Peer-to-peer lending sites: MSE guide discussion

Ash_Pole

My reinvestment with ratesetter seems to get consistently matched at higher rates than the "last matched rate", and at higher than the rate trends charts suggests. For example, I've had several hundred matched at 6.5% (5 year market) in the last few days but the max on the chart is 6.4%. Anyone know why this is?

Conrad

I can see a ton of folk losing money on peer to peer. Recall all those Lloyds names that were wiped out when things turned the wrong way.

Daz2009

Conrad wrote: »

I can see a ton of folk losing money on peer to peer. Recall all those Lloyds names that were wiped out when things turned the wrong way.

Clearly you have great foresight so can you give me the next winning lottery numbers please

Froggitt

Conrad wrote: »

I can see a ton of folk losing money on peer to peer. Recall all those Lloyds names that were wiped out when things turned the wrong way.

Not if they only put say 10% of their available cash into P2P as part of a balanced portfolio.

paddyrg

Ash_Pole wrote: »

My reinvestment with ratesetter seems to get consistently matched at higher rates than the "last matched rate", and at higher than the rate trends charts suggests. For example, I've had several hundred matched at 6.5% (5 year market) in the last few days but the max on the chart is 6.4%. Anyone know why this is?

Possibly just plain luck - on one day of the month the demand was higher than the supply, so the match was made at a higher rate, whereas the next day, a bunch of monthly loans all end at once, going into the same market, and the rate may drop to 6.3 or below.

itm2

itm2 wrote: »

I have a couple of P2P lending investments - one with Funding Circle and a rolling 30-day investment with Ratesetter. While the rate of return has been good so far, I haven't got any experience of cashing in.
I was curious to know how long it generally takes to sell and withdraw investments with Ratesetter and Funding Circle - are we talking a couple of weeks, a month, more??

To partially answer my own question (in the absence of any other replies!)....I tried cashing in my £1k investment with Funding Circle a few weeks ago, to see how smooth/quick the process was, and how liquid my assets were. I used the autobid/autosell settings. The funds had been invested for 23 months, at a chosen target annual rate of return of 6.1%

After 2 weeks I had been able to sell and cash in £1071.84. After another 10 days another £23.27 had been sold (and is now available to be transferred to my bank account). There remains £27.22 out on loan, unsold as yet.

So I have now recovered my original investment plus a 9.5% return after 23 months, having originally selected a target annual return of 6.1%. I have yet to discover the fate of the remaining loans of £27.22, which would increase my total return to 12.23% over 2 years if it can be sold and cashed in quickly.

I guess this is broadly in line with what I expected, although I'm curious to know what will happen to the remaining £27.22 (i.e. how long it will take to recover it).

Jayp7541

Has anybody had any experience with Property Partner ?

Searched the forums but can't find any others reporting their experience.

Would be nice to hear from anybody who's invested with that platform.

TheTracker

Jayp7541 wrote: »

Has anybody had any experience with Property Partner ?

Searched the forums but can't find any others reporting their experience.

Would be nice to hear from anybody who's invested with that platform.

So far my only experience is this apparently spam post. Not a good start, eh?

AlanP_2

Jayp7541 wrote: »

Has anybody had any experience with Property Partner ?

Searched the forums but can't find any others reporting their experience.

Would be nice to hear from anybody who's invested with that platform.

Have you read here:

http://p2pindependentforum.com/board/92/property-partner

Jonbvn

Conrad wrote: »

I can see a ton of folk losing money on peer to peer. Recall all those Lloyds names that were wiped out when things turned the wrong way.

Being a Lloyds Name is hardly synonymous with P2P lending, given that Names had unlimited liability for some huge insurance claims in the 80's & 90's, which led to many going bankrupt.

Peer to peer lending is not some huge single monolithic investment. They key to managing risk with this (and other investments) is diversification.

Some simple steps to accomplish this:

1. Do not invest in P2P only. Your portfolio should include other asset classes.
2. Invest in several different P2P platforms.
3. Within each P2P platform invest in several different un-linked loans (where possible) or there is a safeguard/provision fund.
4. Understand that P2P is not a savings account and the risk/reward varies accordingly.