Is there any P2P lending left.. ??

Albermarle

 and returns are about 10%

This seems dangerously high . The P2P companies that went out of business ( in some cases with big losses for lenders) were nearly all the ones offering double figure interest rates and taking the biggest risks.

The survivors were mainly offering lower rates .

Tantalus86

Albermarle said:

 and returns are about 10%

This seems dangerously high . The P2P companies that went out of business ( in some cases with big losses for lenders) were nearly all the ones offering double figure interest rates and taking the biggest risks.

The survivors were mainly offering lower rates .

the risks are high as well. With SoMo you're lending £5k to a single business as a bridging loan. If the company fails you could potentially lose the lot. So returns of 10% are justified imo.

Tantalus86

Aceace said:

Hi @Malkytheheed, I'm a big fan of P2P. Roughly half my investable portfolio is in it, spread over thirty-odd platforms. Like all investment sectors, some are good and some are not. I've invested in the 3 you've mentioned and would put all 3 in the not good category. The platforms that others have mentioned on here are much better (SoMo, Kuflink). Here are some others that you might like to take a look at: Loanpad, CrowdProperty, CapitalRise, ABLrate, Unbolted, Landlordinvest and Proplend to name a few. 

Of all of them I'd classify Loanpad as the safest to get started with.

I saw someone else on this forum that had ~50 p2p accounts as they're retirement pot. Out of interest what kind of returns are you getting across the p2p section of your portfolio?

Malkytheheed

Grenage said:

P2P returns are what, maybe 5% average return with the risk and hassle of removing money.

An index tracker would probably get around 9% so I'm curious why some find them attractive.

https://dictionary.cambridge.org/dictionary/english/diversification

Aceace

Tantalus86 said:

Aceace said:

Hi @Malkytheheed, I'm a big fan of P2P. Roughly half my investable portfolio is in it, spread over thirty-odd platforms. Like all investment sectors, some are good and some are not. I've invested in the 3 you've mentioned and would put all 3 in the not good category. The platforms that others have mentioned on here are much better (SoMo, Kuflink). Here are some others that you might like to take a look at: Loanpad, CrowdProperty, CapitalRise, ABLrate, Unbolted, Landlordinvest and Proplend to name a few. 

Of all of them I'd classify Loanpad as the safest to get started with.

I saw someone else on this forum that had ~50 p2p accounts as they're retirement pot. Out of interest what kind of returns are you getting across the p2p section of your portfolio?

I've been investing in P2P for 3 years. My capital weighted average annual return is 6.44% (ignoring referral bonuses, cashback payments and accrued interest, and including crystallised losses). I believe that this figure is understated due to the nature of the loans and a recent major adjustment to my strategy. I believe that the underlying rate will be around 8%, but time will tell.
The above figures are a useful guide for me to see how my strategy is performing, but they are not mathematically rigorous as this would be too onerous to calculate from the records that I have. For instance, a platform that I've achieved a high rate of return with, but have subsequently exited, would not have any impact on the average figure since it now has zero (or very small) capital still invested.

Apricota

I've also been investing over the past three years. Across two platforms; on one average interest 10.64% and other 7.9% - this is current. All are chosen from the platforms by myself with large spread.  1st charge if needed.

macman

It's ironic really. When Ratesetter halved the return back in May 2020, I started to pull money out (the return then was 3.1% on Access, but in an IF ISA, so effectively 3.7%). I figured that 1.5% net was a poor return on a product without any FCSC protection. It's taken nearly 10 months to extract the entire investment, and meanwhile, one or two year fixed rate savings bond rates are now below 1% and only going further south. And of course I've lost the tax free status forever.

I shall look back on this as not one of my better investment decisions...

grumiofoundation

macman said:

It's ironic really. When Ratesetter halved the return back in May 2020, I started to pull money out (the return then was 3.1% on Access, but in an IF ISA, so effectively 3.7%). I figured that 1.5% net was a poor return on a product without any FCSC protection. It's taken nearly 10 months to extract the entire investment, and meanwhile, one or two year fixed rate savings bond rates are now below 1% and only going further south. And of course I've lost the tax free status forever.

I shall look back on this as not one of my better investment decisions...

Ratesetter offers a flexible ISA so you could pay back in this tax-year without impacting ISA allowances and transfer elsewhere.

Aceace

Apricota said:

I've also been investing over the past three years. Across two platforms; on one average interest 10.64% and other 7.9% - this is current. All are chosen from the platforms by myself with large spread.  1st charge if needed.

Thanks for sharing @Apricota, would you care to say which platforms you are using? 
I have a large number of platforms with similarly high returns, but I recently added a relatively large amount of funds to the lower rate / safer platforms,  which obviously drags my average returns down. Some of these funds were moved from FSCS protected savings accounts that I used to use for my higher tier emergency funds. I decided that I no longer consider this tier of funds to be necessary for me, so have moved them to the lower end of the P2P spectrum. I do still maintain adequate emergency funds in NS&I. With such a large number of P2P platforms there's always likely to be some that I can access if needed. Despite some of them being constipated due to Covid19, there has always been plenty of liquidity for me throughout the crisis. 

Thrugelmir

Malkytheheed said:

verybigchris said:

P2P was a bubble for years. Rather than fully bursting, it's slowly deflating as the air escapes around all the sticking plasters they've covered it with.

Be thankful you can't open a new account, and run as far away from it as possible.

That is your opinion. I think it could be strong in the coming recovery years. 

When the last person who remembers why P2P isn't always such a great investment has left the building. Then yes the bubble will be reborn again. Unless you understand fully what you are investing in. Always worth giving a wide berth.