brush
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Post by brush on Oct 8, 2015 9:49:33 GMT
Hello fellow lenders, looking for a lesson in maths in which my capabilities are non existent, so please be gentle.
Have lent a majority of my money in Saving Stream easy to understand because of fixed 12% interest. Have seen other platforms on
which bids are made at 20% interest, payments are monthly but include capital and interest over a period of 60 months.
Maths wise and profitability wise which is the better. Hopefully enough information.
Cheers brush
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SteveT
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Post by SteveT on Oct 8, 2015 10:06:43 GMT
Hello fellow lenders, looking for a lesson in maths in which my capabilities are non existent, so please be gentle. Have lent a majority of my money in Saving Stream easy to understand because of fixed 12% interest. Have seen other platforms on which bids are made at 20% interest, payments are monthly but include capital and interest over a period of 60 months. Maths wise and profitability wise which is the better. Hopefully enough information. Cheers brush The relevant point is really not about amortisation but the relative likelihood of losing some or all of your money. If both loans were 100% safe then 20% amortising beats 12% interest only hands down. But if you can find any 20% amortising loans backed by first charge property security at max 70% LTV then can you quietly PM me where to look (before the thundering herd arrive!). Generally 20% implies a pretty serious risk of losing money at some stage.
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rogerbu
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Post by rogerbu on Oct 8, 2015 10:18:07 GMT
Hello fellow lenders, looking for a lesson in maths in which my capabilities are non existent, so please be gentle. Have lent a majority of my money in Saving Stream easy to understand because of fixed 12% interest. Have seen other platforms on which bids are made at 20% interest, payments are monthly but include capital and interest over a period of 60 months. Maths wise and profitability wise which is the better. Hopefully enough information. Cheers brush Agree with SteveT. However your post set alarm bells that may be just my reading. Assuming that you are already diversified across different asset classes (ie shares, cash etc). Then I hope that your comment 'Have lent a majority of my money in Saving Stream' doesn't infer that all your P2P is in one platform! Diversification within a platform is as important as diversification across platforms. My own simple, non researched rules are:- - No one platform may have more that 20% of P2P money - No one loan may be more that 1% of the total amount I plan to keep as a P2P asset class.
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brush
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Post by brush on Oct 8, 2015 10:44:58 GMT
Thank you gentlemen for the quick replies, Roger apologies not written very well, largest percentage of my P2P lending is on Saving Stream, some on other platforms.
On Saving Stream have lent on at least 10 different loans.
Steve just looking at one on the Rebuildingsociety platform Portobello art 2nd charge on a property involved. Interested in your views.
Cheers brush
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SteveT
Member of DD Central
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Post by SteveT on Oct 8, 2015 10:51:06 GMT
Thank you gentlemen for the quick replies, Roger apologies not written very well, largest percentage of my P2P lending is on Saving Stream, some on other platforms. On Saving Stream have lent on at least 10 different loans. Steve just looking at one on the Rebuildingsociety platform Portobello art 2nd charge on a property involved. Interested in your views. Cheers brush I've not even looked at it since it's highly unlikely to fill (IMHO). Far too big for ReBS and already has been extended once.
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