Peer-to-peer lending sites: MSE guide discussion

bowlhead99

nxdmsandkaskdjaqd wrote: »

James, do you have a link to the poll results?

http://p2pindependentforum.com/thread/8441/which-p2p-platforms-use

nxdmsandkaskdjaqd

I am still learning about P2P and have just opened accounts with Lendy and Moneything. One key difference I have already noticed between these 2 providers is that Lendy have some 50 loans available, but Moneything have none. Is there a specific reason for this stark difference?

masonic

nxdmsandkaskdjaqd wrote: »

I am still learning about P2P and have just opened accounts with Lendy and Moneything. One key difference I have already noticed between these 2 providers is that Lendy have some 50 loans available, but Moneything have none. Is there a specific reason for this stark difference?

I think it's really a case of quantity vs quality. It would be worth having a read of the specific "SavingStream" thread to understand why there may be caveats around a number of those available loans at Lendy. There are a couple of new loans close to launching at Moneything, which tends to liven up the secondary market.

elephantrosie

which is riskier- shares or p2p?

masonic

elephantrosie wrote: »

which is riskier- shares or p2p?

It depends on the shares and the P2P (and on your diversification). It also depends on what type of risks are significant to you.

Broadly, if thinking about loss potential, I'd consider asset backed P2P to be medium risk, while typically S&S investments are higher risk, but there is a lot of variation within each asset class.

donerkebab

TheShape wrote: »

It's a shame that the ISA rules are so restrictive. I have a Lending Works IFISA (opened 16/17) and would like to open a FS IFISA and a Moneything IFISA as and when available. I might possibly wish to open others in the future.

Funding them is not going to be straightforward as I'm going to need to plan for transfers of previous years Cash ISA money to fund them effectively. Even my previous years ISA money is actually in other accounts which will need returning to my flexible cash ISA prior to then being transferred out to the IFISAs. No more straightforward drip-feeding into multiple p2p platforms.

This inconvenience is, of course, the price I (we) have to pay for receiving a significant tax saving on the interest.

I do wonder if it will lead some to concentrate money into perhaps too few platforms as they might subscribe only to one/few IFISAs and not diversify especially if no ISA subscriptions from previous years are available for transfer.

I am interesting in transferring previous ISAs in - of the IFISAs available are
a) none protected by FCFS at all?
b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?

mr._prude

Say you opened an IF ISA with small amount but did not invest in any loans as u realised the platform was keak. Can you close it down and open another IF ISA in the same year with a different provider?

TheShape

donerkebab wrote: »

I am interesting in transferring previous ISAs in - of the IFISAs available are
a) none protected by FCFS at all?
b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?

I haven't checked every IFISA but I'm fairly certain that no p2p IFISA is protected by the FSCS, your capital is at risk.

The Funding secure front page contradicts itself by stating that they offer up to 16% and lower on the page that they may offer up to 15%. There are currently 3 loans available on the Secondary Market at 15% (effective rate may vary dependent on what you pay for the loan). There are some at 14%, most loan rates are set at 12 or 13% but also as low as 10%.

Edit: FS do offer bonus rates for some loans dependent on the level of investment so the rate offered + bonus can total 16%.

masonic

mr._prude wrote: »

Say you opened an IF ISA with small amount but did not invest in any loans as u realised the platform was keak. Can you close it down and open another IF ISA in the same year with a different provider?

You could transfer your IF ISA to another provider and continue to pay into it. You could not close it and then pay into another elsewhere in the same tax year.

masonic

donerkebab wrote: »

I am interesting in transferring previous ISAs in - of the IFISAs available are
a) none protected by FCFS at all?

Cash deposits may be protected by the FSCS up to £85,000 - depending on how the platform holds these. Investments have no FSCS protection as P2P investments do not qualify for protection.

b) the rate quoted on the Funding Secure site has 16% on one section then up to 12% on another - how is the APR shown on the control panel?

You can get up to 16%. A minority of loans have higher rates and some have bonuses for large investments.