cerbera
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| posted on 17/1/14 at 01:50 PM |
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Peer to Peer Lending
Has anyone have any experiances of peer to peer lending? I'm looking at investing a little into either Zopa or Ratesetter and I am interested in
the views of the collective to see what you think or of any experiances you have.
I know they are not backed by the government like banks are, but both these companies have a ring fenced fund that is used to pay back the lender if
the borrowers default.
Ta in advance.
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jossey
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| posted on 17/1/14 at 02:33 PM |
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crowd lending as it is known in the industry pays an ok interest rate and a few years ago would be worth the investment if you accept the risk but at
the moment you can lock you cash into better interest using places like the post office etc and there is very little risk (Note the post office is not
covered by the 75k protection scheme like other "banks" are. So be casreful.
Also take into account you should pay tax on the money you make from them so you may lose upto 40% depending on your taxpayer rate.
I had a look into it and decided to get 5% on a fixed rate deal. Seemed safer and I don't have to worry that new legislation comes in and stops
this type of lending... It will be regulated from April so things are about to change.
That's my 2peneth Worth....
Thanks
David Johnson
Building my tiger avon slowly but surely.
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bobinspain
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| posted on 17/1/14 at 02:42 PM |
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quote:
Originally posted by jossey
crowd lending as it is known in the industry pays an ok interest rate and a few years ago would be worth the investment if you accept the risk but at
the moment you can lock you cash into better interest using places like the post office etc and there is very little risk (Note the post office is not
covered by the 75k protection scheme like other "banks" are. So be casreful.
Also take into account you should pay tax on the money you make from them so you may lose upto 40% depending on your taxpayer rate.
I had a look into it and decided to get 5% on a fixed rate deal. Seemed safer and I don't have to worry that new legislation comes in and stops
this type of lending... It will be regulated from April so things are about to change.
That's my 2peneth Worth....
Who's offering 5% fixed?
I assume the capital's guaranteed?
That's an incredible offer with base rate where it is !!!
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Not Anumber
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| posted on 17/1/14 at 03:49 PM |
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Money invested with a Credit Union will actually provde social benefit as well as a return on investment.
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jacko
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| posted on 17/1/14 at 05:16 PM |
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quote:
Originally posted by bobinspain
quote:
Originally posted by jossey
crowd lending as it is known in the industry pays an ok interest rate and a few years ago would be worth the investment if you accept the risk but at
the moment you can lock you cash into better interest using places like the post office etc and there is very little risk (Note the post office is not
covered by the 75k protection scheme like other "banks" are. So be casreful.
Also take into account you should pay tax on the money you make from them so you may lose upto 40% depending on your taxpayer rate.
I had a look into it and decided to get 5% on a fixed rate deal. Seemed safer and I don't have to worry that new legislation comes in and stops
this type of lending... It will be regulated from April so things are about to change.
That's my 2peneth Worth....
Who's offering 5% fixed?
I assume the capital's guaranteed?
That's an incredible offer with base rate where it is !!!
As Bob is asking who are you getting this deal with as my ISA's are about to come up for renewal
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joneh
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| posted on 17/1/14 at 05:52 PM |
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Buy Lloyd's shares instead - once the government sell their remaining share they'll be £1.30 within a year...
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bobinspain
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| posted on 17/1/14 at 06:20 PM |
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quote:
Originally posted by joneh
Buy Lloyd's shares instead - once the government sell their remaining share they'll be £1.30 within a year...
A word of caution. Read 'The Motley Fool' a fool's guide to investing in banks. In essence, they say there's far better
prospects elsewhere, even within the banking sector (if that's what floats your boat).
I acquired 100 shares in Whitbread 5 yrs ago at 8 quid a share!! Wish I'd've bought a shedload. They are pence away from 40 quid a pop
now!
If you remember three basic tenets of life, make it these: (and you won't be disappointed). Dogs bark, babies cry and the stock market moves up
and down. 
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smart51
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| posted on 17/1/14 at 08:06 PM |
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I have an account with fundingcircle. It is a peer to business lending site. You lend small sums (multiples of £20) to a number of different
companies to spread the risk. The companies borrow large sums (100k is typical) from hundreds of small lenders, all administered online by funding
circle.
Funding Circle vet the companies before hand and grade them from A+ to C-, with anticipated default rates to match. You bid a sum of money and an
interest rate and the cheapest bids that make up the 100k loan are accepted. Funding Circle take 1% of the profits out of the repayments, not taking
any money upfront.
I'm lending to about 20 companies so far, with a gross yield of over 10% per year. Taking account of the expected default rate and the 1%
charge, I should be left with a net return of 6.4%, less income tax of course. It's better than you get from a bank or an ISA. Ideally, you
want to lend to 100 or more companies, so should one of them default, it only hits your return by 1%. I'm bulding it up slowly as I'm
only picking the best offers.
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steve m
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| posted on 17/1/14 at 08:44 PM |
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I am not really in a position to answer, as to me its pretty well gambling, and as I was well done, a few years ago, to about 150k
in what was really a mortgage scam, but us being the innocent party, but I still have to pay the debt, ( nearly gone now)
but my father who was an accountant, but now retired and invests about 1 mill, into what ever, has always said, that if you invest, or try to
increase your money, you have to be prepared to lose, and sometimes it will be a big lose, especially if your greedy, back in the 80's he lost
500k in one day, on a black Monday type of day
Hence my reluctance to put any money into any "scheme"
as I said, just my point of view
Steve
Thats was probably spelt wrong, or had some grammer, that the "grammer police have to have a moan at
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jossey
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| posted on 18/1/14 at 02:19 PM |
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it was a deal last year with the post office at 5% at the time. thats AER though.
also have my normal cash in a santander current account which offers 3.25 % fixed on savings. which is good. I set all my DD's to the last day
of the month which gave me an extra £100 a year in interest.
Keep an eye out for post office offers.
as others have mentioned there is small social benefit to some of the schemes but not many. Sub prime lending leads people into more debt normally and
same as pay day loans it only really helps less than 5% of people using the service.
Why not mine Litecoins or something risky like that....
Thanks
David
Thanks
David Johnson
Building my tiger avon slowly but surely.
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