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Post by organum on May 29, 2015 8:20:55 GMT
I have looked into Ratesetter and put in the minimum to test the waters.
As of this morning the average rate is 4.4% and there is 207k in the queue looking to be placed.
Hardly seems worth the effort! I also have 1k in Funding Circle with similar results.
Wellesley thus far has been fine and no problems at all BUT everytime I see those TV adverts I wonder if it is all too good to be true. There seems to be too much money chasing too few loans.
I put in the money when rates were 5.5% but that comes out in October as does Birmingham Midshires 5 years at 5.03% monthly.
We are all in the same boat !!
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Post by shadoh on May 29, 2015 10:27:19 GMT
try out fruitful. new boys on the block.
also a good idea put in spouses name. thanks for that.
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Post by batchoy on May 29, 2015 11:28:06 GMT
I have looked into Ratesetter and put in the minimum to test the waters. As of this morning the average rate is 4.4% and there is 207k in the queue looking to be placed. Hardly seems worth the effort! I also have 1k in Funding Circle with similar results. Wellesley thus far has been fine and no problems at all BUT everytime I see those TV adverts I wonder if it is all too good to be true. There seems to be too much money chasing too few loans. I put in the money when rates were 5.5% but that comes out in October as does Birmingham Midshires 5 years at 5.03% monthly. We are all in the same boat !! I'm not sure about there being too much money chasing too few loanx, as checking this morning I am 100% invested on all my investments, and there appears to be a substantial and healthy pipeline of upcoming loans. Also the variable rates on the 30 day notice accounts are a good indicator of the health of the platform, whilst they have dropped a few points recently they are still reasonably good given that there is no waiting on the earning of interest.
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Post by closetotheedge on Aug 17, 2015 6:02:11 GMT
I have an old ISA maturing next week and fancied the Wellesley 5 year P2P product as a home for it. Any current Wellesley users fancy referring me so we both get a £50 kickback? First to private message me with the link wins.
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webwiz
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Post by webwiz on Aug 17, 2015 8:34:45 GMT
Sent you a PM
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vixen
New Member
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Post by vixen on Aug 17, 2015 11:43:31 GMT
Thank you everyone for all of this advice and personal experience. You all seem so experienced in what your doing. As a newbie can I ask has all your knowledge been picked up from on here or can you give a fledging some advice on reading materials etc to get a grips and lessen my liability. Many thanks to everyone  |
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webwiz
Posts: 1,133
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Post by webwiz on Aug 17, 2015 12:17:31 GMT
Thank you everyone for all of this advice and personal experience. You all seem so experienced in what your doing. As a newbie can I ask has all your knowledge been picked up from on here or can you give a fledging some advice on reading materials etc to get a grips and lessen my liability. Many thanks to everyone IMHO you can't beat experience, but gaining it can cost. So my advice is to try out a few platforms with small amounts and use these forums to avoid the big disasters.
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Post by mrclondon on Aug 17, 2015 15:08:15 GMT
Thank you everyone for all of this advice and personal experience. You all seem so experienced in what your doing. As a newbie can I ask has all your knowledge been picked up from on here or can you give a fledging some advice on reading materials etc to get a grips and lessen my liability. Many thanks to everyone Welcome to the forum vixen. There is very little good beginners material available, so this forum is probably the best source of info - don't be afraid to ask if you don't understand something - there is no such thing as a silly question on here. Most mainstream media when covering p2p seem fixated on the original 3 platforms (Ratesetter, Zopa and Funding Circle) with just occiasonal plugs for other platforms. That said, RS/ZP are generally perceived as lower risk platforms and do make a good introduction to p2p. The key thing to remember, and apologies for stating the obvious, is the headline yield is generally a reflection of the risk, and you will need to allow for capital losses reducing that yield. RS/ZP/W&Co yields may look low, but the risk of capital loss is proportionally lower than on the 12% plus platforms.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Aug 17, 2015 17:40:27 GMT
Thank you everyone for all of this advice and personal experience. You all seem so experienced in what your doing. As a newbie can I ask has all your knowledge been picked up from on here or can you give a fledging some advice on reading materials etc to get a grips and lessen my liability. Many thanks to everyone Testing out several platforms is the best way to get a feel of which sites are best for you, but before you deposit any money, contact the P2P platform and ask them to provide information on their loans that have failed. It's important to understand which loans fail and how much is lost. Some sites are very bad at revealing the information on defaulted loans, some even remove the information from their own platforms so that their own lenders are kept in the dark. If you get blanked, or get the answer "for legal reasons we can't reveal any details" then avoid them. Other platforms are very open to other lenders reading the past loan history, these are the one's I would recommend.
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james
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Post by james on Aug 20, 2015 2:21:51 GMT
The key thing to remember, and apologies for stating the obvious, is the headline yield is generally a reflection of the risk, and you will need to allow for capital losses reducing that yield. RS/ZP/W&Co yields may look low, but the risk of capital loss is proportionally lower than on the 12% plus platforms. Lets consider some 12% plus platforms and the risk of loss due to borrower defaults: 1. SavingStream: loans secured on physical property that can be sold if the borrower defaults. But not quite directly secured for investors yet because lending is to the platform. 2. MoneyThing: loans secured on physical property at no more than 50% loan to value that can be sold if the borrower defaults and in most cases the pawn business that the loans are to takes losses first, not investors. While the platform does the lending, the investors have a security lein on the property. 3. Ablerate: loans secured on physical property, invoices or similar that can be sold if the borrower defaults. The RS/ZP/W&Co options mentioned have security that is usually worse (protection funds) or no better than comparable secured lending. Where there is a potentially substantial difference is in the risk of failure of a new P2P platform that might not yet have reached a loan volume that is profitable long term. All platforms need to have a way to deal with this, old or new, and it's one of the requirements of FCA regulation that they do. Using the newer platforms singificantly increases the risk that you'll experience a platform failure. Doubling the interest rates is a pretty big benefit to be obtained from taking a higher risk that the platform might fail and have to use its recovery plan or be sold to another platform. Diversification across platforms is very important to keep the exposure to any individual platform at a reasonable level, whether that is an older one or a new one.
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Post by wellesleyco on Aug 20, 2015 7:39:35 GMT
james Wellesley & Co only lends on an asset backed basis and retains a sub-ordinated piece of every loan in its loanbook.
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james
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Post by james on Aug 20, 2015 9:24:00 GMT
james Wellesley & Co only lends on an asset backed basis and retains a sub-ordinated piece of every loan in its loanbook. Yes, Wellesley is the one I described very briefly as "no better than comparable secured lending". Somewhat less secure than MoneyThing's typical loans where the pawnbroker keeps 100% of the initial credit risk with 50% LTV and somewhat more secure than typical Ablrate due to the retained piece and initial loss taking. Various differences in the details that matter but I was trying to be brief. It might be quite interesting to know how you view your position on rates and security advantages or disadvantages relative to those receiving more votes than Wellesley the Where would you invest most P2P money in August 2015? poll where Wellesley is currently ranked 11th, with SavingStream, MoneyThing and Assetz the leading three choices. It would be particularly interesting if you believe that those placing votes are not valuing some platform correctly and why. Of course none of this means that the Wellesley product is anything other than excellent. Just that it's a competitive world.
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Post by wellesleyco on Sept 8, 2015 9:40:06 GMT
james The clear difference between Wellesley and those platforms is in the business model. Whether we are favored by active or passive investors and how many of each are on this forum is hard to tell. It is a growing market full of participants, which are all different and there are growing numbers on investors, all with different wants, needs and risk appetites. We operate in the way we feel is the most sustainable given our industry leading growth (AltFi Awards 2014). We continue to lead Innovation (ISA eligible Listed Bond) and continue to create products that will satisfy all investors, without compromising on our goal to deliver risk adjusted returns for many years to come.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Aug 25, 2016 16:52:48 GMT
james The clear difference between Wellesley and those platforms is in the business model. Whether we are favored by active or passive investors and how many of each are on this forum is hard to tell. It is a growing market full of participants, which are all different and there are growing numbers on investors, all with different wants, needs and risk appetites. We operate in the way we feel is the most sustainable given our industry leading growth (AltFi Awards 2014). We continue to lead Innovation (ISA eligible Listed Bond) and continue to create products that will satisfy all investors, without compromising on our goal to deliver risk adjusted returns for many years to come.
25 August 2016 .... best P2P rate (2 year) ........... 2.35% 
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teddy
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Post by teddy on Aug 25, 2016 17:20:27 GMT
And to think that 6 months ago, I was getting over 5% for 5 yrs at Wellesley.
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