So its been a while since this was discussed and a few things have changed since. Some comments on the 3 platforms I use :
ZOPA. Now fully FCA authorised. And have just launched the IFISA for existing lenders
They are also changing their offering from Access, Classic and Plus to Core and Plus. They will remove the safeguard system.
So all in all its seems they are going riskier for your average P2Per.
I still think rates are a little low considering the risk and lock in period.
Ratesetter, Still waiting on full authorisation. Suspect they are a little behind as they had a more complex model, also they lend to another lender which is a nono going forwards so this has stopped as its being phased out (could take years)
Still planning the IFISA but cant offer withour fund manager status and you cant get that without the full authorisation.
They withdrew the 3 year market so its rolling/1year and 5 year.
Rates have dropped and supply of capital has rocketed, they appear to be failing to grow and funds continue to build.
Its hard to recommend them right now, apart from the rolling is quite good for close to 3% on short term lending, albeit with risk that you COULD get locked in, although this hasn't happened yet and with so much capital on the platform right now its even more unlikely than ever.
Moneything. I started here planning to only invest small amounts but find myself ever increasing my funds, where as I am not willing to put anything else into ZOPA or Ratesetter.
MT is much smaller, but growing. Its a different type of lending, mainly to businesses, and mainly in property development, although there are other items such as fine wine, classic cars, super cars being lent against
Until recently it was hard to get anything other than new loans, as whilst there is a secondary market to buy and sell loans demand much outstripped supply so most things sold in seconds.
This has changed recently with more large loans, and some big loans expected to repay where some people look to pass them on before they actually repay.
They are fully authorised and have just decided to bring the IFISA forward so could be at minimum a month or so away now.
They have to be considered riskier than some platforms but the interest rates (current loans from 10.5-13% to lenders) are so far above both RS and ZOPA that as long as you diversify as much as possible seems a much better return after taking into account risk.
Risk I would say personally is very low on ratesetter, although if a major shock happened that could change quite quickly, risk would be some interest and or capital loss and potentially being tied in till the end.
Zopa I would say is fairly low, although will go up with the withdrawl of safeguard. Risk is mainly capital risk outside the safeguard covered loands. Diversity is the key although your at luck here.
MT is medium-high, but with much higher returns to balance the risk
I ignore platform failure risk in that (none are included in FCS so your money is at risk), although all have to have a contingency should they fail themselves. Someone will step in and pick up the loans that are still being repaid.
