P2P newbie

masonic

bigfreddiel wrote: »

So Bihari, what would you do?

The obvious answer is read the main P2P thread and discover that there are options that are arguably lower risk that pay higher rates.

6022tivo

I plan to see how ratesetter goes with £1k. I see I get £100 bonus added by ratesetter?? Is this the case, any T&C pitfalls with this?


Plan to reuse zopa when the isa is announced.

bigadaj

6022tivo wrote: »

I plan to see how ratesetter goes with £1k. I see I get £100 bonus added by ratesetter?? Is this the case, any T&C pitfalls with this?


Plan to reuse zopa when the isa is announced.

The rate setter introductory bonus is useful, will give you a net 13-14% on the sum so worthwhile and I've got just that amount in there.

Otherwise I'm slowly building up, currently less than £5k with a range of providers, and this figure wil increase assuming a reasonable deal flow rate as banks continue to reduce their interest rates in the coming months.

Currently averaging 11.5% on secured loans, though when borrowers repay early it is a bit annoying, better than a default I suppose.

agent69

bigadaj wrote: »

The rate setter introductory bonus is useful, will give you a net 13-14% on the sum so worthwhile

I think RS is going down hill and the introductory offer is the only reason to invest. I am running down my holding because:

• Rates are plummeting
• The coverage ratio of the provision fund is plummeting
• RS use short term borrowing to fund long term lending
• RS lend your money to other businesses, which in turn lend it onto 3rd parties
• The insidious use of the 'lend it now' rate, without pointing out that a far higher rate can be achieved if you wait a day or two.

bigadaj

agent69 wrote: »

I think RS is going down hill and the introductory offer is the only reason to invest. I am running down my holding because:

• Rates are plummeting
• The coverage ratio of the provision fund is plummeting
• RS use short term borrowing to fund long term lending
• RS lend your money to other businesses, which in turn lend it onto 3rd parties
• The insidious use of the 'lend it now' rate, without pointing out that a far higher rate can be achieved if you wait a day or two.

It's pointless in any case, I'm taking the free £100 and moving on.

Ratesetter and Zopa just offer rates that are too low for the level of risk. Combined with a lack of transparency, little detail on due diligence and the fact that most loans are unsecured then I'd not progress with those platforms.