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Post by df on Sept 7, 2018 18:43:30 GMT
Yes, you can get 5-6% relatively stable return from LW, GS, RS, AC, UB etc. without much effort and time consumption. FS is still my second platform in terms of funds invested, but I wouldn't recommend this adventure to anyone. anyone or everyone? Anybody who who thinks that advertised 12-13% are achievable on FS.
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benaj
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Post by benaj on Sept 7, 2018 19:20:48 GMT
Anybody who who thinks that advertised 12-13% are achievable on FS. It is definitely not a 12-13% saving account. To be fair, prior the FSCS protection, even bank saving accounts are not safe. Don't forget the Lehman Brothers, who would had imagine the investment with them wasn't safe.
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IFISAcava
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Post by IFISAcava on Sept 8, 2018 15:27:54 GMT
I just sold my last loan on the FS non-ISA. Strategy was to sell early with (if necessary) a discount so as to minimise tax. It was a smallish 5 figure investment running total before I started drawing down.
I don't have the inclination to calculate the exact figures, but in approximation after 2 years or so:
Zero defaults
Average loan held for about 3 months
Average discount about 0.5% (this reducing return by 2% pa equivalent)
Average return after tax therefore about 10.5% pa (pre-tax equivalent at 45% marginal rate would be 19.1 % pa)
Since liquidity has dried and loans would not necessarily sell even at 1% discount now, I have left FS for now. It was also time consuming (both buying and selling multiple small parts, checking sales queues to optimise discount, etc).
Interestingly, my FS IFISA where I was more willing (initially) to let things go to term and/or to buy loans mid-term at a discount has done worse. Since my experience of the best strategy for a return was to sell before term, there was therefore no benefit of using an IFISA for FS; hence all but £600 (defaulted or stuck over term) has been transferred elsewhere.
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lucky
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Post by lucky on Sept 8, 2018 16:22:42 GMT
Could somebody with a brain (I don’t possess one) clarify something for me. FS claim 11.2% return for investors but in the September news letter they give a total lending amount of £272,734,609 and total interest to date £11.8m, according to my calculations that’s approximately 4.3%, I’m obviously mistaken, what am I doing wrong?
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locutus
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Post by locutus on Sept 8, 2018 16:27:16 GMT
Could somebody with a brain (I don’t possess one) clarify something for me. FS claim 11.2% return for investors but in the September news letter they give a total lending amount of £272,734,609 and total interest to date £11.8m, according to my calculations that’s approximately 4.3%, I’m obviously mistaken, what am I doing wrong? Not everything lent out has yet repaid interest.
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arby
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Post by arby on Sept 8, 2018 17:06:03 GMT
Could somebody with a brain (I don’t possess one) clarify something for me. FS claim 11.2% return for investors but in the September news letter they give a total lending amount of £272,734,609 and total interest to date £11.8m, according to my calculations that’s approximately 4.3%, I’m obviously mistaken, what am I doing wrong? Not everything lent out has yet repaid interest. Or will repay interest 
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Post by dan1 on Sept 8, 2018 17:32:37 GMT
Could somebody with a brain (I don’t possess one) clarify something for me. FS claim 11.2% return for investors but in the September news letter they give a total lending amount of £272,734,609 and total interest to date £11.8m, according to my calculations that’s approximately 4.3%, I’m obviously mistaken, what am I doing wrong? The 11.2% is annualised and based on completed loans only. You'd need to calculate how many days the capital was lent for before being repaid to derive the effective annual rate.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 8, 2018 19:05:08 GMT
Could somebody with a brain (I don’t possess one) clarify something for me. FS claim 11.2% return for investors but in the September news letter they give a total lending amount of £272,734,609 and total interest to date £11.8m, according to my calculations that’s approximately 4.3%, I’m obviously mistaken, what am I doing wrong? The 11.2% is annualised and based on completed loans only. You'd need to calculate how many days the capital was lent for before being repaid to derive the effective annual rate. You also multiply by your IQ divide by no of mg paracetamol you need to relieve the headache you get trying to work out LTV/LTGV of X no of tranches. Finally cast the runes and get the answer . 
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