P2P Investing

Uther said:
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...
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Sorry I don't think I was very clear in what I was asking. I understand that you loan out your money at 6.1% but to get that annualised 6.1% the web site says you have to reinvest the monthly repayments at the same rate. If you don't reinvest the repayments at the same rate, it seems to imply to wont get the 6.1%. Is that the case or have I misread it? If that is the case then what is the ROI on your money on 6.1% if you don't reinvest your monthly repayments?

To me, it would seem that the 5 year term investment is a perpetually rolling investment to get that headline rate so it isn't really a 5 year investment at all. As I said I might have misunderstood the blurb but want to clarify it.
 
RS allows you to set the rate you can automatically reinvest in. The only downside is if you set it too high it may never get reinvested. I've initially set it to 6% on 5 year.
 
Uther said:
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.
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I kept an eye on forums when something gets launched it seems some people sell of some loan parts to spread their portfolio.. That is how I got in.. But you need to be super quick. Leaving browser open etc and watching, my 3440x1440 helps with that.

Hoping some more get launched so I can spread it around a little.
 
The_Abyss said:
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.
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You have a link to correct form?
 
Bear said:
Sorry I don't think I was very clear in what I was asking. I understand that you loan out your money at 6.1% but to get that annualised 6.1% the web site says you have to reinvest the monthly repayments at the same rate. If you don't reinvest the repayments at the same rate, it seems to imply to wont get the 6.1%. Is that the case or have I misread it? If that is the case then what is the ROI on your money on 6.1% if you don't reinvest your monthly repayments?

To me, it would seem that the 5 year term investment is a perpetually rolling investment to get that headline rate so it isn't really a 5 year investment at all. As I said I might have misunderstood the blurb but want to clarify it.
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Sorry Bear missed this. Just looked at one of my 5 years, that has £100 in it, and at the end of the 5 year period the interest earned will be £15.79, on a £200 loan interest repaid is £32.17 if that makes things any clearer.
 
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Really interested in this but having to do tax returns will probably end up baffling me.

I have fair bit of money sitting around doing nothing so would like to get some interest going. Innovative Finance ISA seems to be coming though which will be good as you dont have to pay taxes on this right?
 
bingham67 said:
Really interested in this but having to do tax returns will probably end up baffling me.

I have fair bit of money sitting around doing nothing so would like to get some interest going. Innovative Finance ISA seems to be coming though which will be good as you dont have to pay taxes on this right?
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I'm pretty sure you don't need to pax tax (or even declare the income) unless you earn £1000 in interest across everything, i.e Current accounts and Peer to peer, it might be different depending on if you are a higher tax rate.

I have a bunch of investments in grade A+ and A investments on funding circle,with an expected income after fees and bad debt of 7% per year.
 
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RomanNose said:
I'm pretty sure you don't need to pax tax (or even declare the income) unless you earn £1000 in interest across everything, i.e Current accounts and Peer to peer, it might be different depending on if you are a higher tax rate.

I have a bunch of investments in grade A+ and A investments on funding circle,with an expected income after fees and bad debt of 7% per year.
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Aye theres a personal savings allowance which started this year that was announced in the last budget IIRC. Its £1000 for lower rate earners and £500 for higher rate earners, so you can earn the above amounts in interest tax free dependent on your tax bracket.
 
bingham67 said:
Really interested in this but having to do tax returns will probably end up baffling me.

I have fair bit of money sitting around doing nothing so would like to get some interest going. Innovative Finance ISA seems to be coming though which will be good as you dont have to pay taxes on this right?
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ISAs are tax free no matter whats within them (they are just a tax free wrapper)

Interest free savings is £1000 for normal rate tax payers and £500 for higher
I believe its completely eliminated for the top rate band, but you would want to check that

I've been dabbling in ratesetter myself, waiting for the ISA to launch, still no date on this. I am ok on interest till towards end of the year then I may go past the earnings limit and it starts to become taxable so may have to review then.

The interest rates certainly move a lot, certain times of the day and week they fall. You need to hold your nerve and wait till they go back up.
I am just using the rolling market right now so I am not tied once the ISA launches.

For anyone interested in trying ratesetter there are a couple of things that can sweeten the initial start out :
There is a £100 bonus if you invest £1000 for one year (within 30 days of opening your account), so thats a 10% return secured in year 1
Also there is a referral program they run, so if people invest £1000 and you have referred them you get £50.
I suggest anyone thinking of starting gets a referal from someone on these forums using ratesetter and split the £50 (by manually sending £25 from the referrer) and that you invest £1000 to get the £100 bonus.

I still think P2P lending will be a market changer at some point.
 
Bear said:
Aye theres a personal savings allowance which started this year that was announced in the last budget IIRC. Its £1000 for lower rate earners and £500 for higher rate earners, so you can earn the above amounts in interest tax free dependent on your tax bracket.
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What is classed as the higher rate tax bracket?
 
Mercenary Keyboard Warrior said:
ISAs are tax free no matter whats within them (they are just a tax free wrapper)

Interest free savings is £1000 for normal rate tax payers and £500 for higher
I believe its completely eliminated for the top rate band, but you would want to check that

I've been dabbling in ratesetter myself, waiting for the ISA to launch, still no date on this. I am ok on interest till towards end of the year then I may go past the earnings limit and it starts to become taxable so may have to review then.

The interest rates certainly move a lot, certain times of the day and week they fall. You need to hold your nerve and wait till they go back up.
I am just using the rolling market right now so I am not tied once the ISA launches.

For anyone interested in trying ratesetter there are a couple of things that can sweeten the initial start out :
There is a £100 bonus if you invest £1000 for one year (within 30 days of opening your account), so thats a 10% return secured in year 1
Also there is a referral program they run, so if people invest £1000 and you have referred them you get £50.
I suggest anyone thinking of starting gets a referal from someone on these forums using ratesetter and split the £50 (by manually sending £25 from the referrer) and that you invest £1000 to get the £100 bonus.

I still think P2P lending will be a market changer at some point.
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Thanks but I am guessing the ISA rates wont be as good as what currently offered on the standard p2p right?

I was thinking of just putting in £20 in every two weeks try and stay under the £1000 limit to not have to declare would this be good way?
 
Anybody else using property partner.co?

I know it's high risk but the website is very nice and they seem to have thought of most issues.

I already have stocks and shares (funds, etfs, and shares) as well as premium bonds and gold so I figured it was a stepping stone towards eventually having direct property exposure via buy to let.
 
bingham67 said:
Thanks but I am guessing the ISA rates wont be as good as what currently offered on the standard p2p right?

I was thinking of just putting in £20 in every two weeks try and stay under the £1000 limit to not have to declare would this be good way?
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ISA rates suck right now just like every other savings product on the highstreet.

Dont forget its £1000 interest if your a basic rate tax payer so thats quite a lot(about £30k at 3.4% earns you that) so for a higher rate tax payer about £15k gets you to the £500 limit they are allowed

P2P comes with risk, rate setter is probably about 1-2 out of 10 due to the provision fund.
 
That property partner.co seems pretty good how many property have you invested in MaX_PoWah?

Mercenary Keyboard Warrior said:
Dont forget its £1000 interest if your a basic rate tax payer so thats quite a lot(about £30k at 3.4% earns you that) so for a higher rate tax payer about £15k gets you to the £500 limit they are allowed
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I am on basic rate tax in my job so I would get the £1000 limit.

Think i might start soon and slowly build with adding £20 and maybe increase as get more comfortable
 
Didnt see that paying by debit card anything under £1,000 has £1.50 bank charge there goes the interest.

Looks like im going to have to put a fair sum of cash in via bank transfer on Ratesetter
 
bingham67 said:
Didnt see that paying by debit card anything under £1,000 has £1.50 bank charge there goes the interest.

Looks like im going to have to put a fair sum of cash in via bank transfer on Ratesetter
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First 3 deposits, iirc, do not incur the charges no matter the amount
When depositing by card the money is there immediately

If you send via bank transfer and its within working hours it will arrive fairly quickly, about 2-4 hours I think
I sent some money via bank transfer first thing in the morning, when I got to work it wasn't showing, but by lunchtime it was
 
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