Peer-to-peer lending sites: MSE guide discussion
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Would guess nobody knows yet if Brexit will be good or bad but in someways there has been history before of both funds and lending and many of the new products are just new spins on old ideas in my opinion
I.e
Multi asset funds such as VLS,HSBC are like old style pension funds but with lower fees and passive mainly but the idea is not new
lower rate P2P is just personal or mortgage type lending as per banks but funded by savers(but also now institutional)
Higher rate P2P is property development etc that may have been funded by HNW
But the risk with the P2P is that most are start up companies0 -
A lot of the FTSE companies are not affected directly by the British economy and most of their activities are outside UK . If there was a bad Brexit the Pound would fall and every time this has happened recently the FTSE has gone up as when they repatriate their profits they get more £.'m curious to know which "may" be hit the worse with Brexit?
P2P investors lending to local small and medium business and personal loans.
Or
Our national stock market made up of companies that trade internationally and global stock markets that require currency exchanges.
I suspect a slump in the economy would affect P2P more .0 -
I'm curious to know which "may" be hit the worse with Brexit?
P2P investors lending to local small and medium business and personal loans.
Or
Our national stock market made up of companies that trade internationally and global stock markets that require currency exchanges.
I suspect you've almost answered your own question. However a fuller answer would be:
If Brexit goes well - global stockmarkets would be worst hit - as an increase in Sterling would reduce the value of overseas assets in £ terms. (But on the plus side, your Sterling-priced shares would buy more stuff from overseas.)
If Brexit goes badly - in general the answer would be P2P.
However, many P2P loans will be resilient to the negative effects of Brexit, because they're worthless already. If I'm a dodgy property developer who's borrowed money from the likes of ***** on a nod and a wink and it's already long been spent or disappeared into a shell company, Brexit won't change anything as to the likelihood of repayment.0 -
Brexit wont significantly change much long term. The media and politicians are all paid to sensationalize every single aspect, snippet and nuance of everything about it. Everything is either it will be the end of times or it will be sunny and rosy and everybody will win.
Back in reality, house prices, s&s, p2p, the economy will still chug along with a blip either way whatever sort of deal is done.
As far as p2p is concerned, my current returns this year are running 6-7% which is more than my pension pot or s&s ISA has achieved, proving to me the benefits of a full spread portfolio.
Couple of people have asked if everybody is getting out of p2p. I dont really see that happening given the platforms i use are all growing. I am steadily increasing but keeping ratios sensible.0 -
For me p2p is a valid part of your investment if you take it for what it is. The danger is when people get greedy and pile in. You only have to look at the collateral thread to see people who freely admitted getting sucked in to the high interest rate. It's why i diversify across multiple platforms and the high risk ones like ablrate I keep my investments to a few hundred per loan. 15%, returns is fantastic but its inevitable some will default just by the nature of their borrowers.0
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For those exiting Moneything or trying to bed&ISA, there has just been £2.5m of funds repaid, so secondary market queues are moving. There have also been some interesting opportunities popping up on the SM for those looking to reinvest funds.0
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Is there a forum for P2P or just this one thread for all of it ?
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 ?
On the other platforms I am very choosy, but not getting above 7-8%"It is not the critic who counts..." - Theodore Roosevelt0 -
Was. It was a while ago now, but rising defaults, lousy property loans, falling rates - and simply decreasing confidence. Fortunately, the rising defaults were something I mostly watched from the safe shores (because I bothered to do DD), but the subsequent move to autobodge-only means that would be unavoidable now.Psyduck1980 wrote: »Dare I ask what the issue with Funding Circle is?
Two years after selling out of as much as possible, my recoveries are just over 10% of the defaulted amounts. XIRR of just under 7%, all in.
There are several outside of MSE. Inside MSE, just here.dont_use_vistaprint wrote: »Is there a forum for P2P or just this one thread for all of it ?0 -
dont_use_vistaprint wrote: »Is there a forum for P2P or just this one thread for all of it ?
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.0
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