P2P: Ablrate

Bazofts_Revenge

elephantrosie wrote: »

am i right that there is transfer out fee in ablrate

At 14% return are you really bothered about a Transfer out fee.

I read all the Terms and Conditions yesterday can't say I noticed a transfer out fee.

takesyourchances

elephantrosie wrote: »

am i right that there is transfer out fee in ablrate

To transfer an ISA out of Ablrate to another provider it is £100, if I read correctly the Ablrate rep on the P2P forum said that is what they are charged.

TheShape

Bazofts_Revenge wrote: »

At 14% return are you really bothered about a Transfer out fee.

I read all the Terms and Conditions yesterday can't say I noticed a transfer out fee.

Term 7.2 states there is a fee of 100(£) to transfer to another ISA provider.

anselld

Drp8713 wrote: »

Thanks James. I am going to start filling my boots in the secondary market then and try to get as much of the £2k invested as soon as possible.

Are you adverse to paying the small premiums on some secondary loans?

It seems better to pay the premium as the interest rates more than cover it, as opposed to sitting in cash at 0%?

There is a slight risk in paying a premium on SM and relying on the interest rate to compensate...

The calculated yield assumes the loan will run to full term. However, borrowers do sometimes repay significantly early. So if that happens you have paid a premium and then been left insufficient time to accumulate the overall yield expected.

bigadaj

Bazofts_Revenge wrote: »

At 14% return are you really bothered about a Transfer out fee.

I read all the Terms and Conditions yesterday can't say I noticed a transfer out fee.

Probably need to look a little more carefully.

They charge a quarter of your current investment, not something the potential 14% on offer would compensate for really.

justme111

elephantrosie wrote: »

are we only allowed one IFISA per year?

I was corrected. If one wants to move money from current year IFISA one has to close it altogether . One can not do it partially. But previous years IFISA or any other IFA'S money can be redistributed into as many this year's IFISAs as one wants to.

Bazofts_Revenge

bigadaj wrote: »

Probably need to look a little more carefully.

They charge a quarter of your current investment, not something the potential 14% on offer would compensate for really.

I don't have the ISA yet so £200 doesn't affect me. I am aiming to have about £20-50k in there in about 10 years time. I will have to start to increase my average investment if the loan book doesn't grow much or go for an additional P2P site to spread the risk. Once I realised the ISA wasn't for me I skimmed it for anything of potential interest such as Transfer on death etc. Missed the exit charges though so thanks for pointing them out.

jamesd

You don't have to close an ISA that has current year money when transferring, just transfer all of the current year money. An older version of the guidance notes for ISA managers said close but for years now it's just transfer out all of the current year. The guidance notes even include examples and extensive descriptions of such transfers.

So far as secondary market premiums go I've been content to pay them, bearing in mind the early repayment risk.

economic

Bazofts_Revenge wrote: »

I don't have the ISA yet so £200 doesn't affect me. I am aiming to have about £20-50k in there in about 10 years time. I will have to start to increase my average investment if the loan book doesn't grow much or go for an additional P2P site to spread the risk. Once I realised the ISA wasn't for me I skimmed it for anything of potential interest such as Transfer on death etc. Missed the exit charges though so thanks for pointing them out.

i have around 30k in P2P (about 4% of my net worth) spread across 9 platforms. key thing is spreading the risk. i wont be increasing my exposure to P2P given it is highly illiquid and still very new. i continue to make adjustments and move money between the platforms in order to optimise risk-reward. i try to have more money in the auto P2P since i dont really want to spend too much time on it (its about effort vs reward as well) and they are easy for diversification (manual ones take so long if you want more diversification).

Drp8713

I had my reservations about P2P, mainly that I couldn't place it on the risk scale.

Having thought about it more, I feel have rated each loan as similar in my mind to the risk of buying a single small cap share. I know this is a bit vague, as small cap shares could grow infinately, or go bust, whereas a loan is for a defined return and could default. Share prices are not always asset backed, whereas these loans are, shares are a long term hold whereas loans are usually shorter term and have a set end date.

I admit its not an exact science, but its where I have placed it on the risk spectrum, others will im sure disagree.

So by spreading my money over pretty much every loan on their book, I feel like I have a concentrated nano cap equity fund level of risk. I know a nano cap corperate bond fund would be more accurate but I feel the risk level is too high to compare it to a bond fund.

I think 10-14% returns are about right to compensate for that level of risk. People who P2P for 3% I think are taking a big risk for a small return.

I have been impressed by Ablrate since I signed up yesterday.

Easy to sign up, good information on the loans, I like the secondary market, was very quick to get invested, can fund by debit card, can see all scheduled repayment dates and amounts clearly, get an email each time a payment is received.