Best place for small savings

Dan83

12% is better then 6%

masonic

Dan83 wrote: »

12% is better then 6%

"I cannot afford to take any risk with losing any of my £200's"

Will you personally guarantee the OP's P2P investment and interest will be paid back in full and on time for the roof repairs?

Dan83

Some P2P platforms get the monthly interest paid up front, if he 12 month loan parts and sell after 9, he won't loose. P2P isn't rocket science, if the opp was to go into P2P, he should read about the platform of his choice 1st and the opp probably would of worked it out for them selves, the only real risk is the platform going bust.

masonic

Dan83 wrote: »

Some P2P platforms get the monthly interest paid up front, if he 12 month loan parts and sell after 9, he won't loose. P2P isn't rocket science, if the opp was to go into P2P, he should read about the platform of his choice 1st and the opp probably would of worked it out for them selves, the only real risk is the platform going bust.

It's not rocket science, but you certainly don't seem to understand it. In order to sell on the secondary market, there must be someone willing to buy.

Dan83

Thanks for stating the obvious.

I don't know if you use P2P or if you have ever had trouble selling loan parts, but I can honestly say, out of the 3 platforms I use, 2 allow you to sell loans parts, every loan part I have put up for sale, has sold with-in a few hours.

I can't gurantee that's the case for everyone all the time, that's just my experience.

zenshi

Not that it makes any odds but 'he' is a 'she'

I will certainly have a read up on P2P . I'm not averse to risk, just not currently now

masonic

Dan83 wrote: »

Thanks for stating the obvious.

It needed to be stated.

I don't know if you use P2P or if you have ever had trouble selling loan parts, but I can honestly say, out of the 3 platforms I use, 2 allow you to sell loans parts, every loan part I have put up for sale, has sold with-in a few hours.

Yes, I use P2P. I'm invested across 6 platforms that have secondary markets and I've made active use of the SM in 4 of those 6. Under normal conditions I can sell loan parts quite quickly, but I've noted that lenders are becoming more discerning over time and there are certain loans that do not sell quickly. This is the case in all platforms I've invested in.

So what do you suppose happens if the platform you have chosen fails to gain full authorisation from the FCA alongside the others? Or if we enter recession and there is a pickup in defaults? Or irregularities are found in the particulars of a loan into which you have invested? Or the borrower receives a CCJ from another lender? Or something bad happens to the property on which the loan is secured?

I think you are being very naive if you expect to always be able to sell your loans off before they complete.

I can't gurantee that's the case for everyone all the time.

Which is exactly my point.

badger09

masonic wrote: »

So what do you suppose happens if .......

Or if we enter recession and there is a pickup in defaults?

Or irregularities are found in the particulars of a loan into which you have invested?

Or the borrower receives a CCJ from another lender?

All of which led to loss of capital which I, and many other lenders experienced with Zopa in 2008 & early 2009

masonic wrote: »

It needed to be stated.


I think you are being very naive if you expect to always be able to sell your loans off before they complete.

With apologies to masonic for the editing, but I couldn't agree more.

P2P investment is not the same as a bank current/savings/term deposit account and shouldn't be recommended as a similar product.