P2p question

Fatbritabroad

I have two lots of p2p savings at the moment, ratesetter with 2000 in for the bonus and ablrate in an ifisa with just over 3k in. This represents about 10% of my non pension net worth. I have a stocks and shares isa with about 25k in it as well and cash of about 10k which I'll be building back up having eaten into my emergency fund recently! This is still about 4 months money for me . This is in the highest interest accounts I'm willing to get without having too much faff!

I'm considering increasing the p2p element as I get a large bonus in Jan, about 11k after tax. I would normally stuff the lot into my pension but a) even on modest gains I'm on track to breach the current lifetime allowance in my 50s (I'm 37) assuming it's remains as is, and b) and more importantly although keen to reduce tax I want to start increasing my non pension savings for the flexibility (I aim to try to get to 100k in the next 5 years) I'd by looking to put maybe 5k in p2p with the rest in cash to increase my buffer

Happy to take on more risk but would also like access to this if required in the unlikely event that my cash savings aren't enough. Not instant but if I needed the money I would like to be able to get it in a month or 2. My question is which in the groups opinion is 'lower risk' or is it all risky being p2p

My initial perception just based on rate is that ratesetter is lower risk using the rolling g account but in the groups considered opinion is this too simplistic a view? . Ablrate is asset backed which to me means you're more likely to get your money back eventually in the event of default. Their due diligence seems good as well and defaults are low. Obviously the rates are alot more attractive as well as the ISA wrapper but I'm conscious not to over extend myself. Thoughts welcome

whynobeards

Have you considered the Lifetime ISA? There is the penalty for early withdrawals, but in an emergency it would be accessible and once you turn 60 it is more flexible than pension savings. N.B. I am not in your situation so do not know if this is completely unsuitable for you for whatever reason.

In terms of peer to peer options (of course the whole p2p set up means it is more risky than cash savings...), I'll give you a run down of accounts that I have used in the past:

LendingWorks - Fairly "low-risk" as it is insurance backed against sudden downturns as well as having a reserve (provision) fund to cover defaults - however these are 3 year (4%) and 5 year (5%) terms: you can sell loan parts to other investors for a 0.6% fee (I've never tried selling so I don't know how easy - I suspect fairly easy at the moment as lots of investors are looking for good returns). [£50 bonus available if referred by a member]

GrowthStreet - 'good' risk offset by loss provision fund - 5% - rolling 30 day contracts (although I spent several months waiting to be matched with loan earlier this year, but the market seems to have improved this month.

AssetzCapital - 'good' risk offset by provision fund - 4%+ for 30 day access account.

Landbay - property backed and a new provision fund - 3% but on long term (25 year!) loans so resell depends on market conditions but I've always been able to sell within a couple of days. [£50 bonus available if referred]

PropertyMoose - OK risk as property backed - 7% for 1 year loans - reselling possible depending on demand.

FundingCircle - no provision fund (the more you invest the easier it is to diversify and spread the risk yourself though) - 7% for loans up to 5 years, reselling possible depending on demand.