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Post by p2plender on Oct 5, 2015 18:50:07 GMT
Do RS allow this?
The 3/6/3 rule.
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Post by westonkevRS on Oct 5, 2015 18:55:49 GMT
If you get accepted for the loan, contractually it's an unrestricted use unsecured loan. You can spend it how you wish. The issue is, will an underwriter consider the risk of the loan purpose too high in relation to your credit status. That's presuming you tell the truth, or lie and don't get found out. But there's nothing in the T&Cs about being a lender and a borrower, in fact I'm both. Although my (small) borrowing was to take full use of my ISA allowance before April happened, not to P2P lend. westonkevRS
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Post by p2plender on Oct 5, 2015 19:02:37 GMT
What about your RS account as guarantor then?
Surely it is only similar to what RS are doing in the monthly.
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jonbvn
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Post by jonbvn on Oct 5, 2015 22:40:30 GMT
Do RS allow this? The 3/6/3 rule. Surely the borrowing fees would not make it feasible? Now if you were talking about borrowing on RS to lend on AN Other platform there is some scope.
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registerme
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Post by registerme on Oct 5, 2015 22:47:36 GMT
Leverage can be.... dangerous.
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jonbvn
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Post by jonbvn on Oct 5, 2015 22:53:51 GMT
Leverage can be.... dangerous. Agreed! It magnifies risk significantly. However, it can also increase your returns.
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Post by p2plender on Oct 5, 2015 23:32:17 GMT
Well my repayment/interest money just rolls over everyday in the monthly market come what may. Money returned from my 5yr lending goes into the monthly and sits there until It's matched(repayments from 5yr lending going into monthly at the moment as I need liquidity early next year). Like I said, none of my monthly repayments ever 'sit' on the market, they just roll over for another month. So can Joe Bloggs borrow say £200k in the monthly at 3% (quite easy to borrow at that rate) and lend out in the 5 year at 6% (usually quite easy to lend at that rate) and just roll the 200k over in the monthly just paying the 3% interest. Simplistic of course but I'm curious with the 'rolling' monthly market.
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james
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Post by james on Oct 6, 2015 1:07:09 GMT
Leverage can be.... dangerous. One critical thing is not to take more in credit than you can repay comfortably if you have to do that after having lost all or a large part of the investments, depending on what the money is invested in. Repaying can be income, other investments or a combination but a viable plan has to be there to avoid a visit to bankruptcy court if you're unfortunate in your choices.
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Post by westonkevRS on Oct 6, 2015 5:43:55 GMT
Now if you were talking about borrowing on RS to lend on AN Other platform there is some scope. That would be considered extremely risky and any underwriter worth his salt would decline such an offer....  . westonkevRS
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stevio
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Post by stevio on Oct 6, 2015 7:59:19 GMT
Now if you were talking about borrowing on RS to lend on AN Other platform there is some scope. That would be considered extremely risky and any underwriter worth his salt would decline such an offer.... . westonkevRSShould you be that truthful with RS, 'home improvement' covers a multitude of sins  Interestingly saw that some of the P2P's had very low lending rates and it did cross my mind borrowing and lending their money to another P2P!
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