rscal
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Post by rscal on Apr 14, 2019 15:45:21 GMT
I'm looking at their offer of upto £400 cashback on a full £20k with my 19/20 subscription - but would only in go for 10k/£300 C/B b4 30 April and this would be auto-invested with income withdrawn and capital reinvested. I would then anitcipate funding up to £10k at year-end with the intention of transferring this immediately* after April 6 next year. I understand that I must leave my initial £10K undisturbed until the first anniversary of the cashback, and thereafter I can either sellout and incur some selling fees or 'run-off' the account balance over then following 5 years. *By simply depositing in IFISA but not investing the second £10K it should becomes transferable without charge (is that correct?) and without having any effect on the initial 10K investment provided we are outwith [Scottish word] 19/20 and inwith 20/21 when this occurs.
Obviously splitting funds to a separate platform is just sensible since the IFISA limit is so generous nowadays.
Have I missed any significant details in this scheme? Thnx
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IFISAcava
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Post by IFISAcava on Apr 14, 2019 16:55:02 GMT
I'm looking at their offer of upto £400 cashback on a full £20k with my 19/20 subscription - but would only in go for 10k/£300 C/B b4 30 April and this would be auto-invested with income withdrawn and capital reinvested. I would then anitcipate funding up to £10k at year-end with the intention of transferring this immediately* after April 6 next year. I understand that I must leave my initial £10K undisturbed until the first anniversary of the cashback, and thereafter I can either sellout and incur some selling fees or 'run-off' the account balance over then following 5 years. *By simply depositing in IFISA but not investing the second £10K it should becomes transferable without charge (is that correct?) and without having any effect on the initial 10K investment provided we are outwith [Scottish word] 19/20 and inwith 20/21 when this occurs.
Obviously splitting funds to a separate platform is just sensible since the IFISA limit is so generous nowadays.
Have I missed any significant details in this scheme? Thnx
That is correct. And you can spread that £10 K via partial transfers into several other ISAs if you choose. Having said that my experience with LC is not good - loan losses pretty much cancelled out interest, and the cashback was the main source of profit. Have sold up after less than 2 years, barring the residual money stuck in non-performing loans.
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pom
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Post by pom on Apr 14, 2019 18:33:49 GMT
I'm looking at their offer of upto £400 cashback on a full £20k with my 19/20 subscription - but would only in go for 10k/£300 C/B b4 30 April and this would be auto-invested with income withdrawn and capital reinvested. I would then anitcipate funding up to £10k at year-end with the intention of transferring this immediately* after April 6 next year. I understand that I must leave my initial £10K undisturbed until the first anniversary of the cashback, and thereafter I can either sellout and incur some selling fees or 'run-off' the account balance over then following 5 years. *By simply depositing in IFISA but not investing the second £10K it should becomes transferable without charge (is that correct?) and without having any effect on the initial 10K investment provided we are outwith [Scottish word] 19/20 and inwith 20/21 when this occurs.
Obviously splitting funds to a separate platform is just sensible since the IFISA limit is so generous nowadays.
Have I missed any significant details in this scheme? Thnx
I'd definitely seek others experiences as to whether it's worth it at all - a lot of us invested when they first launched and only really came out OK due to the bonuses, and you can't offset losses in an IFISA...(I don't think anyone's had more than ONE recovery payment as yet, on a number of loans that went bad at that time) it *might* be better now tho the post by IFISAcava might also suggest not.... And I don't know what selling up is like these days but it took me several months to sell all my loans after my initial 1yr. I'd double check their Ts&Cs also as I'd be extremely surprised if somewhere it didn't say "bonus payable on INVESTED funds" - because that's generally how all their other bonuses (and those on other platfoms) work - because otherwise it'd be far too easy to transfer money in without investing any of it And generally I'd be really wary of opening an IFISA on any platform I hadn't already tried the regular account, because you only really work out how well they work by trying them. As for paying in the rest of your allowance just before the end of tax year ready to transfer in the new - I do that, but with a bank cash ISA..at least it gets a smidgen of interest, and as I use a bank I have a current account with its simple to do.
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IFISAcava
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Post by IFISAcava on Apr 15, 2019 9:08:29 GMT
My LC Autoinvest Growth ISA (which I am trying to sell out of)
Loan Holdings £652.07
Loans 20
Bad Debt £651.32
Net Earnings £365.90
Actual Rate of Return 2.56%
So about two-thirds of interest to date wiped out by bad debt. The Loan Holdings comprises loans that can't be sold due to late payments/arrears etc. If I get half of that capital back then I will just about break even. I suppose I might get a few percent of the bad debt back but experience suggests that is unlikely as cost of recovery outweighs likely amounts recovered in most cases.
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r00lish67
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Post by r00lish67 on Apr 15, 2019 9:40:40 GMT
I'm a manual LC investor on my second incarnation. The first played out as pom described earlier - I came out with a very small profit, only due to the generous sign-up bonus. There were so few loans that we pretty much all experienced the same. So far with the second (started Sept 2018), it's going better, so far. The main improvements since the first time around are: 1) Much better loan flow, usually between 1-3 loans issued per day, allowing proper diversification. 2) Surprisingly low default rates, and evidenced by the ability to download the full loanbook (a rare treat these days). On the flipside, it's too early to draw conclusions with my second portfolio. I'm attempting to be selective in the loans I choose, and monitor actively. I also have not 'banked' the bonus I received from investing and furthermore treat 1/3 of my returns as provision for future losses. My hope is that both of these elements will outweigh the inevitable defaults I will experience. My diversification is currently at 0.7%, and I am reinvesting interest in new loans to try and get to circa 0.5%. Having just downloaded their loanbook: Out of 730 loans issued (all-time), 39 are currently recorded as in arrears or loss (5.3%). Excluding the early years, 2014-2016, they've issued 545 loans of which 20 are recorded as arrears or loss (3.67%). I hope that this reducing default rate is an ongoing trend, but of course more time is needed to assess the performance by cohort year in full. Further analysis of the loanbook may help you to pick up trends over which loans are more likely to hit the skids. Best of luck. |
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Post by gravitykillz on Apr 16, 2019 17:19:48 GMT
The feedback i have got is this is the worst p2p lender. Only put money in here that you can afford to lose. For me that is 0.
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r00lish67
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Post by r00lish67 on Apr 16, 2019 20:20:42 GMT
The feedback i have got is this is the worst p2p lender. Only put money in here that you can afford to lose. For me that is 0. No. The worst lender is that one that went under after operating without proper authorisation, taking a virtual hammer to their DB as they left. I do think LC are a marginal proposition, and I don't personally fancy their auto-product. I'm enjoying manual for now, but that could change quickly obvs.
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Post by Berkeley on Apr 17, 2019 10:36:38 GMT
Personally I would avoid an IFISA with any P2P platform that has not demonstrated a high recovery on defaults.
Tax relief on P2P bad debt can be offset against interest on other P2P taxable earnings. As the IFISA interest is non-taxable, bad debt within an ISA wrapped account cannot be offset (legally) against other P2P taxable interest. i.e. it is lost and effectively lowers the income from the ISA unless it is recovered by the platform.
Recoveries from LC to date have been very low. Most of their loans now, are not asset backed, making IFISA losses too high a risk for my appetite.
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IFISAcava
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Post by IFISAcava on Apr 17, 2019 10:48:49 GMT
Personally I would avoid an IFISA with any P2P platform that has not demonstrated a high recovery on defaults. Tax relief on P2P bad debt can be offset against interest on other P2P taxable earnings. As the IFISA interest is non-taxable, bad debt within an ISA wrapped account cannot be offset (legally) against other P2P taxable interest. i.e. it is lost and effectively lowers the income from the ISA unless it is recovered by the platform. Recoveries from LC to date have been very low. Most of their loans now, are not asset backed, making IFISA losses too high a risk for my appetite. Offsetting losses just gives you a proportion of your interest tax free in essence. As all your interest is alteady tax free within and IFISA, then unless you make a loss OVERALL on P2P you are better off within an IFISA. If you have P2P both inside and outside an ISA, and you can predict where you will get losses, then sure, put those outside the IFISA. But higher losses tends to go with higher interest, so swings and roundabouts really.
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pip
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Post by pip on Apr 17, 2019 12:24:41 GMT
The feedback i have got is this is the worst p2p lender. Only put money in here that you can afford to lose. For me that is 0. In my experience LC is far from the worse. While recoveries on defaults have not been great the level of defaults in the last few years has been ok and the bonuses very generous. I am in profit with LC, I cannot say that for some other platforms, namely FundingSecure and in the past year Zopa.
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Post by albermarle on Apr 19, 2019 15:01:36 GMT
The feedback i have got is this is the worst p2p lender. Only put money in here that you can afford to lose. For me that is 0. In my experience LC is far from the worse. While recoveries on defaults have not been great the level of defaults in the last few years has been ok and the bonuses very generous. I am in profit with LC, I cannot say that for some other platforms, namely FundingSecure and in the past year Zopa. I have been with LC for two years and fully invested in around 80 loans for 18 months . However since they reduced the max interest achievable on new auctioned loans, I have only invested in a handful of new ones . This effective 2% reduction meant the risk/reward ration moved in a negative direction . Overall my latest earnings figure is 4.8% ( not including cash bonus ) . Basically I am not selling out but letting the loan book slowly run down as there are just a few too many losses /late payers for comfort. Although it is not disastrous by any means . Also it is just my perception but more of the recent loans seem to be about paying off other loans/increasing working capital rather than for investment/refurbishment .
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Post by gravitykillz on Apr 19, 2019 22:20:38 GMT
I personally prefer the isa offered by crowdproperty.
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