P2P Questions and Observations

Albermarle

Continued....
They do not seem to have gone down the same path as others offering property loans to chancers with unrealistically high interest rates and then wondering why so many defaulted.

Kendall80

I'm trying to get out of P2P. I have 1k left in Lendy unfortunately which looks like a lost cause for now. I've managed to get my Funding Circle balance down to just £100. Many have much more tied up/unavailable in both of those.


In my opinion - its not a good time to be getting into P2P except for perhaps the much lower risk options of zopa/ratesetter. I'm considering the sign up bonus of the latter.

Thrugelmir

Albermarle wrote: »

They do not seem to have gone down the same path as others offering property loans to chancers with unrealistically high interest rates and then wondering why so many defaulted.

Using someone elses money is nothing new. Why risk your own? If the project fails simply start a new one.

Alexland

quirkydeptless wrote: »

I've been contemplating £5000 in Assetz Capital for the £150 sign up bonus (offer ends 30th September).

If you otherwise wouldn't do it then is 3% extra on £5k really worth it?

I only bothered for signup bonuses of at least 10% with no more than £1k required.

Alex

quirkydeptless

Alexland wrote: »

If you otherwise wouldn't do it then is 3% extra on £5k really worth it?

I only bothered for signup bonuses of at least 10% with no more than £1k required.

Alex

Indeed, which is why I'm still mulling it over. I've gone for 10%+ deals (20% with Kuflink!).

In my limited research of Assetz Capital (OK, I read Financial Thing), they seem to have more chance of a long term future that others, so I'd just need them to keep afloat for 15 months to get the equivalent of 8.75% on the 90 day notice account which seems a reasonable risk.

I mean, it's not as though there's any event that's going to cause a major shock to UK property and SME's in the near future is there

Alexland

quirkydeptless wrote: »

I'd just need them to keep afloat for 15 months to get the equivalent of 8.75% on the 90 day notice account which seems a reasonable risk.

Yes the return on Kuflink was the best we had but with this Assetz offer a 7% premium over a normal savings account is a 1 in 14 risk premium of suffering total loss over the period. This feels about right for a P2P platform in an uncertain economy. If you did it enough times with average luck you would get a normal rate of return. I don't really see the point unless you feel you might be lucky this time?

Alex

Flobberchops

I've had an overall fairly OK experience of P2P, and I say this as somebody who was invested in both Collateral AND Lendy! If all of my losses were crystallised right now (and I was immediately able to cash out of all my performing loans) I would have pretty much broken even. That's not much to write home about, but now that through trial and error I've jettisoned some of the turkeys my effective rate is not bad.


Having said that if I knew then what I do now, I wouldn't have invested so heavily or so indiscriminately. Still, that's hindsight for you. I'm winding down most of my platforms except for my IFISA with Ablrate who continue to perform excellently.