Investing £100k for 3/4 years

bigadaj

jamiesalisbury wrote: »

How about this as a rough plan - £50k split between Savingstream, Funding Circle and either Ratesetter or Zopa.

Then the other £50k into a regular savings account, although I can't currently see where I can get more than 1.5% interest on this.

Too risky? Too safe?!

Well you can get £50k into sole current accounts, and £130k in as two people, average return around 3.5%. Some providers are pulling regular savers but it's still possible to get a couple of thousand or more a month in at up to 6%.

I wouldn't touch Zopa or rate setter, I've got £1k in rate setter just for their 10% bonus for a year. They offer low returns and how the money is lent isn't clear or generally secured.

I'm using Moneything, Savingstream and Ablrate, all secured lending, with rates at 10-14% typically. Savingstream have upset some people by being unclear on some aspects of their loans, and how they are treating one default they've incurred, Ablrate have a limited number of deals. Diversifying across loans and okay forms is essential, if you limit loans to £500 then that means 100 loans which might take time to get into the market.

Moneything seem to have a good deal flow and is responsive, but you wouldn't want all your money on one platform. I've not used funding circle, think I had a look and didn't appeal.

Edit - have a read on the p2p independent forum, it's specific with some experienced people and many of the providers monitor and supply responses.

Gurberly

Certainly look into p2p but be aware there are risks...

You cannot treat Saving Stream or any of the p2p lenders as a short term deposit account.

Not saying don't, just to be very aware that there are reasons the rates are high.

John

Eco_Miser

jamiesalisbury wrote: »

Then the other £50k into a regular savings account, although I can't currently see where I can get more than 1.5% interest on this.

A Regular Savings Account is not a normal savings account which earns around 1%, but an account into which you save regularly (ie monthly) and earn up to 6% AER. The catch is that the monthly savings amount is limited to £500 or less. However you can open such accounts with many institutions, and save up to about £2000 a month. See https://forums.moneysavingexpert.com/discussion/608697

yorkie3

P2P is a good option if you're prepared to do your research. I'd be wary of FC though unless you have a stomach for lots of defaults. I've been investing across MT, FS, SS and RS for the past 18 months and I'm very happy with performance. The majority of my investments are in Saving Stream.

You will be required to read valuation reports and keep an eye on things to ensure you know what you're doing. And P2P independent forums are also invaluable.

bigadaj

yorkie3 wrote: »

P2P is a good option if you're prepared to do your research. I'd be wary of FC though unless you have a stomach for lots of defaults. I've been investing across MT, FS, SS and RS for the past 18 months and I'm very happy with performance. The majority of my investments are in Saving Stream.

You will be required to read valuation reports and keep an eye on things to ensure you know what you're doing. And P2P independent forums are also invaluable.

Savingstream seem to have a lot of available loans currently, which is unusual.

They have one in default and several which have extended their loan period, those I've looked at seem to be a result of failing to source cheaper funding or sell a property or asset.

It's made me a bit wary about them at the moment, they don't seem to have handled the default well both practically and from a pr perspective.

Though compared to Moneything and Ablrate they certainly have a lot more availability.

It would be useful for them to clarify the position with the provision fund as well, it's just a pot that may be used rather than a guarantee, even for a percentage of the loan. I understand that the whole pont is that the capital isn't guaranteed, but potentially easily provision would calm some situations and act as a bridge until the security can be sold.