borofan
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Post by borofan on Jul 21, 2015 11:48:02 GMT
I would like to invested about £20k into P2P leaders over a range of different sites, lending for one year max.
I've joined ratesetter. I found it odd that money was being lent over 1 year for 4.3% yesterday, and today it is only about 3.6%.
What is the reason for that?
Anyway, the money I had queued at 4.4% was cancelled and I invested it in the 30 day market instead.
But my main question is which other sites should I be looking at for a range of returns from about 3% to 10%?
I've been looking at Funding Circle and Savings Stream. Are there other sites that would be recommended above them?
Thanks.
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mv
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Post by mv on Jul 21, 2015 12:04:15 GMT
Is there any particular reason you only want to invest for one year? Are your dates very strict? Are you prepared to risk making a loss in pursuit of higher returns?
Be aware that for some platforms, there is a reasonable chance that a one-year term could be extended beyond your control. For others (or the same), a loan could be paid back early
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pom
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Post by pom on Jul 21, 2015 12:04:48 GMT
Hi from an "expert" of 3 months experience  First bit of advice - take your time. Ratesetter's had some changes recently (in how they calculate their market rate, and then a cashback offer) which has left it a bit unpredictable - check out the threads on the ratesetter board. If you're only wanting to tie up your money for a year then that will restrict your choices (I'd beware of FC, as until you get your bid strategy sorted you may end up with some loan parts that may take a while to sell...and it takes forever to build up your portfolio). Saving Stream I like, also Moneything (which doesn't have a secondary market but everything's short). Funding Secure also does short term loans but I've only put a bit in them as something about them leaves me uneasy. If you really think 3%+ plus is OK (you'll soon realise there's a lot better out there) then Landbay is supposed to be pretty easy to get your money out of early, but not entirely guaranteed. LendInvest is all a year or less, but min bid is 1k, which is probably too much if you're starting with 20k. ABLrate has potential tho the deals are a bit slow to turn up at the moment, on the plus side the secondary market appears to be likely to let you get out early. Hope this helps - others will have their favourites |
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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 Jul 21, 2015 12:05:31 GMT
I would like to invested about £20k into P2P leaders over a range of different sites, lending for one year max. I've joined ratesetter. I found it odd that money was being lent over 1 year for 4.3% yesterday, and today it is only about 3.6%. What is the reason for that? Anyway, the money I had queued at 4.4% was cancelled and I invested it in the 30 day market instead. But my main question is which other sites should I be looking at for a range of returns from about 3% to 10%? I've been looking at Funding Circle and Savings Stream. Are there other sites that would be recommended above them? Thanks. Wellesley, Fruitful might be worth considering. Possibly Moneything, Funding Secure. Is the one year a firm cutoff? SS is possibly your best bet for returns & liquidity.
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borofan
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Post by borofan on Jul 21, 2015 12:40:08 GMT
Thanks. I may be tempted to dip my toe into longer term lending if I feel the risk/reward is worth it.
Wellesley have an 18 month deal at the moment. Considering putting £3k in and also getting an ipad mini via a certain site...
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adrianc
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Post by adrianc on Jul 21, 2015 13:11:12 GMT
Look at some of the property fixed-rate deals on FC - there's six- and twelve-month secured 10%+1% cash back loans being filled there at the mo, and plenty on the secondary.
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james
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Post by james on Jul 22, 2015 9:05:32 GMT
But my main question is which other sites should I be looking at for a range of returns from about 3% to 10%? I've been looking at Funding Circle and Savings Stream. Are there other sites that would be recommended above them? Why constrain yourself to only 10% when you can readily get 12% from MoneyThing (secured pawn-based lending with short loan durations, all or almost all less than a year) or Ablrate (often 12%, depends on the loan, again secured on property of some type, loan durations normally longer than a year but not always). Ablrate does have an active secondary market, MoneyThing doesn't. If there's a secondary market use that to sell after getting a longer term loan.
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bigfoot12
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Post by bigfoot12 on Jul 22, 2015 9:19:45 GMT
If there's a secondary market use that to sell after getting a longer term loan. Or if there is a secondary market it might be better to buy loans that have less than 12 months remaining. But watch out many people sell loans that have a late payment or some other credit negative indicator.
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james
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Post by james on Jul 22, 2015 9:34:54 GMT
Yes, buying with shorter term is another way to go.
One thing about the Ablrate secondary market is that they have said that they will block selling/buying on the secondary market if a loan is impaired in some way. That can be good or bad but if you just want to be sure you're not getting a loan with something to think about, it's useful. Personally I prefer to be able to buy or sell while impaired. Since Ablrate tend to do relatively large loans the secondary market looks likely to be the fast way to get money invested there.
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james
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Post by james on Jul 22, 2015 10:30:45 GMT
There's nothing wrong with being a prophet of doom.  Platform risk is real, even with the FCA requirements. Still, there are opportunities to significantly improve returns without exposing a particularly large portion of capital to new platforms. Around 20% could double the average return on the 100% and it's not really that likely that a platform will turn out to be fraudulent or fail in a bad way for investors. That said, diversification caps should be applied to all platforms, just in case. I don't anticipate putting more than 10-15% of my own investable assets into any platform just to protect me from a particularly bad outcome. Someone with lower risk tolerance than me might use 5% or even less per platform and/or vary it depending on the properties of the platforms concerned. |
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Post by redandblack on Jul 28, 2015 13:02:44 GMT
I would like to invested about £20k into P2P leaders over a range of different sites, lending for one year max. I've joined ratesetter. I found it odd that money was being lent over 1 year for 4.3% yesterday, and today it is only about 3.6%. What is the reason for that? Anyway, the money I had queued at 4.4% was cancelled and I invested it in the 30 day market instead. But my main question is which other sites should I be looking at for a range of returns from about 3% to 10%? I've been looking at Funding Circle and Savings Stream. Are there other sites that would be recommended above them? Thanks. Hi - Fellow Newbie here. The ones I like are Archover, which has an insurance cover on everything except fraud, and Money&Co., which has good explanations and loads of news about P2P, but only does loans every now and then. Do you, does anyone, know of a good 'managed' service? I have a similar amount of money to invest and I want to park it somewhere safe and get about 5-6% interest and forget about it. Sorry if this has been asked and answered a million times before, but I can't see anything here that fits the bill. Thanks, R&B
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ilmoro
Member of DD Central
'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 Jul 28, 2015 13:51:08 GMT
I would like to invested about £20k into P2P leaders over a range of different sites, lending for ones (redoneyear max. I've joined ratesetter. I found it odd that money was being lent over 1 year for 4.3% yesterday, and today it is only about 3.6%. What is the reason for that? Anyway, the money I had queued at 4.4% was cancelled and I invested it in the 30 day market instead. But my main question is which other sites should I be looking at for a range of returns from about 3% to 10%? I've been looking at Funding Circle and Savings Stream. Are there other sites that would be recommended above them? Thanks. Hi - Fellow Newbie here. The ones I like are Archover, which has an insurance cover on everything except fraud, and Money&Co., which has good explanations and loads of news about P2P, but only does loans every now and then. Do you, does anyone, know of a good 'managed' service? I have a similar amount of money to invest and I want to park it somewhere safe and get about 5-6% interest and forget about it. Sorry if this has been asked and answered a million times before, but I can't see anything here that fits the bill. Thanks, R&B How long are you planning to leave it for? Wellesley is the obvious answer, pays 5.1 3yr, 6.3 5yr (assuming interest rolled up until maturity), Wellesley spread the cash across multiple loans (redone each week) so you're diversified across their loan book though technically you are lending to Wellesly rather than individual borrowers. If you need your money early you can exit but will lose the difference between your rate & the one applicable to the actual period invested. Asset secured & provision fund. Free mini ipad if you invest 3k through a site that makes you feel epic. Other options would be Ratesetter with repayments set to reinvest though subject to rate fluctations, provision fund, Fruitful, 6% secured on commercial mortgages, provision fund, small, no real stats yet, invite only, easy withdrawl (operates like a saving account)
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sqh
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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 Jul 28, 2015 23:17:03 GMT
Hi redandblackUmm "The ones I like are Archover, which has an insurance cover on everything except fraud..."Firstly, I wonder what definition of fraud the insurance company likes to use ? Secondly, with no asset backed security and no DG or PG it's all or nothing. I'd want a rate of 15%+. On a more constructive note, I would suggest investing in Assetz Capital Green Energy Income Account (GEIA). It offers a 7% return with asset backed security and a provision fund. My understanding is it offers the advantages of liquidity and automatic reinvestment of interest, allowing access to your money at short notice. I don't use this fund, but I do invest in the underlying investments without the provision fund. |
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registerme
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Post by registerme on Jul 28, 2015 23:18:56 GMT
How sustainable will that be given the recent gov announcements about reducing "green" / sustainable etc energy subsidies?
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james
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Post by james on Jul 29, 2015 0:46:07 GMT
I would suggest investing in Assetz Capital Green Energy Income Account (GEIA). It offers a 7% return with asset backed security and a provision fund. That's something I reject on environmental grounds. Among other things it funds onshore wind turbines. Not that the return is enough to be very interesting either, with 10%+ readily available for asset-backed investing.
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Platform risk is real, even with the FCA requirements. Still, there are opportunities to significantly improve returns without exposing a particularly large portion of capital to new platforms. Around 20% could double the average return on the 100% and it's not really that likely that a platform will turn out to be fraudulent or fail in a bad way for investors.
