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Thursday, 24 December 2015

My UK Peer to Peer Lending Journey so far..

It’s Christmas Eve so I thought I’d do a quick update on which platforms my Peer to Peer Lending money currently resides.

Platform Pie Chart Based on Investment

About a year ago, over 50% of my money was in the Ratesetter 5 year market.  I’m now pulling my money out as quickly as I can simply because the interest is relatively low (around 6%).  Unfortunately, Ratesetter have penalties for early withdrawal and no secondary market.

The Funding Circle (FC) proportion has also reduced because they have switched to fixed interest rates so you can no longer bid for a variable rate.  Generally the return on Funding Circle is now around 7% to 8%.  Another disadvantage of FC is that loans are unsecured and any defaults lower the actual return.

So which platforms have I increased my proportional share?  Well, there are three platforms that I now favour and they are all asset-based.  These are Money Thing, Funding Secure and Saving Stream.  Asset-based means the loan is secured against the asset.  The usual asset is property or land but can also be works of art, jewellery, super cars, boats, industrial machinery and shipping containers.

Saving Stream

Saving Stream is currently my number 1 choice with great track record (no losses so far) and typically one year loans at an interest of 12% with zero fees.

Saving Stream are continually refine their offering and are the only platform to offer Pre-Funding.  This allows the lender to specify how much they wish to lend on future ‘pipeline’ loans.  In other words you can bid or buy on the secondary market without the need to pay money into the platform up front.  However, once transactions are completed you are asked to settle up within 24 hours.

Anyway, here is wishing you all a very happy and peaceful Christmas and a prosperous New Year.  

Finally, if you haven't tried it, then why not consider including Peer to Peer Lending in your 2016 portfolio?   Trust me, Peer to Peer Lending is a great way to improve your financial prospects!  


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