Peer to Peer Lending

Lazarus

Lazarus

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We have a decent wodge of dosh Maturing from a 3% Fixed Rate Bond in a few days time.

Current Fixed Deposit terms are desperately poor so we are thinking of trying out P-to-P lending.

As a non-tax payer, Ratesetter are suggesting around 3.2% is possible on short term loans, which is a decent whack at relatively low risk. I do, of course, know the Capital is not Protected.

Any amount of Binging and other research is no substitute for honest feedback from friends, so does anyone here have any real experience in the matter, and what do you think?
 
I have a wedge in Ratesetter, and I can refer a friend, and I get commission for doing so.

And I have used them for over a year now, I went to them as they had the provincial fund, to refund you if the person doesn't pay it back on time. This has happened to me on a few occasions. Retesetter pay up when they say the will.

Taking money out takes about 3 days when you want to draw down.

If you cash out early there is a fee.

And Ratesetter will become an isa this year :-)
 
Interesting!

The ISA aspect, however, isn't particularly relevant in my case as I pay no Tax anyway.

When I first looked at this, Zopa seemed to be the gnat's Boll**ks, but Ratesetter seems to have established itself as the simpler, more reliable system.
 
Ah, yes. Vintage Wodka ........
 
They pay less interest, but pay the 2% in to the fund.

I find them easier to deal with, clear and fair.

And only a few months a go, one of the highest paying interest rate lenders, went bankrupt, and people lost their money.

Rate setter deposits your money into the holding fund (based at Barclays) and then loans from that.
 
Yes, but TrustBuddy wasn't vaguely credible.
 
You've probably read it already but here's Money Saving Expert's review of the P2P situation. http://www.moneysavingexpert.com/savings/peer-to-peer-lending The key things I got out a quick scan are that the money isn't protected and that it's not short term. Also your money might not be lent out straight away and it earns no interest while it sits there.

A similar rate of 3% is available from Santander's 123 current account and it's about as rock solid an institution as you can get. The maximum amount that can be put in the account to accrue interest on is £20,000 but you can double that if you take out a second joint account. There's a £5/month fee to consider and, if you have some direct debit payments that you can switch over you can earn some cashback on selected DD payments. You have to pay £500 per month into the account but this can be "leveraged" by paying that amount in from a different bank account and then back again.

I have a little windfall that has come my way and I'm seriously thinking of opening one of these accounts and then making a merry-go-round using my wife's current account with my, err, current current account to increase our apparent income. It's all perfectly legal.

MSE's thoughts on this here http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#santander
 
Put it into ostrich farming.

Easter is around the corner.
 
Using more then one bank account with several of the nemed banks paying 5% on every day savers but max payment of £400 a month 2 accounts max 1 branch based and 1 internet based.

And P2P can certainly help boost the savings rate, and helping real people. Not the banks!

Ratesetter seems to be the safest p2p provider out there at the moment. (My opinion)

I also use a Tesco bank credit card for of my bills and shopping, I pay the bill in full every month, and pay no interest.

They then give me double club card points, and as I shop in Tesco I get more money back in my pocket :-)
 
Chris1979 said:
I also use a Tesco bank credit card for of my bills and shopping, I pay the bill in full every month, and pay no interest.
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I have recently started with a new credit card from Aqua. This pays 0.5% cashback on all purchases including those abroad. This supplements my Nationwide credit card which also pays 0.5% cashback but only on UK purchases.

I also pay off in full every month. The Nationwide has a DD set up for this. The Aqua is so new I haven't yet paid off the first bill but I'll put this on DD as soon as possible.
 
Thanks for the overnight comments and suggestions - and thanks for the link by PM, Chris.

Yes, got all the Bank Account and other bits and bobs arranged to suit, so Peer to Peer is the only new area in which to consider dabbling. I tried my hand on the Stock Market for a few years and just about broke even after a lot of stress. That attitude to risk is an issue in balancing my current decision between Peer to Peer and miserable Bond returns. Too boot, we no longer wish to tie money up for long periods, which mitigates against Bonds.

Ratesetter does offer short-term Investment, has easy access to ones Funds and has the Protection feature (As do the other big players, in one form or another). They've also got an offer on at the moment of £100 Bonus for new Accounts where a minimum of £1000 is left Invested for a year.

I'd be interested in any more comments from people who use Ratesetter. Oddly enough, their Monthly lending rates marginally exceed 1 Year rates right now.
 
With Gvt Bonds you occasionally get a cheque from them for random amounts as part of their monthly "lottery" thing. The more cash you put in, the more chances of "winning".

Have you considered investing in a buy to let property? It comes with its own risks and stresses (and is why I am not doing it any more) but you do get a steady monthly income with better yields than any banks accounts.
 
We are at the stage where tying up money for long periods is not viable, so property is off the agenda. And the spare wodge of wedge is £50k, which won't go far in the world of bricks and mortar even up here in Land of Whippets!

Ratesetter has an Access profile which is almost akin to Instant Access Savings, and given we get %1.65 on our existing Instant Access Building Society Account, the prospect of %3.2 rather appeals - especially given the £100 bonus currently on offer.
 
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Reader, I married one.
 
We've had a go at Wellesley, 5.5% monthly over 5 years, they do a 30 day peer to peer at 3.3% and is paid gross.

P2P Lending Rates For Wellesley & Co

They claim to have a 100% record and no investor has ever lost any money with them.
 
Interesting. Not heard of them, but will add to the research list.
 
PaulR said:
I have recently started with a new credit card from Aqua. The Aqua is so new I haven't yet paid off the first bill but I'll put this on DD as soon as possible.
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Sorry to ask, aqua keep sending me forms saying I am pre selected for a card. Then I read the small print and they charge between 40 to 60% Apr, want a 5% minimum payment and some cards also have a statement fee.

I thought they were a high risk lender like provident or vanquis. (Not trying to cause offence to any one)
 
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