Peer-to-peer lending sites: MSE guide discussion
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glad to see this thread is active again.
i too have pulled out more than 10% of my p2p investments this month, albeit not because of higher risk with the market correction, but rather i wanted to diversify more.Aim to retire by 45.0 -
i think its a good idea to be mindful of the next recession and to have a plan to exit P2P. P2P imo is not a long term form of investing. Highly cyclical, very new, thus best to derisk well in advance of a recession. better to be safe then sorry.0
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i think its a good idea to be mindful of the next recession and to have a plan to exit P2P. P2P imo is not a long term form of investing. Highly cyclical, very new, thus best to derisk well in advance of a recession. better to be safe then sorry.
I checked my P2P total amounts across my platforms today and I have just tipped the 17k at £17,100 odd at present and I updated my P2P spreadsheet.
I understand about being mindful of the next recession, guessing when to time that would maybe be hard to know. While invested in P2P I think it is important to spread platforms and spread loans, which I have tried my best to do.
I see my stock market investments for life so looking very long term with these investments.
With P2P being new and things may change, for the good or worse, when you say you don't see it as a long term investment, would you consider it even medium term over the next 5 years or see yourself anyway invested in P2P beyond that as an overall portfolio?
I do like the concept of P2P lending and some of the platforms so far have been very good with their approach in dealing with investors and listening to them and it is important to try and pick the right platforms to invest with and still spread around.
I feel I would like to have P2P as part of my overall portfolio in years to come, but will be monitoring it at the same time while keeping my stock market investments up and cash levels for what I need them at.
It is good as newcomer said to see this thread more active again.0 -
takesyourchances wrote: »I checked my P2P total amounts across my platforms today and I have just tipped the 17k at £17,100 odd at present and I updated my P2P spreadsheet.
I understand about being mindful of the next recession, guessing when to time that would maybe be hard to know. While invested in P2P I think it is important to spread platforms and spread loans, which I have tried my best to do.
I see my stock market investments for life so looking very long term with these investments.
With P2P being new and things may change, for the good or worse, when you say you don't see it as a long term investment, would you consider it even medium term over the next 5 years or see yourself anyway invested in P2P beyond that as an overall portfolio?
I do like the concept of P2P lending and some of the platforms so far have been very good with their approach in dealing with investors and listening to them and it is important to try and pick the right platforms to invest with and still spread around.
I feel I would like to have P2P as part of my overall portfolio in years to come, but will be monitoring it at the same time while keeping my stock market investments up and cash levels for what I need them at.
It is good as newcomer said to see this thread more active again.
I have roughly 50k (10% of overall investments) in P2P. I do not see it as any term investment. I just know i need to exit before the next recession hits. Of course no one knows when the next recession will hit. But i rather be ultra cautious then exit AFTER the event. P2P takes a whilst to liquidate and sometimes at cost if sooner. Best to plan ahead.
Of course not all platforms have the same risk and some are riskier then others. But the ones lending to small businesses and secured against assets with "dodgy" valuations (think lendy), i would be very careful of.
I would advice not to be addicted to the high rates of interest you get. There is a very good reason for these high rates.0 -
The way i see it is i have ramped up slowly my P2P over the last 1.5 years. I am now slowly ramping down my P2P investments. I will still be earning high rates of interest during this course of action albeit on different amounts.0
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I have roughly 50k (10% of overall investments) in P2P. I do not see it as any term investment. I just know i need to exit before the next recession hits. Of course no one knows when the next recession will hit. But i rather be ultra cautious then exit AFTER the event. P2P takes a whilst to liquidate and sometimes at cost if sooner. Best to plan ahead.
Of course not all platforms have the same risk and some are riskier then others. But the ones lending to small businesses and secured against assets with "dodgy" valuations (think lendy), i would be very careful of.
I would advice not to be addicted to the high rates of interest you get. There is a very good reason for these high rates.
Makes sense your thoughts and 50k is a very sizeable P2P investment. I pulled out of Funding Circle last year before the changes and pulled out of Zopa.
The higher rate platforms I am in are Ablrate, Collateral and Moneything, my investments have slowed down in Collateral due to more property and being at my limit with certain projects on going with more tranches, Moneything I withdrawn maybe £1000 from which went to stocks with repayments and no new offerings of interest came up.
Ablrate out of those 3 has now went to my highest invested, I hope they can continue how it is going.
The more hands off lower rate accounts I have money with is - Ratesetter, which I have not added to recently asides re-investing - Assetz Captial, I have some in their product type accounts so it is hands off but not added in a while and some in Lending Works hands off fire and forget.
I never fancied Lendy after what I read on forums and some other platforms.
It does take time to liquidate P2P and you are still earning rates as you drawdown.
Your certainly right there is a reason for the higher rates and some loans over recent months I have not went into, even with the high rates and I didn't like them.
I saw some of the loans was pulled as well from Ablrate etc when investor interest was not there. While the high rates are attactive, I am trying to be quite selective too what I invested into.
The amounts invested do add up, I could easily hit 20k soon in P2P so I am watching things myself as well. Appreciate the post exchanges as you never stop learning
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I too have spent some time (almost exactly a year) building my p2p investments to approx £26k. This represents approx 55% of my investments although I am contributing to a DB pension so 'overall' the ratio is not as high as it appears.
I'm at around my limit and the value has stabilised for the last two months having grown significantly each month previous.
November was the first time I made any withdrawals from p2p when I began making some withdrawals from Moneything. There have been some repayments at Moneything and fewer attractive new loans to invest in. My holding at Moneyhting has reduced slightly from it's peak.
I've also made my first withdrawals from Collateral in the last fortnight. Bling/pawn is my preferred asset on Collateral and with no new pawn loans for some time investors are rarely releasing any holdings to the secondary market. I'm withdrawing funds rather than leaving them un-invested waiting for bling/pawn to become available.
Ablrate has attracted a little more investment but only roughly equivalent to the reduction in my Moneything investment. I will probably be withdrawing interest payments from Abl going forward rather than reinvesting through the SM which I have been doing until now.
I expect that most of my interest payments for the foreseeable future will be withdrawn and will provide a portion of the funds required to fill my S&S LISA.0 -
I too have spent some time (almost exactly a year) building my p2p investments to approx £26k. This represents approx 55% of my investments although I am contributing to a DB pension so 'overall' the ratio is not as high as it appears.
I'm at around my limit and the value has stabilised for the last two months having grown significantly each month previous.
November was the first time I made any withdrawals from p2p when I began making some withdrawals from Moneything. There have been some repayments at Moneything and fewer attractive new loans to invest in. My holding at Moneyhting has reduced slightly from it's peak.
I've also made my first withdrawals from Collateral in the last fortnight. Bling/pawn is my preferred asset on Collateral and with no new pawn loans for some time investors are rarely releasing any holdings to the secondary market. I'm withdrawing funds rather than leaving them un-invested waiting for bling/pawn to become available.
Ablrate has attracted a little more investment but only roughly equivalent to the reduction in my Moneything investment. I will probably be withdrawing interest payments from Abl going forward rather than reinvesting through the SM which I have been doing until now.
I expect that most of my interest payments for the foreseeable future will be withdrawn and will provide a portion of the funds required to fill my S&S LISA.
Good to read your update as well as we were investing over similar periods in P2P. I have been pondering the LISA before I pass the age you can open them, I am 38 now, I like the access the S&S ISA can give if I want to drawn anything at any point before pensions as I already have property so if I was opening an LISA it would be for retirement.
The lack of bling on Collateral and heavy change into property and some big projects halted recent money flowing into it from me. I recall you signed up to Unbolted for bling etc following the slowdown in Collateral, how have you found it?
I think I will still be adding to P2P at the moment but slowing the pace down from last year and be open to review things as needs be. I added to my S&S ISA today to some investments that have went down and I am adding weekly into it too drip feeding.0 -
takesyourchances wrote: »Good to read your update as well as we were investing over similar periods in P2P. I have been pondering the LISA before I pass the age you can open them, I am 38 now, I like the access the S&S ISA can give if I want to drawn anything at any point before pensions as I already have property so if I was opening an LISA it would be for retirement.
If I were still under 40 I would open one anyway. In a few years time you might be glad of an extra home for some investments. What have you got to lose?0 -
If I were still under 40 I would open one anyway. In a few years time you might be glad of an extra home for some investments. What have you got to lose?
That is a very fair point Alan, could regret it after 40 as no option then. I don't have to fill the years allowance right away, might be glad of it in later years for an extra investment home.0
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