upland
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Post by upland on Sept 3, 2022 10:20:02 GMT
Some fixed term are offering over 3% now with 85k protection. Loanpad recent rate increase helps a bit but if bank rates rise again the risk with Lp may be questionable if its worth it. I have investing here for the last few months however I am starting to have some concerns. LP is new and never navigated rising rates. It would not be the first p2p to steam into problems. Currently 3.3 % for 1 year fixed term with 85K protection and at the current rate of rise of interest rates over the last 6 months I think that it be nearer 4% by years end. I do wonder what could happen to their business. Does anyone have any idea how one could infer that things were not going to plan ?
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Sept 3, 2022 19:57:19 GMT
I am out of LP because the interest rates are not high enough for me to justify any risk whatsoever. However I do not see why rising interest rates generally would increase their risk of loan defaults by much.
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mogish
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Post by mogish on Sept 7, 2022 19:27:32 GMT
There are probably others a lot smarter than me can comment about platform risk , accurate Ltv etc My alarm bells tend to ring when platforms start changing rules or start blaming other events for reasons affecting investors. So far I believe loanpad remains a decent place to make a return. There are always risks, look at the stock market right now. Even "safe" bonds gave taken a hammering this year.
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Post by overthehill on Sept 7, 2022 20:50:00 GMT
There are probably others a lot smarter than me can comment about platform risk , accurate Ltv etc My alarm bells tend to ring when platforms start changing rules or start blaming other events for reasons affecting investors. So far I believe loanpad remains a decent place to make a return. There are always risks, look at the stock market right now. Even "safe" bonds gave taken a hammering this year.
I wasn't going to comment because I haven't done much research. I'm about to withdraw my remaining money for the time being but not because I have any concerns. I like that type of diversification model which I think entices people to accept lower rates.
On the other hand, AC hands-off investors are getting similar rates as Loanpad, lol !!
I don't want to hammer AC too hard as I've still got money in there, you can either laugh or cry about it, I've still got money which is allegedly mine in Archover, FundingSecure and Ablrate too.
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Post by indexfund on Sept 8, 2022 6:54:38 GMT
Some fixed term are offering over 3% now with 85k protection. Loanpad recent rate increase helps a bit but if bank rates rise again the risk with Lp may be questionable if its worth it. I have investing here for the last few months however I am starting to have some concerns. LP is new and never navigated rising rates. It would not be the first p2p to steam into problems. Currently 3.3 % for 1 year fixed term with 85K protection and at the current rate of rise of interest rates over the last 6 months I think that it be nearer 4% by years end. I do wonder what could happen to their business. Does anyone have any idea how one could infer that things were not going to plan ? Where are you getting 3.3% fixed with FSCS protection? Guessing it's Raisin/Tandem?
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mogish
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Post by mogish on Sept 8, 2022 7:08:39 GMT
Close bros offer 3.5 for 2 year fixed. Loads of others offering similar. Isa rates are still pretty poor.
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Balder
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Post by Balder on Sept 8, 2022 9:45:42 GMT
I have been very happy with Loanpad BUT I have withdrawn as I have real concern on what the impact will be on business from the cost of living increases especially fuel. I am concerned that previously profitable business will not be able to adsorb these increases and defaults will increase and subsequently previous valuations will be irrelevant as no one will be buying. So for me, for now, not work the risk.
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Post by overthehill on Sept 8, 2022 11:11:46 GMT
I have been very happy with Loanpad BUT I have withdrawn as I have real concern on what the impact will be on business from the cost of living increases especially fuel. I am concerned that previously profitable business will not be able to adsorb these increases and defaults will increase and subsequently previous valuations will be irrelevant as no one will be buying. So for me, for now, not work the risk.
I'm reading this as withdrawing from P2P as I don't see any bleak outlook affecting Loanpad only.
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Balder
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Post by Balder on Sept 8, 2022 11:42:30 GMT
I have been very happy with Loanpad BUT I have withdrawn as I have real concern on what the impact will be on business from the cost of living increases especially fuel. I am concerned that previously profitable business will not be able to adsorb these increases and defaults will increase and subsequently previous valuations will be irrelevant as no one will be buying. So for me, for now, not work the risk.
I'm reading this as withdrawing from P2P as I don't see any bleak outlook affecting Loanpad only.
Being in Lendy and Ablrate - yes spot on.
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upland
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Post by upland on Sept 8, 2022 12:24:35 GMT
Where are you getting 3.3% fixed with FSCS protection? Guessing it's Raisin/Tandem? Aldermore , Investec and others via the HL active savings account. There is a minimum.
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Post by jono75 on Sept 8, 2022 14:20:13 GMT
With the energy cap announcement, Goldman Sachs are predicting inflation will peak next month at 10%, was thinking that the BOE might start putting the rates back down again.
Does anyone else think that after the next rate announcement it might be worth a longer fix on FSCS accounts?
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Post by indexfund on Sept 8, 2022 14:25:34 GMT
With the energy cap announcement, Goldman Sachs are predicting inflation will peak next month at 10%, was thinking that the BOE might start putting the rates back down again. Does anyone else think that after the next rate announcement it might be worth a longer fix on FSCS accounts? Can see interest rate rises not being as extreme as expected, possibly even flattening sooner than expected too, but there is no way that rates will be reduced any time soon. The trend is still very much rising, as is most of the globe.
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jonno
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nil satis nisi optimum
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Post by jonno on Sept 8, 2022 14:27:50 GMT
With the energy cap announcement, Goldman Sachs are predicting inflation will peak next month at 10%, was thinking that the BOE might start putting the rates back down again. Does anyone else think that after the next rate announcement it might be worth a longer fix on FSCS accounts? I'd be very surprised if they pivot, but it may well slow them down. Don't forget, their inflation "target" is 2%.
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Post by jono75 on Sept 8, 2022 14:30:14 GMT
Thanks for your thoughts, think you could be right, probably more likely to flatten off.
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rocky1
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Post by rocky1 on Sept 8, 2022 14:37:18 GMT
andrew bailey is like a headless chicken on the whole damm lot of it.
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