Peer-to-peer lending sites: MSE guide discussion

masonic

Kevin_Price wrote: »

Hi. After reading Martin's article, I tried to move my ISA out of ZOPA. The AA wouldn't accept the transfer from what is an IFISA. Is there an ISA provider who will accept my transfer? Thanks for any help.

Lots will. I've successfully transferred an IF ISA to a TSB cash ISA. I'd imagine any major bank would do so, and from there it could be transferred on to any other provider.

Ash_Pole

Kevin_Price wrote: »

Hi. After reading Martin's article, I tried to move my ISA out of ZOPA. The AA wouldn't accept the transfer from what is an IFISA. Is there an ISA provider who will accept my transfer? Thanks for any help.

There are plenty that will (I assume you've sold all your loan parts and are wanting to transfer the cash balance).

Nardge

Kevin_Price wrote: »

Hi. After reading Martin's article, I tried to move my ISA out of ZOPA. The AA wouldn't accept the transfer from what is an IFISA. Is there an ISA provider who will accept my transfer? Thanks for any help.

To my eyes Martin's article didn't really say anything that I didn't know already...
That it is an 'Investment', 'Capital is at Risk', 'Brexit may have positive or negative effect' etc

It will have undoubtedly helped those who invested money without lucidly understanding the 'product' however

The fact that Lendy would go 'pop' was predicted I think years ago, so really no surprises there
'Safer' p2p firms are as per previous posts, and are either 'vouched' for on this thread, &/or approved of by '4th Way'.
Some would add Ablrate to my own list. I've no experience of them myself though

The next to crash on the other hand could well be Funding Circle and Funding Secure

With Kind Regards

DireEmblem

I thought I would add a quick note on ZOPA based on my experience. I'm coming up to the end of my 2 year mortgage term, and looking at renegotiating my deal, the money I can save by reducing my capital, is effectively the same as the average return I have been achieving through ZOPA.

As a result, I decided last week, to sell all my loans, and put the funds towards my mortgage. Within 4 days, 97.3% of my funds were in a holding account, ready to be transferred to my bank, and the other 2.7% was hovering around the repayment date or in distress. I have since been able to withdraw a further 1.2% of my funds.

Overall currently standing at 98.5% of my funds back into my bank account in under 2 weeks.

Curls2208

Hey, I'm still fairly naive when it comes to this, and although I'm doing my research I still have a query.

The reinvest option? (I'm with Zopa)

Say if I invest £10k at 4% interest. Nothing goes wrong, people pay me back etc etc all is well. I'd expect around £10,400 back after a year right?

So now, I choose to not reinvest my money but just keep it in my holding account as its paid back and then withdraw it. Would I be expecting around £10,400 back or less?

is that estimated 4% only based on if I invest, and then reinvest and reinvest and reinvest.

I have some money invested, but I do have my concerns so may move it around to other places. If I choose not to reinvest and move it on I do wonder if it will have been worth me doing peer to peer lending at all?

AdrianC

Curls2208 wrote: »

Say if I invest £10k at 4% interest. Nothing goes wrong, people pay me back etc etc all is well. I'd expect around £10,400 back after a year right?

So now, I choose to not reinvest my money but just keep it in my holding account as its paid back and then withdraw it. Would I be expecting around £10,400 back or less?

4% is based on the amount of money invested multiplied by the time invested.

So £10k for 1yr = £400,

But if you don't reinvest when it's paid back, you have less than £10k invested for less than a year... If your average invested amount over the year is £5k, then you'd get £200 interest.

If you want to model it in a spreadsheet, the XIRR function is the one you're after.

Curls2208

Thanks for your advice. I think I'll spread out my money over a few platforms and have P2P lending as one of them. I like the idea and so far it has worked well for me, but I do fear the risks involved too. I'm fairly wealthy right now but don't have a mortgage yet so that will all change in a few years., I was going to P2P lend 4K before I stuck it in my LISA before the end of financial year, therefore maximising interest, but I don't think it's the wisest move.

Nardge

Loanpad are offering £50 cashback for new £1000 - £4999 investments via Quidco. There are other deals available for those investing greater sums. You can earn 4% or 5% interest on the sum invested depending on your choice of the two. Loanpad are one arm of my diversifications and they’ve been very good so far, with great communication.

With Kind Regards

Ciprico

Growth Street are offering £200 if you keep £2000 invested for a year, so that plus the 5% or so "interest", makes it a good deal - assuming they survive and can pay up....

DragonQ

I'd never put in huge amounts of money into P2P sites but cashback deals certainly make them attractive. The most I've got in a P2P site is £2k at ~7.0% AER after cashback is taken into account. Worth the risk for me personally but it should definitely only be considered after you have normal savings and investments IMO.