LendingWorks ISA - whether to reinvest repayments?

itm2 · 9 April 2018 at 3:19PM

I'm about to invest in an ISA with Lending Works, and need to decide whether to automatically reinvest any repayments. My question is: if I invest in the 5 year plan, does automatic reinvestment mean that I will always have funds locked away for 5 years, unless I choose to pay the early withdrawal fee?

I was wondering what others were choosing to do with their repayments, and what the implications were for the liquidity of their investments?

firestone · 9 April 2018 at 3:35PM

itm2 wrote: »

I'm about to invest in an ISA with Lending Works, and need to decide whether to automatically reinvest any repayments. My question is: if I invest in the 5 year plan, does automatic reinvestment mean that I will always have funds locked away for 5 years, unless I choose to pay the early withdrawal fee?

I was wondering what others were choosing to do with their repayments, and what the implications were for the liquidity of their investments?

The repayment does not have to go in the same product so you could move it to the 3 year. Also within your account page you can set a split between 3 & 5 years i.e 100% in one or 60/40 etc or withdraw to bank

TheShape · 9 April 2018 at 3:43PM

If you choose to re-invest in the 3 or 5 year loans, your funds will be tied up in those loans for that period unless you choose to pay a fee to withdraw.

You can choose to withdraw either interest payments or capital and interest as it's repaid. I previously had my account set to reinvest all repayments in 5 year loans but have been withdrawing all repayments for the last few months as I am reducing my p2p investments.

will-he-payitoff · 17 April 2018 at 4:40PM

I previously had my account set to reinvest all repayments in 5 year loans but have been withdrawing all repayments for the last few months as I am reducing my p2p investments.[/QUOTE]

Any particular reason why?

TheShape · 17 April 2018 at 7:01PM

I previously had my account set to reinvest all repayments in 5 year loans but have been withdrawing all repayments for the last few months as I am reducing my p2p investments.

will-he-payitoff wrote: »

Any particular reason why?

I've got approx £9k invested with p2p lender Collateral who are currently in administration. I don't know when or if I'll have access to these funds.

I had been intending to reduce my p2p investments to fund my Lifetime ISA but am having to reduce them further than previously planned due to to the £9k capital that is inaccessible and the loss of approx £90 pm in interest payments.

trevman · 18 April 2018 at 9:54AM

TheShape wrote: »

I've got approx £9k invested with p2p lender Collateral who are currently in administration. I don't know when or if I'll have access to these funds.

Would you consider writing a post to document your experience and update with correspondence from the administrators? As alot of people are using P2P but there is not much coverage about what happens with administration.

LendingWorks ISA - whether to reinvest repayments?

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