which mortgage should I overpay?

jamesd

Thrugelmir wrote: »

How much of your money are you prepared to lose?

That's not really the usual experience, you know. I made around £1600 last tax year and likely around £3600 this year from using two P2P places. My current interest is running at around £400 a month, not allowing for bad debt, which isn't unreasonably high. Neither of which I recommend for new money because returns for new money being invested at them now aren't as good as available in other places. That's OK for me since I have loans at the older rates.

At the place where most of my P2P money is, there's about £1,050 of 60+ days late, defaulted, debt. More than £5,500 of interest and penalties paid to me. Total lending about £37,000 and current about £20,000. Much of the defaulted debt will end up recovered, probably 50-80% of it plus interest and penalties. £400 a month in interest on £20,000 outstanding loans is not bad at all even with some bad debt.

The mainstream UK places don't pay this much, they are doing more in the 5-10% range but often with protection funds that mostly eliminate bad debt concerns. I tend not to like that because the "insurance" has a cost that lenders end up paying indirectly.