's why i diversify across multiple platforms and the high risk ones like ablrate I keep my investments to a few hundred per loan. 15%, returns is fantastic but its inevitable some will default just by the nature of their borrowers.

masonic

For those exiting Moneything or trying to bed&ISA, there has just been £2.5m of funds repaid, so secondary market queues are moving. There have also been some interesting opportunities popping up on the SM for those looking to reinvest funds.

Psyduck1980

AdrianC wrote: »

My initial P2P exploits were with Funding Circle... Ah, yes. FC... Glad I got clear of that sorry mess.

Dare I ask what the issue with Funding Circle is?

dont_use_vistaprint

Is there a forum for P2P or just this one thread for all of it ?

I'm actually doing ok on the FC automated thing, 11.2%, over 1 year in and still no debts , I do constantly sell and take new loans, as theres no fees now for this, is this the trick or am I just extremely lucky ?

On the other platforms I am very choosy, but not getting above 7-8%

AdrianC

Psyduck1980 wrote: »

Dare I ask what the issue with Funding Circle is?

Was. It was a while ago now, but rising defaults, lousy property loans, falling rates - and simply decreasing confidence. Fortunately, the rising defaults were something I mostly watched from the safe shores (because I bothered to do DD), but the subsequent move to autobodge-only means that would be unavoidable now.

Two years after selling out of as much as possible, my recoveries are just over 10% of the defaulted amounts. XIRR of just under 7%, all in.

dont_use_vistaprint wrote: »

Is there a forum for P2P or just this one thread for all of it ?

There are several outside of MSE. Inside MSE, just here.

Malthusian

dont_use_vistaprint wrote: »

Is there a forum for P2P or just this one thread for all of it ?

There are a number of individual P2P threads for the bigger platforms, mostly started by Jamesd to prevent this thread being overwhelmed. Other than the thread for Kufflink, which I've seen bumped up a few times recently, I think most of them are basically dead. Jamesd hasn't posted for a while.

Ash_Pole

dont_use_vistaprint wrote: »

I'm actually doing ok on the FC automated thing, 11.2%, over 1 year in and still no debts , I do constantly sell and take new loans, as theres no fees now for this, is this the trick or am I just extremely lucky ?

Interesting idea. I guess loans are more likely to go bad in year 2 than year 1. How often do you sell and buy? I might give this a go, I've done ok with FC but I've not had rates in double figures.

Shedman

Malthusian wrote: »

There are a number of individual P2P threads for the bigger platforms, mostly started by Jamesd to prevent this thread being overwhelmed. Other than the thread for Kufflink, which I've seen bumped up a few times recently, I think most of them are basically dead. Jamesd hasn't posted for a while.

Yeah I'd noticed Jamesd hasn't been around for a while ..used to find his pension posts very useful, especially a couple of years ago when I was being made redundant. Mind you I thought he was often a bit too over bullish on P2P. Hope all is OK with him.