Peer-to-peer lending sites: MSE guide discussion
Options
Comments
-
The thing I hate about Ratesetter is when a loan is redeemed early, eg one priced at say 6.2% on the five year market, and when it comes to re-investment, you take pot luck with the going rate, currently less than 4%.
Surely they should protect your original rate in some way....eg presumably the redeemeer has had to pay a penalty for early redemption, or has paid well over the 6.2% for the life of the loan.illegitimi non carborundum0 -
The thing I hate about Ratesetter is when a loan is redeemed early, eg one priced at say 6.2% on the five year market, and when it comes to re-investment, you take pot luck with the going rate, currently less than 4%.
Surely they should protect your original rate in some way....eg presumably the redeemeer has had to pay a penalty for early redemption, or has paid well over the 6.2% for the life of the loan.
But that would reduce their profits.0 -
Their profits would be the same as if the 6.2% loan hadnt been redeemed.
This way, they will reduce their investors.
I've put my money into a 5 year contract at 6.2%. I expect that rate to be honoured.illegitimi non carborundum0 -
any other platforms to recommend? i need to diversify my investments in p2pAnother night of thankfulness.0
-
Their profits would be the same as if the 6.2% loan hadnt been redeemed.
This way, they will reduce their investors.
I've put my money into a 5 year contract at 6.2%. I expect that rate to be honoured.
I'm not using Ratesetter (not likely to at the rates they are offering) but isn't early repayment risk just another risk you take with p2p. My understanding from a brief look at the Ratesetter site is that there are no penalties for the borrower for early repayment so as a lender you simply receive your capital back and reinvest it as you see fit. It's not the same as a five year fixed deposit account with your bank.0 -
I'm not using Ratesetter (not likely to at the rates they are offering) but isn't early repayment risk just another risk you take with p2p.
I completely agree, but shouldn't Ratesetter be splitting up say one £2000 investment into many smaller loans "under the hood". That way if one gets repaid its only a partial amount. Seems like if you put a chunk into a market they just match it to one loan. I might be wrong of course.0 -
fun4everyone wrote: »I completely agree, but shouldn't Ratesetter be splitting up say one £2000 investment into many smaller loans "under the hood". That way if one gets repaid its only a partial amount. Seems like if you put a chunk into a market they just match it to one loan. I might be wrong of course.
It would be preferable to have your investment divided between a decent/large number of loan parts. I'm not sure how Ratesetter handles that.0 -
I'm using Crowd2Fund which I quite like. It's got a clean app that I use whilst on the go, and the key info is supplemented by good general information. Mostly, I've liked the diversity of the businesses to invest in - I've got a mix of Spanish slate mining, fireplaces, and Christmas gifts investments at present!0
-
elephantrosie wrote: »i see not many people are into P2P. ... there are only 2000 investors that uses ablrate.
The oldest P2P lender, Zopa, says that since 2005 £2.3 billion was lent by their 76,000 lenders.
To put that into context, 12,900 people used Venture Capital Trust investments in the 2014-15 tax year, 44% invested no more than £10,000 and the total invested was £402 million.0 -
That's an old number, there were at least 3,000 by April 2017 based on the borrower ID numbers in secondary market deal contracts. Your own borrower ID number at the top right of the screen will tell you how many joined before you but don't say what that number is. Since Ablrate started £21 million of lending has been done.
The oldest P2P lender, Zopa, says that since 2005 £2.3 billion was lent by their 76,000 lenders.
To put that into context, 12,900 people used Venture Capital Trust investments in the 2014-15 tax year, 44% invested no more than £10,000 and the total invested was £402 million.
I wonder how many of those 76,000 lenders are still active though. I suspect that many 'early adopters' like me, are no longer actively lending through Zopa;)0
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards