mikes1531
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Post by mikes1531 on Oct 20, 2014 21:11:46 GMT
One of the things that I do hope happens is that P2P platforms will be level headed enough to block the transfer of existing ISA/NISA funds into P2P NISAs, restricting investments to the transfer of existing loan parts and new monies only. If they don't the influx of funds could be devastating to interest rates as people force them down in fight to the bottom as they attempt to at least get their funds earning something. : Do you really think the introduction of P2P ISAs will cause that many people who have never invested in P2P to decide all of a sudden that they want to invest in P2P? I don't. If the people with money in the bank earning derisory rates haven't already decided to try P2P then I really don't think that the fact that they can do so via an ISA will make them rush to invest in a P2P ISA. So I don't expect there will be that many people rushing to do so. Some of those of us who already have invested in P2P would welcome the chance to transfer in money from their existing ISAs, but I wouldn't expect the sums involved to be large enough to be disruptive, especially if many of those people already have as much invested in P2P as they feel comfortable with. PS. Platforms that block the transfer of existing ISA/NISA funds into P2P NISAs won't be being level-headed -- they'll be acting against their own interests, because lower interest rates would make them more competitive with borrowers and should help expand their markets/turnover.
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P2P ISAa
Oct 20, 2014 21:19:32 GMT
via mobile
Post by oldnick on Oct 20, 2014 21:19:32 GMT
Those three letters ISA will add a certain veneer of respectability to P2P/B (no offence meant) but it remains to be seen how many new investors, or their financial advisors, will be swayed by them.
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pikestaff
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Post by pikestaff on Oct 22, 2014 9:31:54 GMT
One of the things that I do hope happens is that P2P platforms will be level headed enough to block the transfer of existing ISA/NISA funds into P2P NISAs, restricting investments to the transfer of existing loan parts and new monies only. If they don't the influx of funds could be devastating to interest rates as people force them down in fight to the bottom as they attempt to at least get their funds earning something. : Do you really think the introduction of P2P ISAs will cause that many people who have never invested in P2P to decide all of a sudden that they want to invest in P2P? I don't. If the people with money in the bank earning derisory rates haven't already decided to try P2P then I really don't think that the fact that they can do so via an ISA will make them rush to invest in a P2P ISA. So I don't expect there will be that many people rushing to do so. Some of those of us who already have invested in P2P would welcome the chance to transfer in money from their existing ISAs, but I wouldn't expect the sums involved to be large enough to be disruptive, especially if many of those people already have as much invested in P2P as they feel comfortable with. PS. Platforms that block the transfer of existing ISA/NISA funds into P2P NISAs won't be being level-headed -- they'll be acting against their own interests, because lower interest rates would make them more competitive with borrowers and should help expand their markets/turnover. I don't expect a flood of new money but I do expect the platforms to use ISAs as a marketing tool which will drive growth. The vast majority of that growth is likely to come from packaged products, not from people who micro-manage their loan parts. The tax relief will pay for the packaging, with something left over for higher rate taxpayers. I do expect to see some downward pressure on rates for direct lending, for example the 5 year rate on RS could well fall back to 5%, but how much pressure depends on the speed at which the platforms can grow the supply chain.
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j
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Penguins are very misunderstood!
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Post by j on Oct 22, 2014 13:20:55 GMT
I do expect to see some downward pressure on rates for direct lending, for example the 5 year rate on RS could well fall back to 5%, but how much pressure depends on the speed at which the platforms can grow the supply chain. Assuming either 0% or 0.5% annual management charge on p2p ISAs, what is the general consensus on downward rate movement on loans around the 10-12% mark? Couple that with possible new money influx, will platform use this as an excuse to decrease rates for retail investors in order to increase their margin?
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pikestaff
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Post by pikestaff on Oct 22, 2014 14:01:09 GMT
Hard to say. Pricing on TC is fairly transparent, but pricing on many other platforms is not. I tend to the view that platforms will make their extra money from increased volumes, and from ISA management fees, rather than by pushing up their fees on direct lending. But I could be wrong.
I think downward pressure is more likely to come from simple supply and demand (not enough loans). Also, if there is heavy competition between platforms for sponsors'/introducers' business, we may see sponsors'/introducers' take go up at our expense.
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agent69
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Post by agent69 on Nov 28, 2014 22:29:05 GMT
Courtesy of the TC site
A report in the FT on Saturday (22nd November 2014) quoting P2PFA chairman Christine Farnish saying that the introduction of P2P ISAs will be delayed until after the election is unfortunately correct. There is insufficient time to get the required legislation through before the election and the earliest it could now be achieved is the Autumn of 2015 assuming that whoever wins the election thinks its a good idea and doesn't have other priorities. It's a disappointment but not a surprise.
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