vixen
New Member
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Post by vixen on Mar 13, 2015 17:17:16 GMT
Hello, I am a new forum member. For ages I have raving to my work colleagues about p2p lending. None are enthused, based on the risk. I'm glad I stumbled on this site, as I am agonizing over taking the plunge. I know the risks, I want to invest a 5 fig sum, I could afford to loose but like everyone it wouldnt be good, it would send me to bed with a bottle of gin for a month (or two). I was ready to upload the funds and then I read all the comments on the stats. Now I feel twitchy. Anyone got any thoughts as I'm now in p2p limbo land. Many thanks
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webwiz
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Post by webwiz on Mar 13, 2015 18:14:53 GMT
Zopa and Ratesetter are generally considered the lowest p2p platforms, but they are not very exciting. Wellesley is really p2b and IMHO is the safest p2b.
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Post by uncletone on Mar 13, 2015 19:40:44 GMT
Zopa and Ratesetter are generally considered the lowest p2p platforms, but they are not very exciting. Wellesley is really p2b and IMHO is the safest p2b. I'm sure that was " lowest risk p2p platforms".  Webwiz's choice coincides with mine. I would certainly recommend starting off within those three. (Speaking from the point of view of a retired non-financial expert juggling life savings day to day)
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webwiz
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Post by webwiz on Mar 13, 2015 19:59:35 GMT
Uncletone, thanks for spotting my typo. I was going to edit my post, but decided it was too Freudian slip type funny.
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elgerod
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Post by elgerod on Mar 13, 2015 23:43:39 GMT
Vixen, I agree with uncletone but, if you are a new investor, I think you will find Zopa rather frustrating. There is a queue for re-lent money which takes precedence over the queue for new money, so you will have to wait probably at least a couple of weeks before you can lend your new money. With Wellesley, on the other, you can lend your money immediately they receive it and, with Ratesetter, you can lend quickly and probably at higher rates than Wellesley. Sending money to and receiving money from all three platforms is reasonably quick.
Although I started first with Zopa over a year ago, in your position I would be tempted to start with Wellesley and Ratesetter for the reasons mentioned above.
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shimself
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Post by shimself on Mar 14, 2015 23:29:52 GMT
.. I think you will find Zopa rather frustrating. There is a queue for re-lent money which takes precedence over the queue for new money, so you will have to wait probably at least a couple of weeks before you can lend your new money. .. But seeing as your cash has probably been earning next to nowt in the bank for quite some time, it's not a disaster if it earns nowt in zopa for a couple of weeks.
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Post by Ton ⓉⓞⓃ on Mar 14, 2015 23:57:02 GMT
Hi vixen and welcome to the forum! Most (all?) Lenders diversify their lending; as in split their money up and lend on several different platforms and different Borrowers spreading the risk. I try never to be in a rush to get my money lent, I've made that mistake a couple of times now. Also I put a smallish amount in and read up how the platform will be using my money, as in; am I lending to the platform itself or directly to Borrowers etc. I also work out how my money will be coming back to me. With Zopa it will come back in numerous small payments over the period of the many micro-loans, not sure about RS but possibly similar to Zopa (perhaps someone else can answer that) and again I don't know about Wellesley but possibly as a lump sum depending how you lend it. So do think about when you want the money back to spent. All just my own ideas, I'm not an IFA etc... If you discover anything interesting do tell all. All The Best. |
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ilmoro
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'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 Mar 15, 2015 0:26:00 GMT
Hi vixen and welcome to the forum! Most (all?) Lenders diversify their lending; as in split their money up and lend on several different platforms and different Borrowers spreading the risk. I try never to be in a rus to get my money lent, I've made that mistake a couple of times now. Also I put a smallish amount in and read up how the platform will be using my money, as in; am I lending to the platform itself or directly to Borrowers etc. I also work out how my money will be coming back to me. With Zopa it will come back in numerous small payments over the period of the many micro-loans, not sure about RS but possibly similar to Zopa (perhaps someone else can answer that) and again I don't know about Wellesley but possibly as a lump sum depending how you lend it. So do think about when you want the money back to spent. All just my own ideas, I'm not an IFA etc... If you discover anything interesting do tell all. All The Best. Yes, RS same as Zopa for 3 & 5yr markets with regular monthly payments of capital & interest, 1yr comes back as lump sum at term. Wellesley pays interest monthly & then capital as a lump sum at term or you can opt to have interest & capital at term.
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Post by Deleted on Mar 26, 2015 16:00:03 GMT
Vixen, to give you a flavour of my journey. I started with an objective of invest £60k and earn 9.5% per year. I read a bunch and decided that I wanted to invest in max £600 chunks but I wanted a max of 5 portals. In most of the portals I found there is a season to lend, so for example ratesetter is paying top dollar right now while funding circle is way down, which was the other way around 6 months ago. So rushing to invest is not the route. You also need to value your time....some portals need lots of time to make it work while others need no time at all, again FC is time hungry while RS needs very little effort.
On top of these portals that offer a wide range on types of borrower, there is also Assetz which offers green FITS income as well as property, Funding Secure which offers 6 monthly loans on general stuff and property and the new boy on the block MoneyThing which seems to offer 6 monthly pawn broking but is so new it may change its business model yet.
I don't like to lend on aircraft but up to you
Just my story and what I've learnt. Hope it helps
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rogerbu
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Post by rogerbu on Mar 27, 2015 19:08:58 GMT
I agree with most of the above. Particularly aim to diversify across 4-6 platforms with different drivers. ie probably not both Zopa & Ratesetter as they are very similar (RS usually has the higher rates)
My other advise would be to not be in a great hurry - drip feed the money in as you learn. You will almost certainly want to put a portion of your money into the higher returns later. If you have tied it all up early, it won't be available when you wont it.
You suggested that you had a fairly big pot that needed a home - Wellesley's 30 day notice at 3.66% might be attractive compared to a cash ISA.
Also. Think before you start. If you are married and one spouse is a lower tax payer than the other. Set up the accounts in that name.
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Post by captainconfident on Mar 30, 2015 0:03:18 GMT
Festering Cystitis, which we all love to hate, has been established long enough to see their three year loans run successfully to term, and most people diversified over that platform have returned about 7% after bad debt. It's reliable.
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shimself
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Post by shimself on Mar 30, 2015 18:54:21 GMT
Festering Cystitis, which we all love to hate, has been established long enough to see their three year loans run successfully to term, and most people diversified over that platform have returned about 7% after bad debt. It's reliable. effing C**** * won't let me play because I'm living in far flung France. Anyway, what's the source for your 7% stat please?
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am
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Post by am on Mar 30, 2015 20:27:08 GMT
Festering Cystitis, which we all love to hate, has been established long enough to see their three year loans run successfully to term, and most people diversified over that platform have returned about 7% after bad debt. It's reliable. effing C**** * won't let me play because I'm living in far flung France. Anyway, what's the source for your 7% stat please? FC's statistics have 21.3% of diversified lenders achieving 7% or more. Not most. Those statistics have 58.7% of diversified lenders achieving 6% or more. You could argue that that is most, but it's debatable - is most a bare majority or is it more. 90% achieve 5% or more, which I think unequivocally qualifies as most. www.fundingcircle.com/statistics
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Post by captainconfident on Mar 30, 2015 23:55:49 GMT
And there was me thinking that, as in most other departments, I'm completely average.
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SteveT
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Post by SteveT on Mar 31, 2015 13:45:38 GMT
I'd love to see Foetid Cheeseburgers' average return figures split between the Auto-bidders and those selecting loans / loan parts manually. I've a feeling the former group are subsidising the latter quite considerably.
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