Peer-to-peer lending sites: MSE guide discussion

rwgray

Just picked up 6.9% at Rate Setter. And 19% at Rebuildingsociety. But RS lets you invest great lumps of money at very fixed rates with negligible risk over the full term. Whereas Rbs has very unknown risk and you need to review each and every business for just a relatively small amount invested - e.g. you might put £1k in one loan at RS but as little as 1% of balance (say, £20 - £100) into one at Rbs. It takes both to Tango, no?

Rich.x

p.s. 30th June update: just picked up 7.0% at Rate Setter, in spite of some lower rate loans this week. Stick to your guns!!

Jonbvn

rwgray wrote: »

Just picked up 6.9% at Rate Setter. And 19% at Rebuildingsociety. But RS lets you invest great lumps of money at very fixed rates with negligible risk over the full term. Whereas Rbs has very unknown risk and you need to review each and every business for just a relatively small amount invested - e.g. you might put £1k in one loan at RS but as little as 1% of balance (say, £20 - £100) into one at Rbs. It takes both to Tango, no?

Rich.x

Be careful with such statements. RS does seem low risk. However, it has not been through a full economic cycle yet

arbster

Quick question about the Income products on RateSetter. I presume that if you specify that monthly capital/interest is re-invested in the same product (eg 3 Year Income) you're effectively entering into a fresh 3-year investment with each small monthly amount? Therefore, the product never truly "matures" because the principal and interest will all have been re-invested over the 3-year term, into new, smaller 3-year loans?

Hantsman

arbster wrote: »

Quick question about the Income products on RateSetter. I presume that if you specify that monthly capital/interest is re-invested in the same product (eg 3 Year Income) you're effectively entering into a fresh 3-year investment with each small monthly amount? Therefore, the product never truly "matures" because the principal and interest will all have been re-invested over the 3-year term, into new, smaller 3-year loans?

That is correct, you have the option of only reinvesting the capital and having the interest go to your holding account to withdraw if you wish, which would generate a form of passive income while the money you originally put in is lent and re-lent.

rwgray

Jonbvn wrote: »

Be careful with such statements. RS does seem low risk. However, it has not been through a full economic cycle yet

Thanks for the caution. Another 2008 would test any business model, of course. And, indeed, will...


I always prefer income to my holding account. Keeps some control.

Rich.x

tulipthecat

I'm planning on joining Funding Circle. Would anyone like to refer me?

Referral received. Thanks

agent69

tulipthecat wrote: »

Would anyone like to refer me?

I'd rather discourage you

TheT_2

tulipthecat wrote: »

I'm planning on joining Funding Circle. Would anyone like to refer me?

Thanks

I've sent you a PM.

rwgray

tulipthecat wrote: »

I'm planning on joining Funding Circle. Would anyone like to refer me?

I must admit, I'd sooner recommend Rebuildingsociety, with much higher rates to compensate for bad debts.

Rich.x

Futuristic

Sorry newbie here, so is RateSetter the recommended place for multiple investments for 1-3 years below £10k?