P2P: Ablrate

elephantrosie

not strictly exclusive to ablrate, but i wonder how selling and buying on SM affect taxes?

jamesd

Check with each site. The Ablrate answer is at What is the Tax Position?

Good luck with getting an answer from MoneyThing, people have been asking for years and it's always something they are working on but never an actual answer.

takesyourchances

Really pleased with the ease of use of the FISA with Ablrate, I had some interest gathered in my non FISA account and was delighted to see a straight transfer option across to the FISA.

This is great going forward how easy they made it to sweep re-payments and interest across from the standard account into the FISA to use :)

PeakOwl

jamesd wrote: »

P2P liquidity varies a lot. The only assurance is end of loan term if the borrower doesn't default. That can deliver timed liquidity events, as can the places which offer monthly accounts.

But practical liquidity is usually far better than that.

If you want to pay the price both RateSetter and Zopa offer the ability to sell, if there is a buyer, and there usually is within a day or two, though if interest rates have risen you will pay a possibly significant penalty to deliver the current rate to the buyer.

At Ablrate you can probably make anything on the secondary market very liquid by offering a sufficient discount; someone sold many tens of thousands of a pub loan that was otherwise moving slowly in a couple of days by offering discounts up to 4%, I put money in and took more than £10k of that myself.

At MoneyThing there are loans like the pawn shop and art that seldom come up for sale and are highly desired so they sell very rapidly when offered, regardless of market conditions, so far. The AE loans are similar, probably more so now most of theirs have repaid. Rates above 12% also do well.

At Collateral the pawn (bling...) loans are popular and likely to get more so as the market becomes dominated in volume by property.

If you're after bling, I wouldn't recommend Collateral any more. Used to be brilliant, with 2 or 3 loans per day about 6 months ago, but apart from the odd jewellery renewal, there hasn't been a single new jewellery loan for several months now. Pretty clear to me they've had a strategic re-think and like many other platforms have gone the property route (and imo their property loans aren't particularly attractive either).

Fatbritabroad

Possible stupid questions from a p2p noon who's only foray has been ratesetter to get the bonus. Looking at putting about 1000 to 3000 in my ifisa initially. Have invested a couple of hundred in the new loans. Ref other loans on secondary market I was going to invest in small tranches of 50 in a few of them to build my holding. This may have been asked but what due diligence other than checking they aren't necessarily loans in the same companies so you aren't too exposed are people doing or is the fact that I'm spreading so little over so many loans sage enough. This is money I can afford to lose but id rather not throw it away!

Second question ref the premiums on new loans provided the loan has a decent length of time to run and the yield is good is there anything else I should consider with these. Many thanks in advance for your help

PeakOwl

Fatbritabroad wrote: »

Possible stupid questions from a p2p noon who's only foray has been ratesetter to get the bonus. Looking at putting about 1000 to 3000 in my ifisa initially. Have invested a couple of hundred in the new loans. Ref other loans on secondary market I was going to invest in small tranches of 50 in a few of them to build my holding. This may have been asked but what due diligence other than checking they aren't necessarily loans in the same companies so you aren't too exposed are people doing or is the fact that I'm spreading so little over so many loans sage enough. This is money I can afford to lose but id rather not throw it away!

Second question ref the premiums on new loans provided the loan has a decent length of time to run and the yield is good is there anything else I should consider with these. Many thanks in advance for your help

If you haven't already done so, I would join the P2P independent forum (easy to find if you google). There are forums on all the different platforms there, including Ablrate, with most/all loans actively discussed and a fair bit of 'collective DD' conducted. Its a tremendous resource of experienced lenders and they rarely leave any stone unturned.

Generally, I'd check that I'm not over-exposed to one company (on Abl a lot of the loans are related to ACF), check that the security is reasonable (LTV not too high), check their repayment records, read their accounts etc etc..

One other thing to consider with Abl's IFISA is there's a £100 exit/closure feed, should you ever decide you want to leave, some platforms do not charge anything.

Fatbritabroad

PeakOwl wrote: »

If you haven't already done so, I would join the P2P independent forum (easy to find if you google). There are forums on all the different platforms there, including Ablrate, with most/all loans actively discussed and a fair bit of 'collective DD' conducted. Its a tremendous resource of experienced lenders and they rarely leave any stone unturned.

Generally, I'd check that I'm not over-exposed to one company (on Abl a lot of the loans are related to ACF), check that the security is reasonable (LTV not too high), check their repayment records, read their accounts etc etc..

One other thing to consider with Abl's IFISA is there's a £100 exit/closure feed, should you ever decide you want to leave, some platforms do not charge anything.

Thanks I'll join the p2p forum.

Yes I was aware I'm well under the overall isa limit at the moment so if needed I can just stop paying in in next 12 months and open a new one next year but will bear this in mind in future

Fatbritabroad

PS what other sites are worth considering? I'm on money thing but haven't invested at all yet. I'm aware there's issues with two loans but seems to be sorting these out

PeakOwl

Fatbritabroad wrote: »

PS what other sites are worth considering? I'm on money thing but haven't invested at all yet. I'm aware there's issues with two loans but seems to be sorting these out

Depends whether you need it to be in a tax wrapper or not I guess.

Abundance have an IFISA that's been running for a while now and offer diversity through renewable debentures with some attractive rates (though dealfolw can be slow). Octopus Choice have just launched an IFISA too yesterday, but its not flexible and doesn't allow transfers in yet. Landbay & Lending Works also offer IFISA's among others that might be worth a look

Moneything was my favourite platform, but recent loans haven't been the usual level of quality imo (Paisley was a stinker!). Missing Broadoak's influence imo.

I really like Unbolted, nowadays for 'bling', with its daily loans and provision funds which protect against any potential defaults. Collateral used to be good for jewellery too, but they've taken a strategic shift towards (imo) poor quality property loans.

Then if you are interested in property crowdfunding there's the likes of Property Partner and Brickowner, which allow you to take equity stakes in residential (and in the case of Brickowner) commercial property and take monthly rental payments from the tenants.

Biggles

PeakOwl wrote: »

Moneything was my favourite platform, but recent loans haven't been the usual level of quality imo (Paisley was a stinker!).

Just out of curiosity, Owly, what didn't you like about Paisley (the loan, not the place).

I'm not in it, but always ready to learn about due diligence in this area.