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Post by jdot on Jun 1, 2019 14:37:58 GMT
Hello,
I am new to the world of p2p lending and have been reading up as much as I can, been quite sceptical my investment is really small at this time. I do however have 2 questions for some of the more experienced lenders. My 2 questions are;
On average when setting your own rate(s) on the 1 & 5 year how long does it take for the money to go from unmatched to on loan?
The second question I have is,
On average, how often are loans repaid early and how early are they, I have read on these forums some people saying they have had 1 year loans, fully repaid in just a few days?
I'm trying to gauge whether there is any point having money sat there
, for x period of time, only for it to get paid y numbers of days/weeks/months/years early
I appreciate all advice & feedback in advance
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Greenwood2
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Post by Greenwood2 on Jun 1, 2019 15:38:47 GMT
Hello, I am new to the world of p2p lending and have been reading up as much as I can, been quite sceptical my investment is really small at this time. I do however have 2 questions for some of the more experienced lenders. My 2 questions are; On average when setting your own rate(s) on the 1 & 5 year how long does it take for the money to go from unmatched to on loan? The second question I have is, On average, how often are loans repaid early and how early are they, I have read on these forums some people saying they have had 1 year loans, fully repaid in just a few days? I'm trying to gauge whether there is any point having money sat there , for x period of time, only for it to get paid y numbers of days/weeks/months/years early I appreciate all advice & feedback in advance Where you set your rates determines how quickly your funds are lent. If you use 'view full market' you can see how much money is at each rate and the cumulative amount. You can also see any borrowers, if you pick the bottom rate or 0.1% below you will be matched very quickly, if you want to maximise rates you go above, if there are small amounts at several 0.1% points above you can go higher and still get matched quickly. Recently rates have been falling and there has been little scope to go much above the lowest rate, a couple of months ago you could go maybe 1% above. It is not a precise art! Early repayments are random, they may correlate a bit with loans at higher rates when current rates are falling and borrowers cash in to get a lower rate loan. I don't worry about them too much as you can just re-invest, although if you usually hold out to only invest when rates are high, then I guess it could be a problem. Some lenders just withdraw funds if the rates are (in their opinion) too low and re-invest when rates go up.
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alanh
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Post by alanh on Jun 1, 2019 16:12:33 GMT
If you go "market data" and then "rate trends" you can see graphs of historical rates. I only lend in the 5 year market and got quite a lot lent out at 6.3-6.5% at the beginning of the year. You can see from the graphs that the rate has been on a continual decline since the beginning of April. I am not lending anything at current levels and see little point of putting any offers in at 6.3% as the chances of getting matched up there are currently remote so the answer to your question is really dependant on what rate you are hoping to achieve. I am currently just withdrawing all repayments and putting it in Lending Works 5 year product at 6.5% which you may want to have a look at. Your money will sit there idle for 3-4 weeks before it gets matched but that makes little difference overall.
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alanh
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Post by alanh on Jun 1, 2019 16:30:46 GMT
The question about early repayment is interesting as I have never really tried to quantify it before but looking back at the 2 accounts I run - and remember this is 5 year money only - it looks like (very) roughly the balance reduces by about 10% every 3 months. This is made up of approximately half scheduled repayments and half early repayments. This may not be typical of what others are seeing but its what I've got on my 2 accounts. I actually like it - you can invest at the 5 year rate but know that a good chunk will be paid back earlier than expected. This may not be ideal in times when rates are falling as is the case now, but it is good in that your money is not actually tied up for 5 years.
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aju
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Post by aju on Jun 1, 2019 17:13:31 GMT
So I lent £23 yesterday @ 5.2 when there was quite a bit on the queue (I wish i'd recorded it). I'm now sitting at the front of the 5.2, well nearly at the front 7.5K away. Its moving about 5k every half hour or so as far as I can tell.
Had I put that on @5.3 it might have got to the front by sunday of the 120k before it but I guess i'll keep an eye on it this week. The volumes seem to be reducing.
That said I'm not sure how quick the rates would come up though.
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Post by jdot on Jun 1, 2019 18:21:50 GMT
If you go "market data" and then "rate trends" you can see graphs of historical rates. I only lend in the 5 year market and got quite a lot lent out at 6.3-6.5% at the beginning of the year. You can see from the graphs that the rate has been on a continual decline since the beginning of April. I am not lending anything at current levels and see little point of putting any offers in at 6.3% as the chances of getting matched up there are currently remote so the answer to your question is really dependant on what rate you are hoping to achieve. I am currently just withdrawing all repayments and putting it in Lending Works 5 year product at 6.5% which you may want to have a look at. Your money will sit there idle for 3-4 weeks before it gets matched but that makes little difference overall. In the long weeks and months of looking into P2P, given I have only just found this forum. The 2 standout sites I considered was lending works & ratesetter. I realise I need to diversify but lending works seem to require a minimum of £100? , which is a little out of my sceptical reach.... For now, although I appreciate the rates are fixed and they have some kind of insurance and the money I think is broken up. 3-4 weeks sounds like a really long time, remember I am new to this and fairly sceptical. Thank you for your feedback
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liso
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Post by liso on Jun 1, 2019 18:53:59 GMT
jdotDepending on the rates you want, it may be worth looking at Assetz Capital. They have several accounts, among them a quick access account paying 4.1%, and a 30 day notice account paying 5.1%. No minimum deposit and no cash drag in these accounts.
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Post by df on Jun 1, 2019 19:15:20 GMT
Hello, I am new to the world of p2p lending and have been reading up as much as I can, been quite sceptical my investment is really small at this time. I do however have 2 questions for some of the more experienced lenders. My 2 questions are; On average when setting your own rate(s) on the 1 & 5 year how long does it take for the money to go from unmatched to on loan? The second question I have is, On average, how often are loans repaid early and how early are they, I have read on these forums some people saying they have had 1 year loans, fully repaid in just a few days? I'm trying to gauge whether there is any point having money sat there , for x period of time, only for it to get paid y numbers of days/weeks/months/years early I appreciate all advice & feedback in advance 1. It depends on what rate you set. If it's at market rate your funds can match within few minutes. 2. In my personal experience, very rare. I'm using RS since Oct 2016 and had only 2 or 3 early repayments. I wouldn't set unachievable rates, your cash will stay idle for an indefinite period. I collect repayments, put them in bank to earn bog standard 1.5% and reinvest into RS when market rates go up to my liking.
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Post by df on Jun 1, 2019 19:31:36 GMT
jdot Depending on the rates you want, it may be worth looking at Assetz Capital. They have several accounts, among them a quick access account paying 4.1%, and a 30 day notice account paying 5.1%. No minimum deposit and no cash drag in these accounts. .... and no maintenance (invest and forget until you need the cash). Plus never ending bonuses if you don't withdraw your cash for a certain period of time. Also Growth Street could be worth looking at. 5.3%, virtually no cash drag, easy (30-day) access and continuous bonuses if you wish to keep increasing and hold the balance for a year.
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Post by jdot on Jun 2, 2019 12:23:05 GMT
Thank you everybody for all the advice so far, I really appreciate it
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aju
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Post by aju on Jun 2, 2019 13:52:23 GMT
Thank you everybody for all the advice so far, I really appreciate it Asking questions is the way we all gain from others, these forums are excellent for gaining a better understanding of the platforms at our disposal. So thanks to you too for asking.
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aju
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Post by aju on Jun 2, 2019 13:59:35 GMT
Hello, I am new to the world of p2p lending and have been reading up as much as I can, been quite sceptical my investment is really small at this time. I do however have 2 questions for some of the more experienced lenders. My 2 questions are; On average when setting your own rate(s) on the 1 & 5 year how long does it take for the money to go from unmatched to on loan? The second question I have is, On average, how often are loans repaid early and how early are they, I have read on these forums some people saying they have had 1 year loans, fully repaid in just a few days? I'm trying to gauge whether there is any point having money sat there , for x period of time, only for it to get paid y numbers of days/weeks/months/years early I appreciate all advice & feedback in advance 1. It depends on what rate you set. If it's at market rate your funds can match within few minutes. 2. In my personal experience, very rare. I'm using RS since Oct 2016 and had only 2 or 3 early repayments. I wouldn't set unachievable rates, your cash will stay idle for an indefinite period. I collect repayments, put them in bank to earn bog standard 1.5% and reinvest into RS when market rates go up to my liking. I've only been with RS since November and already had 2 loans pay early so far. To be fair they were relatively high rates compared to current rates. I was able to relend a 5.7% and a 6.4% relent at 5.1%. Not great swap but I also moved the money from investment to ISA so that will save 20% in tax down the line. I guess it's only natural that lenders will try to pay off one loan with a refinanced new loan. Well I guess that's what they did anyway. Mind you the 5Y rate is chipping away nicely at the 5.3% level at present - I think! Mind you tomorrow is another day I guess.
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Post by jdot on Jun 3, 2019 10:19:54 GMT
Hello, I am new to the world of p2p lending and have been reading up as much as I can, been quite sceptical my investment is really small at this time. I do however have 2 questions for some of the more experienced lenders. My 2 questions are; On average when setting your own rate(s) on the 1 & 5 year how long does it take for the money to go from unmatched to on loan? The second question I have is, On average, how often are loans repaid early and how early are they, I have read on these forums some people saying they have had 1 year loans, fully repaid in just a few days? I'm trying to gauge whether there is any point having money sat there , for x period of time, only for it to get paid y numbers of days/weeks/months/years early I appreciate all advice & feedback in advance Where you set your rates determines how quickly your funds are lent. If you use 'view full market' you can see how much money is at each rate and the cumulative amount. You can also see any borrowers, if you pick the bottom rate or 0.1% below you will be matched very quickly, if you want to maximise rates you go above, if there are small amounts at several 0.1% points above you can go higher and still get matched quickly. Recently rates have been falling and there has been little scope to go much above the lowest rate, a couple of months ago you could go maybe 1% above. It is not a precise art! Early repayments are random, they may correlate a bit with loans at higher rates when current rates are falling and borrowers cash in to get a lower rate loan. I don't worry about them too much as you can just re-invest, although if you usually hold out to only invest when rates are high, then I guess it could be a problem. Some lenders just withdraw funds if the rates are (in their opinion) too low and re-invest when rates go up. This is exactly what I was thinking, I guess only ratesetter has that data, (the correlation if any between rates set by lenders and early repayments vs market rates and early repayments) After further reading on various sites and this forum, I do think I have chose, a decent p2p platform and have become somewhat slightly less sceptical of p2p on the whole
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Post by jdot on Jun 3, 2019 10:25:04 GMT
jdot Depending on the rates you want, it may be worth looking at Assetz Capital. They have several accounts, among them a quick access account paying 4.1%, and a 30 day notice account paying 5.1%. No minimum deposit and no cash drag in these accounts. thank you for the feedback, I have had look at Assetz Capital over the weekend and will continue to look into them throughout the week, on their website their is heavy use of the words "in normal market conditions", which I find extremely subjective and may contact them to see if they can clarify "normal market conditions
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