Peer-to-peer lending sites: MSE guide discussion

jayjayuno

Robo.cash.
Anyone any experience if this,good or bad?
I was thinking of putting something in, short term, it offers 12% for 30 day investments, which would help while I'm looking for a property.

AdrianC

jayjayuno wrote: »

Robo.cash.
Anyone any experience if this,good or bad?
I was thinking of putting something in, short term, it offers 12% for 30 day investments, which would help while I'm looking for a property.

12% annualised is ~1% for a month.

What do you think the chances of a default, or of not being able to access your money, at the end of the month are? Higher than 1%?

Snow_Dog

jayjayuno wrote: »

Robo.cash.
Anyone any experience if this,good or bad?
I was thinking of putting something in, short term, it offers 12% for 30 day investments, which would help while I'm looking for a property.

Anything that offers 12% is going to come with associated risk. If you can afford to lose the lot then fair enough, thats the question you have to ask yourself.

jaizan

One of my former tenants was a Chinese student who managed to take out a substantial loan with RATESETTER just before returning to China.

Ratesetter persist in sending letters chasing the money, which is not very effective since he has emigrated. These people are clearly thick.

The banks don't lend to students temporarily in the UK, however it seems the P2P companies are quite happy to lend to such people, even though most return home after their studies.

I cannot imagine what such careless lending does to their default rate and the net return after defaults.


I advise anyone to look carefully at their default rates and lending controls before lending money to RateSetter.

firestone

while its not to say it is not worrying - by the amount of debt chasing/bailiffs programmes on tv it would seem that anybody including the banks can be taken for a ride
You would assume RS as they are on comparison sites and work with companies like Giff Gaff are using industry wide T&C such as minimum 3 years UK resident,over 21,bank account with source of income etc

save_it_spend_it

I wrote a brief blog on this as I found it confusing and wanted to work out what those access fees mapped to in terms of reasonable savings.
"ratesetters-access-plus-and-max-offerings-which-should-i-pick" - on medium
Hopefully of some help to people with same confusion.

Tl;DR,
"Access is best until day 121
Plus is best all the way until day 341
The gain tails off as time goes on. The gain from exceeding the above dates is less than the loss from withdrawing early"

Froggitt

save_it_spend_it wrote: »

I wrote a brief blog on this as I found it confusing and wanted to work out what those access fees mapped to in terms of reasonable savings.
"ratesetters-access-plus-and-max-offerings-which-should-i-pick" - on medium
Hopefully of some help to people with same confusion.

Tl;DR,
"Access is best until day 121
Plus is best all the way until day 341
The gain tails off as time goes on. The gain from exceeding the above dates is less than the loss from withdrawing early"

What's unclear with these new RS products, is how borrowers are split between this pot, and the old 5 year pot which is still going.

JB50

I've had a Ratesetter IFISA since it started and I recently recommended a friend (warning them they could lose their investment!). A few days later I saw that I'd received £50 bonus in my Everyday (taxable) account, as my friend had invested £1000. I wanted it transferred into my IFISA but a member of staff explained when I phoned that I must request to withdraw the £50 but there was no guarantee how long this might take, as it depended on whether another investor was willing to take over my £50 Everyday investment. What actually happened was that I clicked the button to withdraw it, and it took about 4 hours for my money to go into my holding account. OK it's only £50 but reality was better than expected. I could then have withdrawn the £50.03 (including my few days' interest) entirely, but I chose to invest it into my existing 1 year IFISA product, which still operates as before, even though it's unavailable to new investors.

itwasntme001

I personally have derisked out of P2P completely and i recommend everyone else do so. There are so many risks with P2P and the returns do not compensate enough for these risks.


Avoid completely.

Nardge

itwasntme001 wrote: »

I personally have derisked out of P2P completely and i recommend everyone else do so. There are so many risks with P2P and the returns do not compensate enough for these risks.
Avoid completely.

Whilst I can understand that, it does beg the question, where else can one make money that yields favourable returns? Bank switching deals get used up, 'high' interest current and regular savings accounts watered-down and/or discontinued, and stocks and shares are very long-term. So bar p2p, what else is there?

With Kind Regards