P2P Investing

Englander91 · 18 Oct 2016 at 11:13

Diddums said:
Is it worth chucking £100 in here just to see how it goes? Can I even deposit that little? How often do I have to babysit this? Can I fire and forget or do I have to reinvest once the loan term's complete? Sorry for the noob questions, just wondering if I should look in to this or not.

So the smallest scale to make it worthwhile is £1000 invested for one year. Using a referral code (which I can give you if you decide it's for you), you get £100 bonus at the end of that 1 year, so long as you've kept £1000 in there. So, straight up, that's 10%. Rolling market ("easy access") is currently just below 3%, so add that on as well.

Sticking with the rolling market, you receive repayments on your investment ~monthly, and the default is to auto-reinvest this money back into the rolling market at the prevailing rate. Or, you can take things into your own hands and tinker with the rates you want to lend at, but it will take longer to match it. It makes a bit more sense in practice. So it can be as involving as you like.

I think it makes sense to do it for a year to get the £100 bonus, then see if the rates are worth it in a years time to carry on.

Diddums · 18 Oct 2016 at 11:53

Ok cool, thanks. I'll be sure to drop you a line when I'm ready to pull the trigger.

Glaucus · 18 Oct 2016 at 16:25

how does this all work,

say I put a 1000 in on ratesetter 5years at 5.1%

what do I get back a month and what's the total profit, I assume you get a repayment back every month?

is it as easy as dividing the 1000 by the number of months(60 in this case) then adding 5.1% on to that amount, or what?

Jokester · 18 Oct 2016 at 16:45

Glaucus said:
how does this all work,

say I put a 1000 in on ratesetter 5years at 5.1%

what do I get back a month and what's the total profit, I assume you get a repayment back every month?

is it as easy as dividing the 1000 by the number of months(60 in this case) then adding 5.1% on to that amount, or what?

I think it's a bit more complicated than that. You get a portion of your initial investment + interest paid back every month. Over the 5 year term of the loan, the AER is equivalent to 5.1%, so I think you'll get more at the start than you do at the end.

Mercenary Keyboard Warrior · 18 Oct 2016 at 22:26

Yeah, £1000 at 6% will get you £19.27 per month for 60 months give or take a few pence

Over time the capital repayment goes up and the interest goes down but the payment remains the same.

So the £1000 will be paid back and £156.04 in interest. First payment would be £13.98 capital and £5.29 interest, last is £19.02 capital and £0.09 interest, its slightly lower to repay the correct amount. So 59x £19.27 + £19.11

caz32 · 2 Nov 2016 at 18:03

Can someone send me a referal to ratesetter?

Englander91 · 2 Nov 2016 at 18:05

caz32 said:
Can someone send me a referal to ratesetter?

I trusted you

Kreeeee · 2 Nov 2016 at 18:06

Englander91 · 2 Nov 2016 at 18:06

Kreeeee said:
PM sent.

Oi I was first!

caz32 · 2 Nov 2016 at 18:49

Signed up using 'Michaels' referral as it came through first

. Not sure where to start now though.

It seems anything less then 1 grand into 1 yr / 5 yr market is pointless

Englander91 · 2 Nov 2016 at 19:01

caz32 said:
Signed up using 'Michaels' referral as it came through first . Not sure where to start now though.

It seems anything less then 1 grand into 1 yr / 5 yr market is pointless

It depends how accessible you want your money to be. You can wait a few days before committing to an interest rate. A couple of days ago I matched some money at 3% on the rolling market which I thought was decent enough, for example.

I initially wanted the 1year market, but the interest rates have been so close to the rolling market that I just stuck with that for ease of access.

Also note that to get the £100 bonus, you need to keep a minimum of £1000 invested.

caz32 · 2 Nov 2016 at 19:21

Englander91 said:
It depends how accessible you want your money to be. You can wait a few days before committing to an interest rate. A couple of days ago I matched some money at 3% on the rolling market which I thought was decent enough, for example.

I initially wanted the 1year market, but the interest rates have been so close to the rolling market that I just stuck with that for ease of access.

Also note that to get the £100 bonus, you need to keep a minimum of £1000 invested.

OK, Cheers. I want to do the rolling market just to test it, how often does that rate change then, daily?

Englander91 · 2 Nov 2016 at 20:27

caz32 said:
OK, Cheers. I want to do the rolling market just to test it, how often does that rate change then, daily?

More like hourly. You're best off depositing money into your ratesetter account, and it will go into a holding wallet. Then, choose to invest in the rolling market, but select the advacned options (I think it's the button saying that you are a Ratesetter expert) and that lets you choose a rate you are happy with. I aim for a couple of tenths of percent above the market rate, and it should match pretty quickly.

It's worth having a look at the stats for historical rates which are found under one of the submenus.

Englander91 · 3 Nov 2016 at 08:48

So i can see that it's been hovering around 2.8-2.9% on the rolling market over the last day or so. As an example, I would set my money up to lend on the market, and set my rate at 2.9% just to get it going and earning some interest. Then on the reinvestment settings, I would, and have, set it to auto-reinvest at a rate of 3.0% (checking that 3.0% is a reasonable expectation when the time actually comes to re-invest.

MaX_PoWah · 3 Nov 2016 at 09:18

No new property on pp this week. They have had a good run to be fair though and the scale backs have been hovering around 80-90% so they probably thought it's time for a break..

I've been investing in property moose and got my first dividends from there the other day. There were loads of big discounts on there when they first launched the secondary market but seems to be calming down now.

Jokester · 3 Nov 2016 at 17:53

What % returns were you getting there?

I've started putting money into Funding Circle in the riskier loans. If I can get the 8-9% average return I'll be happy.

Glaucus · 3 Nov 2016 at 17:59

MaX_PoWah said:
I've been investing in property moose and got my first dividends from there the other day. There were loads of big discounts on there when they first launched the secondary market but seems to be calming down now.

how am I just hearing about this now. imagine the returns from several years ago trouble is now with brexit looming, house prices may crash. Although it doesn't appear to have been going that long.

MaX_PoWah · 3 Nov 2016 at 19:55

Well the return depends on which properties you buy.. lots on PP are quality properties but lower yields where as on PM they are not as good a properties but the yield is higher. I've been buying the shirebrook properties, worksop and derby on property moose.

It is worth considering your investment horizon with these property shares. Anything less than 5+ years and you need to be careful. I can see me having these for at least 5 years so I am not concerned about brexit.

Funding circle is good. Had a few loans pay off early as well. There is far more money on funding circle than there are quality investments though... some of the loan requests on there are abysmal.. i think this is better for short term investment though as you can put your shares up for sale at 0% discount and the auto bid system will Hoover them up in minutes.

I wouldnt use any of these platforms for the majority of your money though. Invest in the quarterly dividend payers on the ftse 100 first

Mercenary Keyboard Warrior · 16 Nov 2016 at 12:29

Zopa announcing plans to open a next generation bank

Quite interesting, bet the big banks will be fighting this very hard via the regulator if they can see a way

englishpremier · 17 Nov 2016 at 14:40

Mercenary Keyboard Warrior said:
Zopa announcing plans to open a next generation bank

Quite interesting, bet the big banks will be fighting this very hard via the regulator if they can see a way

The banks are going to be facing much more competition soon. I've been told by a card provider that I work with that they that been petitioning BoE and are applying to be a 'clearing' bank themselves. Currently there are 12 in the UK, and all other banks or similar providers are forced to go through these. Once the market opens up, they'll be a lot more competition, and hopefully better deals for the end consumer.