cwah
Member of DD Central
Posts: 949 
Likes: 468
|
Post by cwah on Jul 10, 2019 0:44:57 GMT
Hello I've been doing p2p since 2015 and in the uk we either have platform with low interest & low default (zopa, ratesetter, etc) around 5%> And there are the higher interest and high default (lendy, fundingsecure, moneything, etc) at 12%... After 4 years doing that I can say my average rate is probably 2-3% due to defaults. Potentially turning to negative depending on how the defaults are resolved. On the other hand, i've been on mintos which target international market and had consistently had 12% return in the last 3 years. Although I assumed it was dodgy I significantly increased my stake until now due to the FCA.... (Always them for the worse) I've came to this article today: p2pindependentforum.com/thread/15183/guardian-article-hints-laundering-moneyI was wondering if the high default in the uk platform is due to the proliferation of fraudsters? The london loan legal case is an absurd shock. The lender anonymity in platforms is a complete non sense. And much more. Why would the UK P2P perform so badly compared to their counterpart from Europe? Anyone has experience and feedback to share? I'm flabbergasted! |
|
benaj
Member of DD Central
N/A
Posts: 5,611
Likes: 1,739
|
Post by benaj on Jul 10, 2019 9:07:02 GMT
Well, let's have a look at the data around the world, credit rating and interest rate tradingeconomics.com/country-list/ratingtradingeconomics.com/country-list/interest-rateUK Fitch credit rating is AA and does not have negative interest rate like Switzerland EU counter part country like Estonia, has Fitch credit rating AA- and 0 interest rate. It's interesting Mintos offers better return for car loan in Estonia 10%+ with protection while Zopa / RS / LW offer much lower return as FCA authorised platforms. Arrears in Estonia seems high, car loans from Mogo has 65% in arrears without buyback and 14% in arrears with buyback. Not sure why there is such a big difference, while Zopa data suggests a lower arrears is less than 1% and less than 5% defaults. Those 12% platforms are not mainstreamed, the only platform getting close to mainstream is Lendinvest with similar return like RS. The truth is, bank in the UK does not like development loan for borrowers with poor / no track record because it is too costly; and these 12% platforms provide the gap. I don't know much about the London loan case as I am not involved, but it definitely shows there may be more unforeseen risks involved in p2p lending. The biggest risk I experience so far is definitely the state of the platform itself compared to the defaults. |
|
mrk
Posts: 807
Likes: 753
|
Post by mrk on Jul 10, 2019 15:43:26 GMT
Why would the UK P2P perform so badly compared to their counterpart from Europe? Anyone has experience and feedback to share? I'm flabbergasted! It's not so clear cut. Probably my worst investment ever was in Bondora (Estonia).
|
|
cwah
Member of DD Central
Posts: 949
Likes: 468
|
Post by cwah on Jul 10, 2019 21:26:28 GMT
Why would the UK P2P perform so badly compared to their counterpart from Europe? Anyone has experience and feedback to share? I'm flabbergasted! It's not so clear cut. Probably my worst investment ever was in Bondora (Estonia). I've seen Bondora many years ago. I've put £100 and nothing more. They never convinced me.
|
|
cwah
Member of DD Central
Posts: 949
Likes: 468
|
Post by cwah on Jul 10, 2019 21:29:03 GMT
Well, let's have a look at the data around the world, credit rating and interest rate tradingeconomics.com/country-list/ratingtradingeconomics.com/country-list/interest-rateUK Fitch credit rating is AA and does not have negative interest rate like Switzerland EU counter part country like Estonia, has Fitch credit rating AA- and 0 interest rate. It's interesting Mintos offers better return for car loan in Estonia 10%+ with protection while Zopa / RS / LW offer much lower return as FCA authorised platforms. Arrears in Estonia seems high, car loans from Mogo has 65% in arrears without buyback and 14% in arrears with buyback. Not sure why there is such a big difference, while Zopa data suggests a lower arrears is less than 1% and less than 5% defaults. Those 12% platforms are not mainstreamed, the only platform getting close to mainstream is Lendinvest with similar return like RS. The truth is, bank in the UK does not like development loan for borrowers with poor / no track record because it is too costly; and these 12% platforms provide the gap. I don't know much about the London loan case as I am not involved, but it definitely shows there may be more unforeseen risks involved in p2p lending. The biggest risk I experience so far is definitely the state of the platform itself compared to the defaults. I'm highly invested with Mogo and it has been very positive so far. I only do Buyback of course. But I probably have 12%+ average over the 2 years I have been with them. Very very good. If only I could say the same thing with Lendy... and other UK platform as well. Load of default and bad loans. And without buyback 
|
|
