£1m ISA tranche oversubscribed

Right... We're back open again for new ISA applications. We're capping the latest tranche at £5m, which we expect to be filled within the week.

We've obviously been preparing for a large inflow of new lending capital for some time, so have some new affiliate relationships going live (some of which are already live) which will improve the current level of origination. It's been steadily increasing over the last few months and should be £3-4m p/m through Feb and March, compared with around £1.5-2m previously. In addition, our lending throughout this busy period is almost exclusively being retail funded i.e. not institutional, whereas in the past it's been 33% or so institutional.

We're still anticipating some cash drag though, unfortunately, related to getting initial large lump sums lent out, but reinvestments continue to be matched same or next day.

Don't worry too much about the stated matching time - it's based on a rolling 30-day average which doesn't take into account the impact of allocating more loans to consumers, or the full impact of the uptick in loan origination over the last week or so. I'd guess new funds shouldn't take more than 10-14 days to match in the 3-year market, slightly less in the 5-year market.

Thanks

Hi closetotheedge - it certainly shows no signs of letting up. The last few days have been very busy indeed, particularly in relation to ISA transfers mainly from existing cash ISA providers. These seem to be averaging £10-30k, sometimes much more, which is obviously pretty lumpy when received in the space of a few days. The 5-year market is holding out pretty well - the queue is just over a week but is stable. The 3-year market is longer - the estimate on the website says over 3-weeks for new money; it's actually likely to be more like 14 days but worth bearing this in mind.

So, provided you don't mind a bit of a wait to deploy a large initial sum, you certainly haven't missed the boat. However if you are looking to get your money on loan within a day or so, you might have no other option than www.ebay.co.uk

Your mind is sound old bean, based on current rates of course. Rates are subject to weekly changes though, up and down, so the two rates may converge over time (projected rates assume repayments are reinvested at the same rates). However, you are still far more likely to earn a higher return overall in the 5 year market even with exit fees. One obvious caveat would be liquidity, or rather the risk of a lack thereof. You should always be prepared to hold your loans to maturity, in the worst case.

No dashboards are live, although MT/Coll do a pretty good manual imitation! AC afaik is the only p2p with automated api and I believe that runs hourly.

Thanks for taking the time to answer my query Matthew, especially as it's the weekend. I'll check my dashboard again on Monday.