Peer-to-peer lending sites: MSE guide discussion

JenniferK

alarch83 said:

I'm considering investing in Ratesetter soon as they have a £100 welcome bonus for new investors investing at least £1,000 for a year.  The site looks a lot more straightforward than recent comments suggest - I don't think they allow you to set your own interest rate anymore.

I know someone who's had a long wait to get an investment back from Funding Circle (still waiting for the majority!) who have, due to the coronavirus, just disabled the function for investors to sell loan parts to each other, meaning money will now (for the time being) only be received as and when loans are repaid.

Lots of websites are advising against selling stocks and shares right now - "only then potential losses become real" and "sit tight until markets improve", adding "now is the perfect time to invest (while markets are low) if you have any spare cash".  I'd like some advice on whether now is a good time to invest in P2P given the current circumstances and the impact of the coronavirus on the industry in general, especially if you have experience of a range of the P2P platforms available.  Many thanks in advance.

Ratesetter do allow you to set your own interest rates up to 8%. 

keyboardworrier

The welcome bonus will still be available once the situation returns to normal. I would not invest in RateSetter right now

alarch83

bluenun said:

I got in late to P2P, over 13 months ago. Not only are Ratesetter delaying withdrawals but I am having to chase the so called welcome bonus. So do not rely of receiving the welcome bonus.

Thanks.  Did you set your own interest rates?

alarch83

JenniferK said:

Ratesetter do allow you to set your own interest rates up to 8%. 

Thanks.  The website says you can choose between 3% with no release fee, 3.5% and lose 30 days' interest as a release fee or 4% if you lose 90 days' interest.  No mention of setting your own rates.  When did you set your own rates?

Alexland

alarch83 said:
The website says you can choose between 3% with no release fee, 3.5% and lose 30 days' interest as a release fee or 4% if you lose 90 days' interest.

So we haven't sufficiently discouraged you from P2P yet? Just to be clear this is not FSCS protected, there is a real chance you could lose all the money including the interest and bonus payment. As keyboardworrier observes if RS survive this recession (P2P platforms were even going bust in the good times) they will still be keen to sign up lenders in future with similar offers at a time when their loans are less likely to default.

alarch83

Alexland said:

So we haven't sufficiently discouraged you from P2P yet?

Thanks.  I didn't say that.  I'm aware that it's not FSCS protected.  I just like to be well informed before making a decision.

soulsaver

alarch83 said:

JenniferK said:

Ratesetter do allow you to set your own interest rates up to 8%. 

Thanks.  The website says you can choose between 3% with no release fee, 3.5% and lose 30 days' interest as a release fee or 4% if you lose 90 days' interest.  No mention of setting your own rates.  When did you set your own rates?

Investors Faqs:

Going Rate: RateSetter determines the Going Rate based on the supply and demand within the RateSetter marketplace, the external rate environment and the borrowers RateSetter is seeking to attract.  Our ambition is that the rates available on RateSetter are always attractive compared to the rates offered by traditional savings.

Your Rate: You can set Your Rate for new investments and reinvestments up to 5% above the Going Rate.

alarch83

Investors Faqs:

Going Rate: RateSetter determines the Going Rate based on the supply and demand within the RateSetter marketplace, the external rate environment and the borrowers RateSetter is seeking to attract.  Our ambition is that the rates available on RateSetter are always attractive compared to the rates offered by traditional savings.

Your Rate: You can set Your Rate for new investments and reinvestments up to 5% above the Going Rate.

Thanks for that.  Like the welcome bonus, that info is very well hidden on the site!  Is the fee to release an investment still 90 days' interest even if you set your rate at 8%?  What's been your experience of RS?  Any noticeable impact due to the coronavirus?

soulsaver

alarch83 said:

Investors Faqs:

Going Rate: RateSetter determines the Going Rate based on the supply and demand within the RateSetter marketplace, the external rate environment and the borrowers RateSetter is seeking to attract.  Our ambition is that the rates available on RateSetter are always attractive compared to the rates offered by traditional savings.

Your Rate: You can set Your Rate for new investments and reinvestments up to 5% above the Going Rate.

Thanks for that.  Like the welcome bonus, that info is very well hidden on the site!  Is the fee to release an investment still 90 days' interest even if you set your rate at 8%?  What's been your experience of RS?  Any noticeable impact due to the coronavirus?

I'm not aware of the latest position: I w/d all my funds  late last year. 

masonic

alarch83 said:

Investors Faqs:

Going Rate: RateSetter determines the Going Rate based on the supply and demand within the RateSetter marketplace, the external rate environment and the borrowers RateSetter is seeking to attract.  Our ambition is that the rates available on RateSetter are always attractive compared to the rates offered by traditional savings.

Your Rate: You can set Your Rate for new investments and reinvestments up to 5% above the Going Rate.

Thanks for that.  Like the welcome bonus, that info is very well hidden on the site!  Is the fee to release an investment still 90 days' interest even if you set your rate at 8%?  What's been your experience of RS? 

You can set your rate at 8%, but you'll never get any of your money lent out at that rate, so won't earn any interest. People only do this when they are trying to escape Ratesetter!

alarch83 said:

Any noticeable impact due to the coronavirus?

Perhaps you should read some of the previous posts in the thread.