P2P Investing
- Thread starter snappyfish
- Start date
Depends if you just have one investment or lots spread out.
Funding Circle was always set up on the basis that you would lose 2% of your return due to defualts.
Which is fine if you are getting 10%+ on your investments and have lots of them. You can afford one or more to go belly up.
Soldato
Better than leaving it in a high street bank that's for sure!
I only started on the P2P bandwagon this year, with a modest sum split between RateSetter, Saving Stream and Zopa. I'd be happy with 3/4% returns over a prolonged period so the current 5/6% is making me happy. If I had the minerals I'd probably invest considerably more but let's start slow as they say.
Associate
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- 25 Sep 2016
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- 174
This is interesting - the interest numbers being waved around are somewhat better than the 0.95% my cash ISA just went down to.
Just to clarify, as I would be playing with quantities of money far below the personal savings allowance, I don't need to worry about tax do I?
I'm deciding between Zopa Classic (4.1%) and Ratesetter 1 yr (3.8%). I'm leaning towards Zopa for the higher interest, butMercenary KB Warrior seems to favour Ratesetter due to the increased 'flexibility'?
Just to clarify, as I would be playing with quantities of money far below the personal savings allowance, I don't need to worry about tax do I?
I'm deciding between Zopa Classic (4.1%) and Ratesetter 1 yr (3.8%). I'm leaning towards Zopa for the higher interest, butMercenary KB Warrior seems to favour Ratesetter due to the increased 'flexibility'?
Aye, no tax if <£1k (or £500 if higher rate).
How much flexibility to do you need? Why not both? Take advantage of the welcome/referral bonuses for each.
Associate
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- 25 Sep 2016
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I would love to take advantage of referral/welcome bonuses - I just can't see them advertised on each site !
My bad, RS were doing a particularly generous £100 welcome bonus but appears it ended last week
If someone refers you to Zopa and you lend £2k both parties get £50 - https://www.zopa.com/promo/member-referral-april-2016. I believe it would be against the forum rules here to do so but if you google I'm sure there are plenty referral links out there.
Associate
- Joined
- 25 Sep 2016
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- 174
My bad, RS were doing a particularly generous £100 welcome bonus but appears it ended last week
If someone refers you to Zopa and you lend £2k both parties get £50 - https://www.zopa.com/promo/member-referral-april-2016. I believe it would be against the forum rules here to do so but if you google I'm sure there are plenty referral links out there.
D'oh! That would really have swayed me :/
RE trust messages - I've just set up my Trust, but I don't see any message nor do I know how it works.
Someone seemingly trusted me although I already have a RS account, but taking a closer look it appears the £100 is still available if you're referred as mentioned here - http://www.p2pfinancenews.co.uk/2016/10/05/ratesetter-cash-incentive/
and from the T&Cs
"4. Your friend can request to withdraw their money at any time, but must keep a minimum of £1,000 invested for 1 year to qualify for their £100 bonus. This will be deposited into the Rolling Market at the Market Rate within 1 week of qualifying."
Associate
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- 25 Sep 2016
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Double d'oh, I signed up in haste without the proper link >.<
I've sent them a message to see if it can be undone so that I can resubscribe the correct way (getting the bonus). I haven't put any money or anything into the account yet.
I've sent them a message to see if it can be undone so that I can resubscribe the correct way (getting the bonus). I haven't put any money or anything into the account yet.
Soldato
I didn't have a terribly good experience with Zopa hence why I am less supportive of their model, however if you want a simpler click and leave type system theirs is probably better.
I got a noticeably lower rate on my investment than they indicate is "typical". Whilst I didn't put in as much as they suggest (they say £1000 I sent £200) to me it indicated an issue with how they allocate the funds. If you place lareg amounts I am sure you would get closer to what they suggest.
It also took quite some time to lend the funds. Just didn't feel great to me, its a personal thing.
So based on this I prefer the RS model where I can choose the rate I lend at, and don't have to cross my fingers that I get some decent rate loans on 5 year lending.
Associate
- Joined
- 25 Sep 2016
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- 174
I might even ring them up in the morning apologetically to see if I can still be eligible for the bonus via a referral link - I am still a new customer!
I'm pretty swayed by starting, at least, with Ratesetter, I like the look of their platform. I'm just trying to get my head around how the 5 year market works.
Say, I put in £1000. It says capital and interest are repaid ~monthly. So does that mean, if it weren't automatically reinvested, it would take 60 monthly instalments to get the money back, plus interest?
As I understand it, the default is to reinvest capital + interest straight away, but I read that there is an option to skim the interest only off to provide an 'income'.
With respect to the rolling market, is the term just however long you want to leave it in there until you decide to withdraw it (with no penalties) and then you get a lump of capital plus interest?
I'm pretty swayed by starting, at least, with Ratesetter, I like the look of their platform. I'm just trying to get my head around how the 5 year market works.
Say, I put in £1000. It says capital and interest are repaid ~monthly. So does that mean, if it weren't automatically reinvested, it would take 60 monthly instalments to get the money back, plus interest?
As I understand it, the default is to reinvest capital + interest straight away, but I read that there is an option to skim the interest only off to provide an 'income'.
With respect to the rolling market, is the term just however long you want to leave it in there until you decide to withdraw it (with no penalties) and then you get a lump of capital plus interest?
Rolling market money is tied in for a month. The money will be reinvested every month you just need to change your investment settings to holding account to get money out
With the 5 year by default it will reinvest all the money from repayments in to the 5 year market you can change this to different markets and reinvest capital only if you wanted
With the 5 year by default it will reinvest all the money from repayments in to the 5 year market you can change this to different markets and reinvest capital only if you wanted
Spread between around 600 investments at the moment. Averaging 10.2% with 8.2% after bad debts.
Soldato
On the left side, under the Instructions are the reinvestment settings.
For each market individually, you can set where the reinvestment goes (rolling/1year/5year/holding). And whether that it capital repayments only, or the whole sum paid (ie inc interest), then whether you use the market rate or a rate you specifiy.
5 year is a repayment sum. So £1000 would mean you would have about £19 repaid monthly for 60 months with interest in the 5.5-6% kind of range.
Rolling is for upto 30 days (sometimes you will get shorter periods) and whether it reinvests or not is down to your reinvestment settings.
Something to watch is that the markets do fluctuate a lot. So dont rush to get money lent out, but equally dont set silly expectations compared to the market place. If very big loans are repaid as sometimes happens there can be a lot of liquidity which will tank rates for a few days or more.
There are graphs on the site going back to day 1 for the markets, just skimming through them will give you an idea of the volatility.
There seems to be even more money looking to be lent since the base rate drop, although lending last month was significantly up, so looks like the p2p lenders are continuing to find new areas of business and expanding their footprint on the loan market.