Peer to Peer lending

Ryan_Futuristics

Thrugelmir wrote: »

Very simply rate correlates to risk.

Short dated Gilts currently yield less than 1% to maturity.

That puts into perspective the potential downside.

Well today's gilt yields have been heavily skewed by QE - so I don't think you can make the direct comparison (although P2P could wind up in a similar situation)

I feel P2P lending's more akin to the high-yield bond market - lending to smaller/riskier prospects at rates around 10%, and returning a slightly more volatile 7-8

TattyBear

Have now had a measly couple of hundred quid at Ratesetter sitting unmatched on the 3 year market at less than the going rate for nearly 3 days. Bit of a joke really. Am starting to look at other P2P options, although rates are lower at Zopa. Not sure I fancy Wellesley, and certainly don't fancy Funding Circle.

JBond007

Thrugelmir wrote: »

. For any sound business there's cheaper sources of finance available.

What sort of finance are you talking about?

jimjames

If you don't already have investments and have large cash balances could you look into investing in a S&S ISA?

You then have a wide range of options to invest in from trackers to managed funds and shares - not that I'd recommend shares for £5000.

More info on monevator.com and investment in a S&S ISA is far more flexible without being tied in for a set period of time although you should plan for at least 5 years