ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 13, 2017 14:19:17 GMT
www.p2pfinancenews.co.uk/2017/01/12/lendingcrowd-launch-ifisa/'Once approved, the LendingCrowd IFISA will work differently to the rest of the platform, so rather than investors selecting their own loans, the product will automatically allocate, invest and diversify a minimum of £1,000 and aim for a target rate of 6.5 per cent'
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Post by laidbackgjr on Jan 13, 2017 16:12:07 GMT
That's a real shame - I was hoping that I would have been able to have an ISA wrapper on my existing investments even if it took a while to sell and trade back in.
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ablender
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Post by ablender on Jan 13, 2017 17:08:27 GMT
Such an ISA would not be for me, even if it was not on LC.
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Post by GSV3MIaC on Jan 13, 2017 18:57:25 GMT
If I wanted one like that I'd just buy P2P Investment Trusts (eg the FC one) which yield ~7% and can already be ISAd (and swapped out for bonds or shares or whatever when the wind changes).
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Post by lionelrichtea on Jan 13, 2017 21:05:15 GMT
Why only 6.5%? You could spread £1k over 50 loans on the exchange and get something like a 9% average rate.
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ablender
Member of DD Central
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Post by ablender on Jan 13, 2017 22:31:07 GMT
Why only 6.5%? You could spread £1k over 50 loans on the exchange and get something like a 9% average rate. If you were allowed to select the loan parts that you want to buy on the loan exchange you would even do better than that, more like 11% or 12%.
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Post by lionelrichtea on Jan 13, 2017 22:53:56 GMT
Why only 6.5%? You could spread £1k over 50 loans on the exchange and get something like a 9% average rate. If you were allowed to select the loan parts that you want to buy on the loan exchange you would even do better than that, more like 11% or 12%. Yeah, I was being rather conservative! Not sure why anyone would go for a 'targeted' 6.5% when they could do much better with a bit of clicking.
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TheDriver
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Slightly bonkers
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Post by TheDriver on Jan 14, 2017 1:23:01 GMT
But not with a real Bad Debt rate of around 5%! All it seems to do is cap the return, not limit losses?
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fp
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Post by fp on Jan 14, 2017 8:47:31 GMT
Sounds like you'll be better off just paying the tax.
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pom
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Post by pom on Jan 14, 2017 8:56:44 GMT
I'd guess they're planning on bidding the money at min rate on all the new loans and are quoting 6.5% to account for (some of the likely) losses. They're probably hoping it'll bring the average rates down and make them more competitive with borrowers...I shall look on the bright side and hope it makes the older SM loans look more attractive given it's taking a loooong time to sell my last few parts
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pom
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Post by pom on Jan 14, 2017 11:18:31 GMT
..the pessimistic view would be that any further drop in rates would drive manual lenders away totally and I'll be tied in til the end of the loans...
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ablender
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Post by ablender on Jan 14, 2017 13:17:56 GMT
..the pessimistic view would be that any further drop in rates would drive manual lenders away totally and I'll be tied in til the end of the loans... Don't jinx it more than it already is, please!!
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TheDriver
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Slightly bonkers
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Post by TheDriver on Feb 3, 2017 21:49:17 GMT
So both the two new funds were announced with a minimum £1000 investment, targeting 6.5% with automatic investment. So I assume they are the same fund, one just wrapped in an ISA - except that the Accounts page now says the Growth fund targets 6.0%!
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 15, 2017 15:47:12 GMT
Has anyone spotted the withdrawal fee for the whole amount withdrawn whether uninvested or not? Suposed to be fully flexible allowing you to put in and take out money in the same year. Takes 6.5 down to 5.5 ish for those wanting the wrapper but after higher rates on the platform.
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Post by laidbackgjr on Feb 15, 2017 16:19:02 GMT
And as expected no means of easily moving money from existing investments to inside the ISA wrapper which is frustrating - but as I'm currently earning around 9% after bad debt - I think I'll just keep the current portfolio and pay some tax!
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