Peer-to-peer lending sites: MSE guide discussion

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  • Ash_Pole
    Ash_Pole Posts: 308
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    I'm actually doing ok on the FC automated thing, 11.2%, over 1 year in and still no debts , I do constantly sell and take new loans, as theres no fees now for this, is this the trick or am I just extremely lucky ?

    Interesting idea. I guess loans are more likely to go bad in year 2 than year 1. How often do you sell and buy? I might give this a go, I've done ok with FC but I've not had rates in double figures.
  • Shedman
    Shedman Posts: 1,485
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    Malthusian wrote: »
    There are a number of individual P2P threads for the bigger platforms, mostly started by Jamesd to prevent this thread being overwhelmed. Other than the thread for Kufflink, which I've seen bumped up a few times recently, I think most of them are basically dead. Jamesd hasn't posted for a while.

    Yeah I'd noticed Jamesd hasn't been around for a while ..used to find his pension posts very useful, especially a couple of years ago when I was being made redundant. Mind you I thought he was often a bit too over bullish on P2P. Hope all is OK with him.
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 600
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    edited 8 November 2018 at 12:59PM
    Ash_Pole wrote: »
    Interesting idea. I guess loans are more likely to go bad in year 2 than year 1. How often do you sell and buy? I might give this a go, I've done ok with FC but I've not had rates in double figures.

    Its quoting 7.7% as estimated but annualised and gross returns are both currently 11.2%

    I hold for 3-6, on the app you can see exactly when next payments are due so will sell after a decent collection. I then sell all and start again. It normally takes between 2-4 days to buy 5K-10K and much faster to sell, but I have noticed its slowed down a little.

    Its just occurred to me I may actually be buying back the same loans :-) But whatever, I'm getting no losses so far. I wish I could choose the loans like in the past, I know which ones to avoid like new stock ranges and payment for VAT is always good even if D or E
    "It is not the critic who counts..." - Theodore Roosevelt
  • Albermarle
    Albermarle Posts: 21,642
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    wish I could choose the loans like in the past, I know which ones to avoid like new stock ranges
    I have an account with Lending Crowd, which is like a small version of FC but you can still pick your own loans if you want , although there is a lot less of them .
    Interestingly there have been a few recently asking for loans to fund additional Xmas stock /new seasonal ranges and I have avoided those as well . Seems too late to me to be borrowing money to fund stock for Xmas , which in retail terms is already well under way.
    I also read somewhere it is good to avoid loans to solicitors , financial advisers or small companies offering business services /consultancy.
  • AdrianC
    AdrianC Posts: 42,189
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    Ah, LC.

    The one and only platform I've outright lost money on to date. Fortunately, the sign-on bonus (just) covered it. Not one single penny of recovery on the loans that went south.
  • I've read somewhere (quite possibly on here) that the defaults on Funding Circle are likely to go through the roof after Brexit. I realise that nobody has a crystal ball but I just wondered if that was the general consensus and, as such, if people are intending to close out their positions beforehand?
  • AdrianC
    AdrianC Posts: 42,189
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    I've read somewhere (quite possibly on here) that the defaults on Funding Circle are likely to go through the roof after Brexit. I realise that nobody has a crystal ball but I just wondered if that was the general consensus and, as such, if people are intending to close out their positions beforehand?
    Anybody saying they can predict what'll happen to anything "after Brexit" is lying to you.


    And that includes Theresa May.
  • AdrianC wrote: »
    Ah, LC.

    The one and only platform I've outright lost money on to date. Fortunately, the sign-on bonus (just) covered it. Not one single penny of recovery on the loans that went south.

    One thing that seems to be better with FC than others is their ability to recover. I would expect since IPO, they have some good leadership in this area, they are already the largest P2P and if they are growing the company still they need to make sure they have the best expertise in this area.
    "It is not the critic who counts..." - Theodore Roosevelt
  • AdrianC wrote: »
    Ah, LC.

    The one and only platform I've outright lost money on to date. Fortunately, the sign-on bonus (just) covered it. Not one single penny of recovery on the loans that went south.

    How can we track the overall amount of default and ability to recover across different platforms. Is this published anywhere it can be compared.

    I looked at the Lending crowd and my gut instinct looking around the site was they wouldn't have a clue how to recover. Plus I dont want to set my rates, I want experts in risk to do it for me, what you just said above confirms my instincts! What value are they actually adding ?
    "It is not the critic who counts..." - Theodore Roosevelt
  • stehouk
    stehouk Posts: 412
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    One thing that seems to be better with FC than others is their ability to recover. I would expect since IPO, they have some good leadership in this area, they are already the largest P2P and if they are growing the company still they need to make sure they have the best expertise in this area.

    The way i look at it (i'm no expert and only an opinion) have they sold/floated the company before brexit/recession hits, taken the money and run, as for recoveries well it is painfully slow and if they hadn't sold the loans in the first place maybe i would have still been investing with them.
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