j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Oct 10, 2015 22:55:06 GMT
Having read the comments on the FCAregulation thread, and noticing declining rates on the likes of AC, is p2p slowly starting to lose its allure? Can platforms like SS maintain their 12% current ratewhen others are dropping theirs? Is p2p not the goose that laid the golden egg anymore? Sorry forgot to post link to FCA thread link |
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james
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Post by james on Oct 11, 2015 8:56:58 GMT
Is p2p not the goose that laid the golden egg anymore? There's also the matter of the split of golden eggs between platforms, lenders and borrowers. With the near-complete lack of platform price transparency it's hard to know if declining rates for lenders are due to platforms taking a higher cut or borrowers.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 11, 2015 20:16:26 GMT
Having read the comments on the FCAregulation thread, and noticing declining rates on the likes of AC, is p2p slowly starting to lose its allure? Can platforms like SS maintain their 12% current ratewhen others are dropping theirs? Is p2p not the goose that laid the golden egg anymore? Sorry forgot to post link to FCA thread linkI think some of the allure has gone, but overall P2P is still in rude health. Interest rates have dropped about 1 or 2% since I joined 18 months ago, and I think that is the Wellesley effect. They have grown 1000% in that 18 months, whilst offering low rates to lenders and presumably borrowers. They achieved that by clever marketing, and flouting P2P rules. The P2PFA forced them to resign when they introduced bonds, but the FCA haven't done anything to protect lenders in this case, because technically they can't, but hopefully they won't get full compliance. The clever marketing is advertising to pensioners interest rates better than savings rates but not too high, otherwise people think it's too good to be true. That's a big problem for those wanting higher rates. How many times do we hear on this forum "I'm a new investor and can't believe interest rates of 12%, what's the catch ?". The catch is expect some losses, but personally, I've maintained over 10%p.a. for the entire 18 months after losses. SS, AC and FS are my main platforms and I don't envisage that changing anytime soon. SS have a winning formula and I don't expect that to change. They've never advocated lowering rates, I don't see that happening now, because they can fill larger loans, which is a problem for other platforms.
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webwiz
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Post by webwiz on Oct 12, 2015 8:48:12 GMT
I agree with sqh. I would just add that in additional to being clever (I might have said sneaky) W's marketing has been very expensive including TV ads, so this is likely to be the main reason for low rates to investors rather than low rates to borrowers.
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