Peer-to-peer lending sites: MSE guide discussion

takesyourchances

masonic wrote: »

Frightening. I sold out of my 5 year contracts paying 6.5% because I felt that rate was too low.

I would of been well happy topping up the 5 year at 6.5% today with Raresetter If I can get 5% and over with Ratesetter I don't mind that rate as it is pretty much hands off and for the higher rates I am still working on getting more taken up with Collateral and Moneything which involves the more hands on and being active to get built up.

Collateral is taking me a bit longer to get filled up, I have some balance still to get filled and the renewals I am finding hard to catch with working when they open and getting snapped up.

mad_despot

What do people on here think of Lendy? Their interest rates for investors are 9-12%, which makes me think of the adage "If it sounds too good to be true etc".

Anyone had any experience with them? Their rates are way higher than some other P2P companies, although they only make property loans. Is there a catch that I'm missing?

Eco_Miser

mad_despot wrote: »

What do people on here think of Lendy? Their interest rates for investors are 9-12%, which makes me think of the adage "If it sounds too good to be true etc".

Anyone had any experience with them? Their rates are way higher than some other P2P companies, although they only make property loans. Is there a catch that I'm missing?

There's a thread dedicated to them, under their old name.

In fact there are threads , starting "P2P: " for each of the major P2P platforms.

mad_despot

Eco_Miser wrote: »

There's a thread dedicated to them, under their old name.

In fact there are threads , starting "P2P: " for each of the major P2P platforms.

Thanks, I didn't know that, I'm having a read now . :beer:

chockydavid1983

I have £1k with Ratesetter until I get the bonus £100 next month I think.
After that, only the longer fixes look worth it if anything...

mr._prude

Is the £100 bonus treated as interest from a tax point of view (ie part of ur £1000 allowance if a 20% paye)?

Froggitt

For some reason, different P2Ps treat it differently.

Pleiomedes_Nutcracker

A year ago I put £5000 into RateSetter's Everyday package, in the five year stream. They added £50 at the outset, and at the end of the year the income (excluding the £50) was £278.09, which is a 5.5% yield. I get another £50 (as part of the deal that was offered when I signed up) at the start of the coming year.

It's very straightforward to use and easy to understand. Because all your investment is loaned out at the beginning, rate changes only affect the reinvestment of interest and repaid funds, so the effect of the changes is quite slow. However, one of the people to whom my money was lent repaid the whole loan early, which did dent my income because it was loaned back out at a lower rate.

Froggitt

Yes that's annoying when a loan is repaid and then reinvested lower. You can set a minimum loan rate, eg mine is 5.6%, but then you run the risk of being out of the market for a time.

elephantrosie

is ratesetter still doing the 100 quids bonus?