Knowledge Base

Investing in p2p loans? Yay or Nay?

Started by: joshythehipster
On: 09/01/2019 | 22:40
Replies: 8

by: joshythehipster
on: 09/01/2019 | 22:40

Hey guys! Smiley Very Happy


Whilst I know all investments serve risks (high and low) and the higher the risk, the more projected gross profit you'll get (if s**t doesn't hit the fan).


After changing the gym from my current 3 year est. to pure gym and saved £290 a year, and made MANY changes and currently saving £1,000 a year (shocking i know). With that in mind, I know that money makes money and I looked into p2p loans which from projecting from 7% per annum and others projecting up to 16%, dependent on how quickly your chosen client pays back their loan.


Most don't offer the fscs protection plan, but have their own buffer zones and protection for your money, so you don't entirely lose out. Balances it out slightly in my mind, but still slight uncertainty. 


Does anyone here have experience investing in them, and will they work for you in the long run (if played right)?



Live life to the full and be awesome Smiley Happy
Message 1 of 9
by: endorphin
on: 10/01/2019 | 11:32

Hi @joshythehipster I'm not sure where you seeing 7%-16% pa but they sound like high risk loans.


I'm dabbling with Ratesetter at the moment and their 1 year rate hovers between 3-5%. They don't offer FSCS protection either but they seem to have a good rep so I feel my money is fairly safe with them as part of my limited portolio. Having said that I won't invest more than I can writeoff comfortably.


Finally Ratesetter are currently offering a £100 bonus if you invest £1k+ for 365 days (so that's at least a 10% rate for 1 year)

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Message 2 of 9
by: rickvigorous
on: 10/01/2019 | 14:25
@joshythehipster i hated Bondora, but Ratesetter has been great for me: nice yields, quick withdrawal from rolling market.
Message 3 of 9
by: endorphin
on: 11/01/2019 | 10:44

@rickvigorous wrote:

 but Ratesetter has been great for me: nice yields, quick withdrawal from rolling market.

Do you only invest in the Rolling Market then?


Have you heard about the forthcoming change in Feb which appears to only pay out on the Rolling Market at the end of the loans' terms?!

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Message 4 of 9
by: pinkcalculator
on: 11/01/2019 | 17:50
Yes Ratesetter is good though the new changes are going to limit how much I do with them as I like to have control of my rolling market. I’ve put in an official complaint saying that ad a customer I should have a choice if I want my rolling to be monthly paid or full term ( which can be 4 years I’ve noticed ) presently
after 20th feb any new doling will be put into whatever without you being advised until it’s committed. Some might go to the rolling monthly some to this term thing. It’s fine if you dump it in and don’t really care but if your on the ball and want to squeeze out the best from rolling then it’s going to affect you, as if you withdraw they don’t withdraw from certain funds so again no way to control them not taking your best returns and the monthly ones and then you can’t re invest for 14 days either.
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Message 5 of 9
by: giammy85
on: 13/01/2019 | 19:38
oh thanks, I didn't know about this offer. I will try
Message 6 of 9
by: rickvigorous
on: 14/01/2019 | 08:03
I had some in the 1 year market for the offer, now I just use the rolling market for money that doesn't fit in my current accounts (Tesco, tsb).
Message 7 of 9
by: shahzadh
on: 15/01/2019 | 03:36
Im thinking of doing the Ratesetter but I only see value in doing the 5 year one as my current accounts offer better interest at 5% (tsb, Nationwide etc)

Its a bit risky tbh. Anyone else has had positive or negative experiences?
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Message 8 of 9
by: pinkcalculator
on: 15/01/2019 | 06:32
I’d only put in money to the 1 and rolling accounts as with kids I never know when we might need money so I don’t tie it up. The nationwide 5 % only lasts a year for the current account so maybe wait for that to run.
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Message 9 of 9