Peer-to-peer lending sites: MSE guide discussion

takesyourchances · 18 July 2017 at 8:57PM

Zanderman wrote: »

I got the same email except for the phrase about being matched to those borrowers. Mine said:

I'd be interested in others' views too!

After getting used to P2P more, I felt I preferred more hands on selecting loans myself and against the secured asset loans, that was why I sold out of Funding Circle as unsecured loans and rising defaults and Ratesetter is blind lending and no idea where the funds are going like this update.

So personally, I would rather feed this money back into the asset backed loans on the other 3 platforms I am using and spread it on these.

Interested too in other opinions.

bigadaj · 18 July 2017 at 9:14PM

I withdrew my £1000 and subsequently closed my account after getting the £100 bonus, returns are fine with teh bonus but insufficient without it.

takesyourchances · 18 July 2017 at 10:53PM

bigadaj wrote: »

I withdrew my £1000 and subsequently closed my account after getting the £100 bonus, returns are fine with teh bonus but insufficient without it.

That was my idea to collect the £100, but I have 50 days to go and with the recent update and offer of free sell out, I will forfeit it and hopefully make it back with higher rates on the others I will add it too.

Zanderman · 19 July 2017 at 8:43AM

I am curious that the reaction so far to Ratesetter's announcement has been for people to say they are withdrawing early, even if their investment is just £1000 and they will now forfeit the £100 bonus.

My reading of their announcement is that they are expecting no change - expected rates of default are the same as before and the provision fund is unaffected by the news they are reporting.

So, assuming those statements to be reasonable, why cut and run? Their interest rates are lower than many other p2p but that £100 bonus on £1000 is still exceptional and worth waiting for surely?

So, am I missing something or is the reaction being reported, so far, a little over the top?

I'm even vaguely suspicious that Ratesetter might be wanting to encourage early withdrawals to save them from paying the £100 bonuses....

Over62 · 19 July 2017 at 10:01AM

Zanderman wrote: »

I am curious that the reaction so far to Ratesetter's announcement has been for people to say they are withdrawing early, even if their investment is just £1000 and they will now forfeit the £100 bonus.

My reading of their announcement is that they are expecting no change - expected rates of default are the same as before and the provision fund is unaffected by the news they are reporting.

So, assuming those statements to be reasonable, why cut and run? Their interest rates are lower than many other p2p but that £100 bonus on £1000 is still exceptional and worth waiting for surely?

So, am I missing something or is the reaction being reported, so far, a little over the top?

I'm staying with Ratesetter at least until the bonus is paid. Whether this is the right decision, time will tell.

Zanderman wrote: »

I'm even vaguely suspicious that Ratesetter might be wanting to encourage early withdrawals to save them from paying the £100 bonuses....

This has also crossed my mind.

SomeRandomGuy · 26 July 2017 at 10:24AM

Hi everyone,
I've read through the p2p guide on MSE but I find this is still all a bit confusing.

The return rates seem almost too good to be true compared to what a savings account or bond earns (none of which even beat real inflation as far as I can tell). My understanding is that with p2p lending the risk is obviously losing all your money, but that seems quite rare from what I can work out?

So my question is this really - for someone with very modest savings is it worth dipping a toe in the p2p waters? Even if I only have say £1000 that I am willing to risk?

justme111 · 26 July 2017 at 10:55AM

How do you know losing all the money is rare ? What do you consider "rare "? Of course it is worth exploring with money you could afford to lose.

nushnush · 26 July 2017 at 11:01AM

depends on your attitude to risk, how much you need the £1000, how long you can be without the money, i have a number of friends that use P2P for small amounts but they understand it has a risk attached to it.

SomeRandomGuy · 26 July 2017 at 11:37AM

Well it is very difficult to quantify risk but I guess my perception of 'rare' comes from just reading around and not seeing that many horror stories...

I don't have any debt. £1000 is a significant amount of money that I would be disappointed to lose but it wouldn't be the end of the world, if you get what I mean?

Just looking at savings accounts it seems like you can't even beat inflation. My other option would be buying some premium bonds and hoping I am that one person in X million that his the jackpot - no risk but again not going to beat inflation.

badger09 · 26 July 2017 at 11:45AM

SomeRandomGuy wrote: »

Well it is very difficult to quantify risk but I guess my perception of 'rare' comes from just reading around and not seeing that many horror stories...

I don't have any debt. £1000 is a significant amount of money that I would be disappointed to lose but it wouldn't be the end of the world, if you get what I mean?

Just looking at savings accounts it seems like you can't even beat inflation. My other option would be buying some premium bonds and hoping I am that one person in X million that his the jackpot - no risk but again not going to beat inflation.

Are you using current and Regular savings accounts paying 5% eg Nationwide FlexDirect & RS - with NO risk? If not, I would start there.

Peer-to-peer lending sites: MSE guide discussion

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