Peer-to-peer lending sites: MSE guide discussion

MrOverheads

I can't say whether it would maximise your returns. To do that you would need to have put it all on Leicester to win the premiership.

I'm saying spread your risk, not only across a single platform with multiple investments, but spread it across multiple platforms hence spreading your platform risk. £5k in each gives a nice spread that's manageable in my own opinion. You could easily find 16 platforms and put £1k in each, but that would be silly.

Brandnewstart79

Think I'm going to wait and find out what's going to happen with Brexit before I make any decisions on where to put my money but the thought of spreading it across the platforms does sound the most favourable option.

Thanks for your help.

jnm21

MrOverheads wrote: »

Ratesetter - almost like a bank deposit account, covered by a provision fund but there is still an underlying risk but small and lower rates % on rolling monthly reflect this lower risk

Am I the only person who thinks that % on a capital at risk product is totally bonkers? The three year one dropped to 2% at one point, which is crazy. Surely it must be measured against what is available on the high street (i.e. Santander 123) & must compare favourably due to the risk?

As for the risk, I don't think it should be played down - it is certainly nothing like a bank with FCS. That reminds me I haven't had a look at the provision fund figures in ages... phew - the figures have not changed much in the few weeks since I last checked.

Can anyone help me with 2 ratesetter questions; what is the minimum withdrawal? Also if I have several 5 year loans at various rates (say 5.9 to 6.4%) & I 'sellout' a small part of my total amount, which loans will they sell (the 5.9% one or the 6.4% one)?

Rollinghome

jnm21 wrote: »

Am I the only person who thinks that % on a capital at risk product is totally bonkers? The three year one dropped to 2% at one point, which is crazy. Surely it must be measured against what is available on the high street (i.e. Santander 123) & must compare favourably due to the risk?

As for the risk, I don't think it should be played down - it is certainly nothing like a bank with FCS. That reminds me I haven't had a look at the provision fund figures in ages... phew - the figures have not changed much in the few weeks since I last checked.

In most cases I'd agree: totally bonkers when around £70k can be saved in current accounts paying from 3-5% with no risk (that's around £140k between you for anyone with a spouse).

The exceptions will be those who for whatever reasons find it hard to get accepted for current accounts and those who want to hold sums larger than £70-140k in cash. Except that money in p2p shouldn't ever be considered as "cash".

A couple of articles on the subject on Mail's money pages yesterday: www.thisismoney.co.uk/1 and www.thisismoney.co.uk/2. And being the Mail they must be balanced and true.

If not, it should at least alert punters that handing their dosh to p2p companies where it's difficult to fully evaluate the risks is very different to putting savings in a bank with instant access and guaranteed by the FSCS. Which is why it should be considered as "investing" requiring a return well above that available from the banks to compensate for the additional risk.

Can anyone help me with 2 ratesetter questions; what is the minimum withdrawal? Also if I have several 5 year loans at various rates (say 5.9 to 6.4%) & I 'sellout' a small part of my total amount, which loans will they sell (the 5.9% one or the 6.4% one)?

There's no minimum withdrawal afaia, at least none mentioned in para 5 of their terms, "Withdrawing funds", that I can see. If they hold a pound of yours they would need to pay it one way or another. On sellout, as with so many of their terms the conditions aren't clear but I would expect them to sell whichever was to their best advantage - normally the one that had been paying you the highest rate.

edinburgher

The minimum withdrawal is £1.

agent69

Fabio79 wrote: »

Hi all,

I'm thinking of investing funding circle as we have a disposable 16K which i want to invest to maximise the interest available.

Does anyone have any advice? I was thinking of using the 'Autobid' option and investing £20-£50 for each loan.

Would that work?

£16k in Faintly Comical using autobodge! Are you a troll?

If you're serious in investing in P2P2 then read the independent forum before you start, diversify between platforms and keep clear of RBS.

grey_gym_sock

agent69 wrote: »

If you're serious in investing in P2P2

that sounds like a cross between R2D2 and P2P ... a rather comic robot which intelligently manages your P2P investments?

jnm21

Froggitt wrote: »

Your reinvestment order O710558255025 for £17.90 at 2.1% in the 3 Year market within your Everyday account has been matched

:eek: Wonder if I can set my reinvestment option to Zopa.

Just watch - the rates seem to be heading south again - 3 year is at 3% again. I personally would not touch the 4 markets at much short of 3/4/5/6% - as a very rough rule of thumb, designed as much to be easy to remember, that seems to roughly represent achievable good value. All approx 1% under, except 3 year, which is 2% under! I really think market rate system needs reviewed - too easy to manipulate it negatively.

Futuristic

Anyone notice wellesley seem to have removed the monthly option? I was using that to reinvest the interest

I fell for the stupid free iPad Mini promo which in turn I just sold on to someone so have £3k in there @ 4.75% for 3yr and had the interest on 30day capital recurring. For the amount I sold it on and interest paid, i'll be in the green still about £20-30 so i'm debating to take the money out now.

chiefnoodle

Sorry to be off the point of the last few replies - but has anyone got experience with p2p lending from small biz savings, and if so any replies to a thread I started would be much appreciated:
https://forums.moneysavingexpert.com/discussion/comment/70787775#Comment_70787775

thanks