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Post by davee39 on Mar 26, 2014 19:50:48 GMT
Looking at an income ISA though. Any recommendations? Whats your appetite for risk? I have built up an income portfolio with the countries leading Fund Supermarket. Yield is about 4.7% (after tax) across share income funds and bond high income funds, all selected from the wealth 150 list of preferred funds. Following the budget changes my non taxpaying wife has taken out a £3600 SIPP with them. Completely useless if converted to an annuity, but brilliant if tax free when cashed in over a number of years due to the £720 tax rebate paid in to the account each year.
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blender
Member of DD Central
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Post by blender on Mar 26, 2014 19:53:29 GMT
Merlin said Now we currently have a secondary market where loans are becoming increasingly difficult to move and prices obtained on the primary market are high, which must indicate a lack of buyers. So what next?
Advertising, as I keep saying. If we want more lender cash then the people with the savings need to know about p2p lending, the returns which can be obtained, and the particular offering from FC. At this time many are racing towards cash ISAs for very little interest and they just need to know about alternatives. |
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Mar 26, 2014 20:26:16 GMT
Yes there normally is a burst of ISA buying at this time of year but remember that to most lenders ISA's carry no risk and P2P does. Nearly all the saving community in the UK is seriously risk averse. This can be seen by the small percentage of the population who actually own equities, more own shares through Unit and Investment Trusts but it is still only a small minority. After all Unit Trusts are not that unlike P2P in concept, e.g. lots of people collectively investing small amounts into a collection of businesses. So if FC begins to look ever more risky, people will just walk away.
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Post by bracknellboy on Mar 26, 2014 20:46:14 GMT
If it is stalling. FC seem to be on a maxi-roll, with 115 loans listed at this moment. I hope they are informing borrowers that most will get nothing like the minimum rate which small loans achieve. And one I spotted today which I think was £150 or £100k which is being partly used to pay of an existing loan with a substantial amount outstanding. They ain't going to get the rate they had before. There was at least one if not several previous cases where a borrower stated on Q&A that they had been told that a single new aggregated loan was the only way they were allowed to come back to the trough. I wonder what was said to this borrower ?? Whether that was a broker or someone at FC that gave them that line I have no idea.
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Post by GSV3MIaC on Mar 26, 2014 21:08:48 GMT
If it is stalling. FC seem to be on a maxi-roll, with 115 loans listed at this moment. I hope they are informing borrowers that most will get nothing like the minimum rate which small loans achieve. Nine loans unfilled yet with <2 days to go. I wonder whether a lot of cash is going into ISAs before the deadline. I'd rather pay tax on 12% than get a tax free 3%!! Looking at an income ISA though. Any recommendations? I use Hargreaves Lansdowne .. Not the cheapest, but they have good systems and are easy to deal with. Be prepare for a ton of marketing/information though.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Mar 26, 2014 21:57:41 GMT
If it is stalling. FC seem to be on a maxi-roll, with 115 loans listed at this moment. I hope they are informing borrowers that most will get nothing like the minimum rate which small loans achieve. Nine loans unfilled yet with <2 days to go. I wonder whether a lot of cash is going into ISAs before the deadline. I'd rather pay tax on 12% than get a tax free 3%!! Looking at an income ISA though. Any recommendations? I use Hargreaves Lansdowne .. Not the cheapest, but they have good systems and are easy to deal with. Be prepare for a ton of marketing/information though.
Thanks for hints. I use Willis Owen. My late brother used HL. Poised to do a three way fund income ISA at around 5+%, no tax. Praying for Stock Market to drop just a smidge (if it does) before it is processed.
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fasty
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Post by fasty on Mar 26, 2014 23:15:30 GMT
Could there be a whole chunk of potential lenders thinking "Oh, I'll hold off a few weeks until I can do FC inside an ISA..." ? (and yes, I know that in reality it may take much longer to set up)
Having joined FC before they made a massive change to the minimum bid rates (and being foolish enough to try autobid), I'm now stuck with a whole stack of loan parts that simply can't shift at par on the secondary market. Frankly, well miffed.
I can now picture an impending situation where FC create a fashionable new account inside an ISA wrapper which will suck in all the new private lender money, leaving our existing non-ISA accounts high and dry (perhaps money coming in from institutional investors). I'm starting to give up hope of ever being able to extract much cash early.
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