P2P Investing

ivrytwr3 · 6 Jan 2016 at 19:27

Your Regular Lender instruction
I have chosen to lend £20.00
to be collected on the 1st
placed in the Monthly
at Market Rate
The last collection was on No collections taken yet
The next collection will be on Monday 1st February 2016
Direct Debit Guarantee Direct Debit Guarantee

Is this set up correctly?! I am looking at investing £20 per month into p2p. Happy to invest it for up to 5yrs.

I don't really understand it, but am happy for £20 per month gamble.

Are we allowed referral links? So i have snipped it - why quote it it? lol!!

DIABLO · 6 Jan 2016 at 19:51

ivrytwr3 said:
Is this set up correctly?! I am looking at investing £20 per month into p2p. Happy to invest it for up to 5yrs.

I don't really understand it, but am happy for £20 per month gamble.

ALso noticed this:

Refer a friend and you'll both get £50 when they invest £1,000 or more
Just get them to register using your personal link below

http://link.ratesetter.com/vq1ttpt

Are we allowed referral links?

No we're not, someone will report it and it will get deleted by a mod.

chanjy · 7 Jan 2016 at 11:33

Anyone got links to other sites/forums where they discuss this in more detail if I want to find out more?

Uther · 7 Jan 2016 at 22:43

chanjy said:
Anyone got links to other sites/forums where they discuss this in more detail if I want to find out more?

'p2p independent forum' is quite interesting.

ivrytwr3 · 8 Jan 2016 at 16:07

As above i have set up as a direct debit as a 'regular lender' - £20 each month.

Is this all i need to do now? ie the money is now been used for p2p?

Vanquish-Storm · 8 Jan 2016 at 16:19

How do people get on doing their self assessment?

Uther · 9 Jan 2016 at 11:30

The rates can be a bit weird on RS, yesterday I saw 1 year rates at below the monthly rates, and today monthly rates are under 3%!
Surely once the rates dip below 3% you would be better off having the money in the bank with zero risk?

snappyfish · 9 Jan 2016 at 11:42

Vanquish-Storm said:
How do people get on doing their self assessment?

Looking into that at the moment.

The_Abyss · 9 Jan 2016 at 11:52

Vanquish-Storm said:
How do people get on doing their self assessment?

You complete the section marked Interest and Dividends as you would with any other savings interest. The current P2P consultation, just closed, suggests that returns will start to become taxed at source just the same as cash savings in the future.

Uther · 9 Jan 2016 at 12:15

The_Abyss said:
The current P2P consultation, just closed, suggests that returns will start to become taxed at source just the same as cash savings in the future.

Bet that will be painful for some people...

FortuitousFluke · 9 Jan 2016 at 12:23

Uther said:
Bet that will be painful for some people...

I'd much prefer this tbh, I don't have a great deal of additional income to declare so any that can be taken out of my hands is a bonus.

The_Abyss · 9 Jan 2016 at 12:39

Uther said:
Bet that will be painful for some people...

I imagine that very few people have declared their P2P income to date...

Vanquish-Storm · 9 Jan 2016 at 12:49

Uther said:
The rates can be a bit weird on RS, yesterday I saw 1 year rates at below the monthly rates, and today monthly rates are under 3%!
Surely once the rates dip below 3% you would be better off having the money in the bank with zero risk?

I had some funds to stick under monthly - keeping hold until it goes back up to 3.4% +

Uther · 9 Jan 2016 at 16:13

Vanquish-Storm said:
I had some funds to stick under monthly - keeping hold until it goes back up to 3.4% +

Yeah I stuck some more in the 5 year at 6.1%, will hold off on monthly until it's at least 3.4. Monthly is currently sitting at 2.7%...
Is anyone doing Saving stream? Looks quite interesting, and some good returns.

Bear · 9 Jan 2016 at 17:39

Uther said:
Yeah I stuck some more in the 5 year at 6.1%, will hold off on monthly until it's at least 3.4. Monthly is currently sitting at 2.7%...
Is anyone doing Saving stream? Looks quite interesting, and some good returns.

I registered on saving stream but there doesn't seem to be any live projects to invest in. It looks on the face of it, unless you sit on the site waiting to pull the trigger, most the investments get fulfilled so you barely get a chance.

You can of course choose to pre fund a project but you don't know if it will get cleared for funding or when, so you don't start earning until it gets clearance.

Uther · 9 Jan 2016 at 18:00

Bear said:
I registered on saving stream but there doesn't seem to be any live projects to invest in. It looks on the face of it, unless you sit on the site waiting to pull the trigger, most the investments get fulfilled so you barely get a chance.

You can of course choose to pre fund a project but you don't know if it will get cleared for funding or when, so you don't start earning until it gets clearance.

Yes noticed that. I assume the money isn't taken until the project takes off? Looking at the p2p forum they talk of 'bots' on SS, and it's not always easy to get in before loans are fulfilled. Might be worth a punt though.

Pho · 9 Jan 2016 at 18:39

Having a look at the monthly RateSetter product it states "At the end of the term, automatically reinvest or withdraw as much as you like".

Does this effectively mean that if I put £x in there I could fully withdraw £x + £interest after a month if I needed it back?

Whilst the interest rates of the five year terms etc are tempting I don't like tieing money up for long "just in case".

Uther · 9 Jan 2016 at 18:52

Pho said:
Having a look at the monthly RateSetter product it states "At the end of the term, automatically reinvest or withdraw as much as you like".

Does this effectively mean that if I put £x in there I could fully withdraw £x + £interest after a month if I needed it back?

Whilst the interest rates of the five year terms etc are tempting I don't like tieing money up for long "just in case".

Yes, if you put it in the monthly market it's all paid back within the month, and if you choose not to reinvest then you can withdraw both the capital and the interest.(unless it all goes horribly, horribly wrong, but that's never happened yet)
In the longer term loans, a proportion of the capital plus interest in repaid every month, and you can withdraw/reinvest as you want. I haven't set it to reinvest at market rate, I would do it manually.

Bear · 9 Jan 2016 at 19:33

Uther said:
Yes, if you put it in the monthly market it's all paid back within the month, and if you choose not to reinvest then you can withdraw both the capital and the interest.(unless it all goes horribly, horribly wrong, but that's never happened yet)
In the longer term loans, a proportion of the capital plus interest in repaid every month, and you can withdraw/reinvest as you want. I haven't set it to reinvest at market rate, I would do it manually.

Just reading the blurb on RS and I understand that on the monthly loans, you have to reinvest at the end of the month (x12) when you get the loan paid back in full (capital plus interest) so you get the 2.6% annualised return.

On the 5 year loans, you get a capital plus interest payment back every month as you say, but to get the 5.9% you have to reinvest the repayments. I take it you have to reinvest it into another 5 year loan to get the 5.9% year on year return? So in reality, it's a permanently rolling loan to get that 5.9% per year?

Uther · 9 Jan 2016 at 19:50

For the one month it says: ''Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan.''

I invested a small amount (£20

)in monthly, to test the water, and in one months time I will get the capital plus interest (6 pence so 1/12th) repaid to my holding account. That was at 3.5%
My 5 year loans are at rates between 5.9 and 6.1, and are repaid including interest in the 5 years or sooner.
I wouldn't set them to reinvest at 'market rate' as some people found their money being automatically reinvested at 1.8% or something silly like that!
The rates seem to jump up and down all the time, so whereas I got 3.5% earlier this week on the monthly, if I invested now I would get 2.6...