andyb
Posts: 69
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Post by andyb on Nov 1, 2016 12:23:42 GMT
Hi all I'm just in the process of cashing out some of my more shady SS loans and fancy a go on Twino. This will be a bit of an experiment really and I'm interested in chancing it on the b/c grade loans. What I was wondering was the return anyon invested in these loans is getting after bad debts etc.
Cheers in advance
Andy
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Nov 1, 2016 13:59:01 GMT
I don't think those loans have been going for long enough to get any idea of return.
Even with Bondora I had very few defaults after a year, but their definition of profit makes the return look quite good even now many of the loans are paying nothing.
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Post by silverporka on Nov 1, 2016 14:00:00 GMT
Those B&C loans have only been available for a few months from memory. So far my experience has been good with them, only one late so far, but it's early days....
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andyb
Posts: 69
Likes: 36
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Post by andyb on Nov 1, 2016 14:57:32 GMT
Ok thanks, I think I will just put a couple of k in until I get a feel for it. The returns look to good to be true and I expect a few to be dead losses but I just hope I don't pick all the ones
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Post by geoffrey on Nov 20, 2016 8:54:04 GMT
If you're talking about 30% interest rates, please remember that if 30% of your loans go bad, you will make no return whatsoever. Looking at the number of delayed loans on Twino (and delayed doesn't necessarily mean bad, but it is very close to it), I think it would be hard to make a profit over the longer term at least with 30-40% interest rate. I may be wrong, but please consider this the equivalent of betting on horses.
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Post by geoffrey on Nov 20, 2016 9:00:24 GMT
People here should also remember the tax situation. Under UK tax law you're liable to pay tax on the interest received even if the loan subsequently goes bad, which can compound losses. And as it's P2P, there is no capital gains offset. The buy back guarantee protects you from this feature of the UK tax regime, since you don't lose your capital unless the platform itself goes bad.
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Post by saraph on Nov 20, 2016 10:12:12 GMT
Few of loans without guarantee actually settled in well for me. They make 9% of my portfolio and that moves my average return a bit above 15% p.a. I had two defaults so far, but one of them got repaid successfully. Still waiting how the second one goes.
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