The Innovative Finance ISA Mega-Thread

MadMat

Should we be concerned that P2P rates will plummet when iffy ISAs get going and draw lots of new money into the P2P platforms ??

Froggitt

MadMat wrote: »

Should we be concerned that P2P rates will plummet when iffy ISAs get going and draw lots of new money into the P2P platforms ??

in a controlled volume as we cannot flood the platform with too much cash at once.

My guess is volume will be similar, just in an IFISA in future rather than cash in the past.

I hope they dont lower the quality of loans to increase the number of borrowers.

nushnush

vmp wrote: »

Already have a small amount of money in Zopa and RateSetter. Would love to invest the full amount in a P2P ISA but unfortunately I'm just not brave enough to do so. :eek:

Does anyone have a large amount of money in P2P? If so, how do you feel about the risk?

dont do more than you are comfortable with, we are all different and we all have different levels of tolerance to risk.

N1AK

vmp wrote: »

Does anyone have a large amount of money in P2P? If so, how do you feel about the risk?

Ignoring our residential property we have about 15% of our money in P2P. I think there is a real risk that platforms could fail and that getting your money back off borrowers in those circumstances could be difficult or even impossible. I don't think I'll increase my proportion invested in P2P for that reason.

Nick0101

I've noticed the subject of platform risk has appeared a number of times in this thread. It is true that you are only able to open one Innovative Finance ISA with one platform each year. However, there are a number of platforms that operate similar to funds, and will be introducing their own ISA.

These platforms will take your deposit, and spread them across many different peer-to-peer lending platforms, which will go some way to mitigating your platform risk. I thought this would be worth mentioning.

nushnush

Nick0101 wrote: »

I've noticed the subject of platform risk has appeared a number of times in this thread. It is true that you are only able to open one Innovative Finance ISA with one platform each year. However, there are a number of platforms that operate similar to funds, and will be introducing their own ISA.

These platforms will take your deposit, and spread them across many different peer-to-peer lending platforms, which will go some way to mitigating your platform risk. I thought this would be worth mentioning.

yes but then you are adding another platform so another level of risk, i think investup are going to do this but you still choose the investments yourself, you can only open 1/year for new money but you can open several for transfer ins. so old cash isa's can be split between a number of platforms.

MadMat

Nick0101 wrote: »

These platforms will take your deposit, and spread them across many different peer-to-peer lending platforms, which will go some way to mitigating your platform risk. I thought this would be worth mentioning.

And where do you stand if the "platform of platforms" goes titsup ?

Mat

masonic

MadMat wrote: »

And where do you stand if the "platform of platforms" goes titsup ?

Mat

Indeed. Such a "platform of platforms" would have to be subject to FSCS protection in order to be worthwhile. An existing S&S platform, for example. I'm not yet aware of any such company operating in this area yet.

grey_gym_sock

if you don't want to put the full ISA allowance in a single IF platform, 1 approach is to put as much of the allowance as you're prepared to in 1 IF platform, and the rest in an S&S ISA. then, next tax year, do the same thing with a different IF platform.

as has been said, you also have more options if you have cash which can be transferred from earlier years' ISAs (either cash ISAs, or S&S ISAs if you are happy to transfer cash out of them).

BobbieC

Very helpful information. Is an IFISA safer than a stocks and shares ISA, however? Is there anywhere this is assessed?