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Post by khampson on Sept 6, 2016 11:30:07 GMT
Hi what company will give me the best interest rate for short notice to my account? I currently have my money in Landbay and I get almost instant access to my money, the rate is about 4% pa, and is protected by their provision fund, Is this the best rate available for a short notice account? I know Assetz capital will give me around 3.75% (instant) and 4.25% (30 day notice) and Ratesetter is around 2.5 to 3.2% (30 day notice)
Can landbay be beaten?
Thanks
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SteveT
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Post by SteveT on Sept 6, 2016 11:46:17 GMT
[Mod hat firmly off] All those you mention still rely on there being other lenders ready and willing to take over your loan parts when you wish to sell (the sale & purchase isn't 1:1 with the AC accounts, but even the QAA would ultimately need to suspend withdrawals if there was ever a "run"). So if you're really looking to maximise your return, you might also consider other "highly liquid" P2P options. For example, 12% loans on MT rarely hang about on the SM for more than a few minutes, with the possible exception of AE portfolio loans in times of glut. Similarly, there are loans paying 10-12% on AC that can be accumulated relatively easily and generally sell very quickly indeed. Even property loans on FC will return 7% (after fees) and usually will sell in minutes at par provided they still have at least a couple of months to run. None of these come with the fig-leaf of a provision fund though  |
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Post by khampson on Sept 6, 2016 12:05:52 GMT
[Mod hat firmly off] All those you mention still rely on there being other lenders ready and willing to take over your loan parts when you wish to sell (the sale & purchase isn't 1:1 with the AC accounts, but even the QAA would ultimately need to suspend withdrawals if there was ever a "run"). So if you're really looking to maximise your return, you might also consider other "highly liquid" P2P options. For example, 12% loans on MT rarely hang about on the SM for more than a few minutes, with the possible exception of AE portfolio loans in times of glut. Similarly, there are loans paying 10-12% on AC that can be accumulated relatively easily and generally sell very quickly indeed. Even property loans on FC will return 7% (after fees) and usually will sell in minutes at par provided they still have at least a couple of months to run. None of these come with the fig-leaf of a provision fund though Thank you for that SteveT, I have thought about high liquid p2p lenders, I currently use bondmason for my longer term investment (currenlty 9.5% before fees and bad debt) I use them as well as landbay as I like the low maintenance accounts as I don't have the time to study all the loans, what ever I use I would require and auto bid function to get my money out there, I have used Funding circle, Asseetz capital, Zopa, Ratesetter, Bondmason and Landbay. Landbay and Bondmason are the only 2 I have found that dont need my time to invest, I did like funding circle but I found myself with alsorts using the Auto bid (buying loand with previous bad payment history) however I am willing to give others a try that will let me have a hands off approach, what will give me this? I do have an account with MT but have never invested here? Thank you
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SteveT
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Post by SteveT on Sept 6, 2016 12:21:28 GMT
About the closest to "hands off" bidding would be to set buying targets on AC for a number of loans via their MLIA and leave the "shrapnelator" to accumulate holdings in each loan over time (as others sell). You've no guarantee how quickly funds will be lent out, although of course your money can earn 3.75% swept into the QAA in the meantime. However I've had £5-10k successfully lent across 50+ loans in a matter of 3 or 4 weeks. The process is faster when several other new loans are launching (both because you can bid for an allocation directly and because other lenders may reduce their holdings to diversify into new loans).
MT requires manual bidding, although you get 24 hours notice of each new loan launch and then only need log in for a few seconds at 4pm to bid.
FC definitely would need manual bidding (Autobid does not let you lend only to property loans)
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JamesFrance
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Post by JamesFrance on Sept 6, 2016 12:58:05 GMT
One that would satisfy the requirements you mention is Twino, which is based in Latvia but will now let you have an account in pounds if you don't want to use euros. The auto invest will run without any input from you once it is set up and you could choose one month loans at 10/12% with automatic buyback if they become 30 days late, including interest for the whole period. A few loans are extended for up to 6 months if they pay interest only but these seem to resell quite easily at par if you need to get all the money out.
This is one of the very few platforms where you could invest a sizeable amount on day one with good diversification. They now have a lot of company financial details on the site, so you can see what you think about platform risk.
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adrianc
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Post by adrianc on Sept 6, 2016 14:49:16 GMT
Pick your loans right, and you've got damn near instant 12% over on SS, almost all of the time...
It's all about how big a liquidity risk you're willing to take.
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stevio
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Post by stevio on Sept 7, 2016 18:27:55 GMT
One that would satisfy the requirements you mention is Twino, which is based in Latvia but will now let you have an account in pounds if you don't want to use euros. The auto invest will run without any input from you once it is set up and you could choose one month loans at 10/12% with automatic buyback if they become 30 days late, including interest for the whole period. A few loans are extended for up to 6 months if they pay interest only but these seem to resell quite easily at par if you need to get all the money out. This is one of the very few platforms where you could invest a sizeable amount on day one with good diversification. They now have a lot of company financial details on the site, so you can see what you think about platform risk. I would be interested in hearing more about Twino Although an initial look states interest rates of around 40% with an expected return of 16% - does that mean their expecting over 50% default?
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JamesFrance
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Post by JamesFrance on Sept 8, 2016 6:37:03 GMT
I would be interested in hearing more about Twino Although an initial look states interest rates of around 40% with an expected return of 16% - does that mean their expecting over 50% default? Quite possibly but those rates are for some loans without buy-back and for longer terms, which most of us are not taking on. Their business seems to be profitable unlike Bondora, so the buy-back guarantee and lower investor rates for shorter loans seems good value for investors.
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stevio
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Post by stevio on Sept 8, 2016 7:27:12 GMT
I would be interested in hearing more about Twino Although an initial look states interest rates of around 40% with an expected return of 16% - does that mean their expecting over 50% default? Quite possibly but those rates are for some loans without buy-back and for longer terms, which most of us are not taking on. Their business seems to be profitable unlike Bondora, so the buy-back guarantee and lower investor rates for shorter loans seems good value for investors. Thanks - have the buybacks had to be used yet and have you had any experience of this yourself?
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JamesFrance
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Post by JamesFrance on Sept 8, 2016 7:33:19 GMT
Yes, any loan which becomes 30 days overdue is bought back immediately together with the interest due until the buyback day.
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Post by propman on Sept 8, 2016 8:03:34 GMT
One that would satisfy the requirements you mention is Twino, which is based in Latvia but will now let you have an account in pounds if you don't want to use euros. The auto invest will run without any input from you once it is set up and you could choose one month loans at 10/12% with automatic buyback if they become 30 days late, including interest for the whole period. A few loans are extended for up to 6 months if they pay interest only but these seem to resell quite easily at par if you need to get all the money out. This is one of the very few platforms where you could invest a sizeable amount on day one with good diversification. They now have a lot of company financial details on the site, so you can see what you think about platform risk. I would be interested in hearing more about Twino Although an initial look states interest rates of around 40% with an expected return of 16% - does that mean their expecting over 50% default? Your point still stands, but the default amount will be much lower, losses below contracted return representing 24% (40-16%) of capital per annum. A not insignificant part of this will be loss of interest on failing loan, so the capital loss will be lower than this.
- PM
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elliotn
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Post by elliotn on Sept 12, 2016 10:50:22 GMT
Octopus Choice is c5% spread across portfolio. Hi what company will give me the best interest rate for short notice to my account? I currently have my money in Landbay and I get almost instant access to my money, the rate is about 4% pa, and is protected by their provision fund, Is this the best rate available for a short notice account? I know Assetz capital will give me around 3.75% (instant) and 4.25% (30 day notice) and Ratesetter is around 2.5 to 3.2% (30 day notice) Can landbay be beaten? Thanks |
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