Peer-to-peer lending sites: MSE guide discussion

dont_use_vistaprint

masonic wrote: »

I have three different IF ISAs. In one of them, I've flexibly withdrawn about 25% of the funds as there is a lack of investment opportunities. The other two are smaller, and I'm not planning to subscribe more funds to either.

For me, I'd rather have ~£20k of unwrapped S&S assets and £20k of P2P money in an ISA (saving perhaps ~£300 in income tax per year). I can manage the CGT situation easily at that level. But it will be a pain if I decide at some point to exit P2P altogether as it could be 2-3 years or longer before all of the funds could be freed up.

You'll obviously be aware that £20k paid into a cash ISA on 5th April can be partially transferred to multiple IF ISAs from 6th April.

I agree re-non ISA S&S, ISA P2P. I have to decide before end Jan on the Cash ISA, I have some allowance yet, was just waiting to see how big the tax bill was! but I may just stick the remaining allowance in P2P this year

I must have misunderstood but thought you can only have one IFISA - plus one cash, one S&S etc

masonic

dont_use_vistaprint wrote: »

I must have misunderstood but thought you can only have one IFISA - plus one cash, one S&S etc

You can only contribute to one ISA of each type per tax year.

jamesd

Malthusian wrote: »

6.6% over four years is not great considering the world stockmarket is up 12.6%pa over that time, with the UK Smaller Companies sector (for a slightly closer comparison) lagging that slightly at 11.7%. And yes, it's comparable. Capital at risk investment is capital at risk investment.

It's not close to being comparable. All risk-based investments aren't the same and in a stock market crash that sees the FTSE fall 40% the small caps are likely to fall by 60-80%..

Malthusian wrote: »

Naturally this is in a market, but there can't be many people who are still optimistic enough to think that a crash will treat P2P better than it does listed eies.

A stock market crash will treat P2P far better but how much better depends on the specifics of the P2P and the cause of the crash.

In a very bad case like 2008 where the cause of the crash is failure in the financial system and consequent recession as well the default rate at Zopa roughly doubled for some loan classes. I still have loans from that period repaying even though these are unsecured loans. This sort if crash would be particularly bad for property development loans because security values would drop while time to sell would increase, the likely result being lots of illiquid defaulted loans where it doesn't make sense to size and sell the security so lenders ars stuck until the market improves. Pawn tends to suffer reduced auction sale prices so the security might not cover the loan value more of the time. Business loans can be eecured or unsecured and the secured ones would probably do fairly well if a borrrower failed and the security is residential property, worse if it's business plant.

But 2008 was a once in a lifetime event, probably. A more typical stock market crash recovers faster and has lower effect on the rest of the economy so P2P would be less affected.

jamesd

New email about Collateral from BDO today, please send the requested agreement to help them persuade reluctant borrowers to play nice.

Roland_Flagg

Has anyone else got a letter from HCR?
It seems Lendy are being sued by one of their borrowers, and Lendy's investors could be sued also.

AdrianC

Where've you been? This has been ongoing for nearly three months already, and Lendy have been in contact with all investors in the loans over that time.

Roland_Flagg

Sorry, I've only got a small amount in Lendy, and only £100 in one of these loans. I've kind of been ignoring it.

BUT, the letter just arrived the other day.

masonic

Roland_Flagg wrote: »

Sorry, I've only got a small amount in Lendy, and only £100 in one of these loans. I've kind of been ignoring it.

BUT, the letter just arrived the other day.

What's interesting is that there's speculation that your losses may not be limited to the amount you have invested.

takesyourchances

jamesd wrote: »

New email about Collateral from BDO today, please send the requested agreement to help them persuade reluctant borrowers to play nice.

I have sent my email James. It will be a long road it seems for whatever the final outcome will be.

Snow_Dog

So, as 2018 draws to a close how did everybody get on with their p2p?


Any platforms an outstanding success for anybody?


Mine is a pleasant result - will end the year 13% up (including referral bonuses, one platform accidentally crediting too many bonuses and Assetz bonus/cashbacks).


Favourite platform - Assetz for the MLA