Peer-to-peer lending sites: MSE guide discussion

Biggles

TheShape wrote: »

elephantrosie, can I ask that if you receive replies from posters that you find useful, that you press the 'thanks' button under their reply, it's a nice way to acknowledge when someone has been helpful

She seems to have ignored that, as well as other help offered since. Yet she's still asking for help/advice!

Seems to have been here seven years without learning anything......

keyboardworrier

I've been bitten by the P2P lending bug!, I'm currently invested in
RS
AC
MT
Octopus Choice
Kufflink (In a small way, mainly due to Quidco cashback)
Lending Works

I'm not sure if adding extra platforms would be wise for diversification reasons or if I am at a sensible level. How many platforms are others using?

fun4everyone

I am currently invested in 7 plus a small amount in another which is maybe a bit over the top.

Probably 4-5 at most should suffice imo. I will get down to that amount long term. I look at/try a lot of platforms and stick around where I feel I can trust. The latest one I added was Collateral. Seems ok. MoneyThing is probably my favourite. I did enjoy collecting my RS welcome bonus then leaving the next day haha.

keyboardworrier

fun4everyone wrote: »

I am currently invested in 7 plus a small amount in another which is maybe a bit over the top.

Probably 4-5 at most should suffice imo. I will get down to that amount long term. I look at/try a lot of platforms and stick around where I feel I can trust. The latest one I added was Collateral. Seems ok. MoneyThing is probably my favourite. I did enjoy collecting my RS welcome bonus then leaving the next day haha.

Thanks, that does seem sensible. I will likely do the same - I am well over exposed in RS currently so may find another platform or two and stop using others in time. The RS bonus got me into P2P lending, and I would stay with them if their rates weren't quite so bad!

jamesd

elephantrosie wrote: »

only one new loan on ablrate. maybe i should withdraw my money and transfer to MT

Several new ones coming up and a dozen or two on the secondary market, more than there are at MoneyThing even now. With both places a degree of patience is needed to get the money invested with lots of diversification, just buying into the new loans as they arrive. MoneyThing is a handy tool because it's usually fast to sell and get money out so you can use it to park money that you might intend to invest at Ablrate later.

jamesd

takesyourchances wrote: »

@Jamesd If you don't mind sharing, for the 10% plus P2P loans do you use any other platforms outside of Ablrate and Moneything and how many P2P platforms do you use in general?...

I am thinking a bit more to draw these down this way, but with the higher rate platforms (10% plus) I am just using the three at present, MT, Collateral and Ablrate and wondering is that enough for platform spread.

I currently have money in Ablrate and MoneyThing mostly, a significant but declining amount in Bondora (not recommended, I'm withdrawing as payments come in) and a pittance at Zopa (OK, just rates too low to be interesting to me). I expect to use Collateral and FundingSecure this year, I like to take a long time to study and learn but you can tell I'm fairly comfortable with them because I've been mentioning them to others as worth a look.

I might use BondMason solely because of its SIPP but need to investigate more what happens if you want to transfer a pension pot that is in drawdown and has defaulted loans in it.

First pick platforms that you think are highly trustworthy with reliably described loans. Then I think that for most people it's best to use five or more platforms because of the annoyance if a platform fails. But if it's not a high percentage of their wealth fewer but reliable ones could be OK.

For me the big need to diversify more will come next year when I take pension tax free lump sums. That will raise the amount in P2P as a percentage of my assets to a level where I must be more diversified. Or alternatively if I put pension money into P2P before that. I wouldn't really want to target more than 20-30% of my total wealth in one platform long term.

It's also worth noting that I have quite a high risk tolerance and there are lower paying platforms around with protection funds that still pay more than RateSetter or Zopa. Some people might well want to make more use of those than I do.

Because of all the recent activity at MoneyThing my mean interest rate per pound invested there is now about 12.7%, with Ablrate at about 12.8%. That's raw rates before any allowance for bad debt. With a lower diversification level than I suggest most people use. I still normally keep the amount per borrower below my projected annual interest earnings from P2P but that's quite a lot when it's 12% of money invested.

takesyourchances

jamesd wrote: »

I currently have money in Ablrate and MoneyThing mostly, a significant but declining amount in Bondora (not recommended, I'm withdrawing as payments come in) and a pittance at Zopa (OK, just rates too low to be interesting to me). I expect to use Collateral and FundingSecure this year, I like to take a long time to study and learn but you can tell I'm fairly comfortable with them because I've been mentioning them to others as worth a look.

I might use BondMason solely because of its SIPP but need to investigate more what happens if you want to transfer a pension pot that is in drawdown and has defaulted loans in it.

First pick platforms that you think are highly trustworthy with reliably described loans. Then I think that for most people it's best to use five or more platforms because of the annoyance if a platform fails. But if it's not a high percentage of their wealth fewer but reliable ones could be OK.

For me the big need to diversify more will come next year when I take pension tax free lump sums. That will raise the amount in P2P as a percentage of my assets to a level where I must be more diversified. Or alternatively if I put pension money into P2P before that. I wouldn't really want to target more than 20-30% of my total wealth in one platform long term.

It's also worth noting that I have quite a high risk tolerance and there are lower paying platforms around with protection funds that still pay more than RateSetter or Zopa. Some people might well want to make more use of those than I do.

Because of all the recent activity at MoneyThing my mean interest rate per pound invested there is now about 12.7%, with Ablrate at about 12.8%. That's raw rates before any allowance for bad debt. With a lower diversification level than I suggest most people use. I still normally keep the amount per borrower below my projected annual interest earnings from P2P but that's quite a lot when it's 12% of money invested.

Thank you very much James for taking the time with that, I really appreciate it. It is very interesting to read from you experiences with the platforms and direction you are taking things in with your P2P and it helps with the learning and looking ahead as investment in P2P increases.

I don't mind taking on risk as I am diversified also in other assets, I am also of the mindset doing nothing is a risk or sitting in depreciating cash and I feel the higher percentages are worth the risk with the "right platforms" so I am also trying to be selective with platforms and at the same time, I understand there is risk and I am also conscious of diversification as investment increases.

I have not looked into Funding secure very much, but I will have a look as well, but I feel I have enough to build up still with MT and Collateral and Albrate I will be building up further too once I get fresh funds again to add. It is good to have another in mind for when I feel I need to spread funds again.

I am still toying with my Ratesetter and Funding Circle to either drawdown or keep what I have in and just focus on the other 3 for the time being.

Certainly when you add your pension lump sum in, I can see the need to spread things around more and I will follow with interest and thanks once again for your reply.

cinereus

Anyone else surprised by Zopa's statement today regarding retiring Safeguard?

The fund was designed to ensure that investors only paid taxes on the net income they received from Zopa borrowers. In 2015 the tax laws were updated: enabling investors to claim for relief on losses from bad debt. As a result, the primary reason for Safeguard was removed, and we have taken the decision to retire the fund.

elephantrosie

do you guys keep a spread sheet of all loans on p2p?

KTF

I keep details of the amounts and returns but not a blow by blow account of all the transactions.

You can get this detail on platforms like assetz capital and with a bit of tweaking and a pivot table it is useful to see how exposed you are to each business that you have lent to.