P2P - Ratesetter

Carolinemjs

I'm thinking of opening a Kufflink account would anyone like to refer me and get the bonus?

Psyduck1980

jscol wrote: »

What other platforms would people recommend if I want to gently experiment a little more with p2p? I presently have more cash than I should have and need to look at other opportunities.

I'm no expert and I've only been using P2P sites for 6 months or so but I am earning 8.1% on Funding Circle. It does have a significantly higher risk of default/bad debt but you can choose a lower risk portfolio than the one I have and the returns are still much better than RateSetter. I agree with your first post by the way - the rates on RateSetter are really poor and it only becomes a worthwhile investment when you factor in the £100 bonus.

MallyGirl

Carolinemjs wrote: »

I'm thinking of opening a Kufflink account would anyone like to refer me and get the bonus?

Take a trip to the Referrers board - plenty on offer there

https://forums.moneysavingexpert.com/forumdisplay.php?f=42

max11

bxboards wrote: »

I think I use around 10 P2P sites in total - I've avoided the ones with lots of defaults, ie Lendy / Moneything / Funding Secure as I don't trust a lot of the valuations, and there too many property development loans for my liking.

Hi,

excuse me if it is a stupid question, but how do you find out about the defaults ?

MarkFromCornwall

max11 wrote: »

Hi,

excuse me if it is a stupid question, but how do you find out about the defaults ?

It's not a stupid question but the answer will vary from one P2P platform to another. With Funding Circle, for example, on the main screen, under "all time earnings summary" there is a figure for bad debt and, further down, under "recent loan comments" there are details of problems with individual loans, such as late payments and defaults.

max11

I understand, thank you. I wonder if the various platforms are really honest in disclosing all the defaults?

firestone

max11 wrote: »

I understand, thank you. I wonder if the various platforms are really honest in disclosing all the defaults?

Think most are in that platforms such as Ratesetter which have a provision fund show a percentage rate for defaults and most allow you to download the loan book.Others that let you pick your own loans or do not have a provision fund have to show full details as you would not be able to withdraw money you had in that loan so has to be shown(and probably also show the loan book).
What may not be so clear is how they are dealing with the defaults and how soon money if any will be obtained

Trixabell

I am wanting to start investing for a better return than what banks are currently offering. I have read quite a few threads but I am a novice to all this so feel a bit baffled to be honest.

I only have small regular amounts to invest so which would you say be best place for me to start?

Any advice would be greatly appreciated

taylornj

Trixabell wrote: »

I am wanting to start investing for a better return than what banks are currently offering. I have read quite a few threads but I am a novice to all this so feel a bit baffled to be honest.

I only have small regular amounts to invest so which would you say be best place for me to start?

Any advice would be greatly appreciated

As banks offer 5% in regular savers for example £250/month at Nationwide at 5%. What do you mean by small amounts.


You might struggle to get that in the current markets at RateSetter. When I looked rate are 2.7% rolling, 3.1% 1yr, 5.3% 5yr.



Then there is the question of access, to get 6% or over your looking at the 5yr loans and setting your own rate waiting for loan to be matched, but if you want access it will cost you a 1.5% fee so will drop your return if you sell out early dropping you below the 5% from regular savers. The only reason to use RateSetter is the cashback offers £100 or £110, and investing £1000 for a year, I invested @ 5.4% in the 1yr market that gives a 16.4% return for the year with the £110 cash back offer.



Assetz Capital might be better they offer 4.1%, 5.5%, and 6.25% without fees for selling loans. These all have a provision fund. You can get higher in the manual lending but there is no provision fund.


Simply put RateSetter doesn't compare well to Banks for small regular amounts.