hazellend
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Post by hazellend on Jun 2, 2019 12:20:09 GMT
I need to keep my savings income > 18.5 k tax free level as I want to offset any Lendy losses from this and future years income.
Huddle offer 16% and don’t seem higher risk than other platforms. Often their business loans are secured against the customers residential property at (40-70%), although as yet untested (one such loan just defaulted)
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pom
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Post by pom on Jun 2, 2019 18:10:32 GMT
I need to keep my savings income > 18.5 k tax free level as I want to offset any Lendy losses from this and future years income. Huddle offer 16% and don’t seem higher risk than other platforms. Often their business loans are secured against the customers residential property at (40-70%), although as yet untested (one such loan just defaulted) 16%....what could possibly go wrong? Bear in mind also there was considerable spamming somehow of collateral investors (how?) - not proven but a number of people were spammed by huddle on email addresses they only used for collateral. And then there was the never quite explained issues with the B******** loan only "discovered" when that moved from ABL to MT. They might be ok but personally they are well and truly in bargepole territory for me....and yeah that might be partly because it's easier to do that than go investigating, but whatevs
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stevio
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Post by stevio on Jun 2, 2019 18:43:32 GMT
So non one is using the AC QAA as an alternative to a savings account?
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copacetic
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Post by copacetic on Jun 2, 2019 19:16:10 GMT
So non one is using the AC QAA as an alternative to a savings account?
It's not a savings account. It's currently instant access but if (when?) there's a run on it (more people looking money out than in after the cash buffer is depleted) your cash will be locked in for the term of the underlying loans. There's also platform risk as we've seen recently and no FSCS guarantee. Assume that if you invest here there's a small chance (hopefully) you could lose access to the cash for several years. If you plan on really needing that money put it in a bank account.
Edit: I'd suggest a good use of it is for money you've already earmarked for investment but are perhaps waiting on some manual invest p2p loan opportunities to surface
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Post by df on Jun 2, 2019 19:22:14 GMT
So non one is using the AC QAA as an alternative to a savings account? I'm sure many people do. It looks and works exactly like instant access savings account, but without FSCS. I use 30/90 day accounts instead because I don't need instant access for this money. If you have ran out of your bank allowances and left with choice of 1.5% products then 4.1% from QAA can be a tempting alternative.
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hazellend
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Post by hazellend on Jun 2, 2019 20:22:57 GMT
I need to keep my savings income > 18.5 k tax free level as I want to offset any Lendy losses from this and future years income. Huddle offer 16% and don’t seem higher risk than other platforms. Often their business loans are secured against the customers residential property at (40-70%), although as yet untested (one such loan just defaulted) 16%....what could possibly go wrong? yea it's definitely at the spicier end. I've had a lot of instant returns from loans that are cancelled so they do seem to doing their DD on loans. So far, I'm happy with what I've seen. They did also get very "lucky" with their pub loan
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Post by df on Jun 2, 2019 21:15:01 GMT
16%....what could possibly go wrong? yea it's definitely at the spicier end. I've had a lot of instant returns from loans that are cancelled so they do seem to doing their DD on loans. So far, I'm happy with what I've seen. They did also get very "lucky" with their pub loan It's about two years since HC launched. Very slow development, random type of loans, but it seems now found their trend.
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bigfoot12
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Post by bigfoot12 on Jun 2, 2019 22:19:55 GMT
So non one is using the AC QAA as an alternative to a savings account? I'm sure some are, and they might get lucky, but I don't. Liquidity has a price, but with QAA and Ratesetter's equivalent and most of the rest you are paying the price of liquidity, but not actually getting it. If you have some buy orders in AC and have the QAA sweep turned on that seems like a reasonable compromise (although I have stopped that recently). But in many scenarios when I will need that money quickly I expect that the QAA (and all similar accounts) will not be liquid, think steep recession with people being made redundant, sharp increase in inflation or interest rates, stock market sharp falls, and many other things which have happened in the last 12 or so years.
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