A recent article on the Peer-to-Peer Finance News suggested that RateSetter’s generous £100 welcome bonus for new customers was coming to an end. A favourite of newbies to P2P lending, the new customer bonus gives an effective 10% return on a £1,000 deposit with a well-established platform even before interest returns. Read more “RateSetter Ends Welcome Bonus Midnight October 6th”
I really enjoy writing reviews of peer-to-peer lending platforms and the excuse to dig a little deeper than I otherwise would do. However, as I write more for this blog I feel what is lacking is an easy and objective way to compare the different sites. For each platform I’d like to start with a common ‘report card’ or ‘cheat sheet’, with things like: Read more “Building a Peer-to-Peer Analytics Dashboard: Part 1”
UK Property Crowdfunding: The Ultimate Guide
Property Crowdfunding or ‘crowd-to-let’ platforms allow investors to buy shares in a property from just £10. Investors benefit from capital growth and rental income without the hassle of buy-to-let management and with the ability to diversity a lump sum across many properties. Investments can be in both commercial and residential property and can use leverage (mortgages) to increase potential price increases. These companies tend to set up a single ‘SPV’ (Special Purpose Vehicle) as a UK Limited Liability company for every new property asset. The number of property crowdfunding websites has absolutely exploded over the last year. Depending on how public opinion and government regulation responds, we can expect property crowdfunding to revolutionise the UK property market over the next decade. Read more “Property CrowdFunding”
My Experiences With New Customer Sign-Up Bonuses
First written 8th September 2016, last updated 27th December 2016.
Traditional banks like HSBC, Cooperative Bank and First Direct have been running signup bonuses of up to £150 for years to attract new customers. Many of the latest Fintech startups and peer-to-peer lenders have followed suit with bonuses generally from about £25 to £100. For a lending platform trying to attract new investors in what is now such a crowded market it’s worthwhile. For investors, it provides a buffer for potential bad debt on individual loans and more than offsets the time lag in queuing for your funds to get invested. On some platforms like RateSetter who offer £100 on a £1000 investment it can increase your first year return to over 16%. Read more “New Customer Cashback Experiences”
MoneyThing.com provides secured loans against assets such as property or vehicles. The parent company, Capital Mortgages Direct, has been running since 2004 but only launched its peer-to-peer site in November 2014. Investors receive between 10% and 13% per annum with loan-to-value between 60% and 80%. Borrowers pay rates as advertised from 1.5% per month, so the platform and its partners are sustained between lending at 1.5% per month and paying investors 1%. The platform is popular on the P2P independent forum and with investors: loan origination more than doubled in the first half of 2016 to £18,000,000. It is a manual investment platform: there’s no auto-bidding and you have to manually log in and bid on loans as they are released, generally at 4pm. Read more “MoneyThing Review”
My Peer-to-Peer Income Snapshot
Current Amount Invested: £15,425
Monthly Income: £89
Annualised Return: 7.21%
Additional New Customer bonuses: £65
Annualised Return inc. bonuses: 12.73%
Annualised Return excl. bonuses: 5.6%
Annualised Return inc. bonuses: 16.7% Read more “August-16 Income Report”
Can you consistently achieve returns of 10%+ investing in Peer-to-Peer platforms?
Is it possible to earn 10% or more from a portfolio of peer-to-peer lending sites? Many of the more established platforms offer rates of 7% or less, but often come with the upside of a more established track record and often provision funds to cover against losses.
Higher returns often come with increased associated risks. However, I think with a diversified set of loans across a number of the highest paying platforms you can reduce the potential losses from an economic downturn, platform risk or other unexpected shocks. Going forward I am going to track a subset of my peer-to-peer investments which I’ve labelled as the ‘10% club’. These are: Read more “10% Club”
Not to be confused with ‘Orchard Platform’ or ‘Lending Club’, Orchard Lending Club is a new peer-to-peer lending platform backed by an established AIM listed company. Lenders invest in ‘hands off’ fixed term products rather than individual loans. Capital is guaranteed by the parent company, Orchard Funding Group PLC, whose constituents have been running for up to 20 years. Read more “Orchard Lending Club Review”
eMoneyUnion provides personal loans to borrowers at a representative APR of 9% for a secured first charge on a low LTV property up to 84.5% for unsecured loans to those with low credit ratings. In turn lenders are paid between 7% on similar secured loans and up to 15% for the riskiest rated unsecured loans. The difference between rates for lenders and borrowers can partially be explained by contributions to the provision fund, as borrowers contribute up to 25% of repayments into the ‘eProvision Fund’ that exists to cover bad debts. Read more “eMoneyUnion Review”
Funding Secure is a peer-to-peer lending platform which specialises in secured loans. By providing finance against the personal assets of borrowers (‘pawn loans’ or against property) investors have means to reclaim capital in the event of a default. Investors receive returns in the range of 9% to 13% per annum whilst borrowers pay a representative APR of 35.4%. Most loans are for 6 months and may either repay without penalty at any time or renew at end of term. Some loans have cashback offers and bonuses for large investments of up to 4% above the standard returns for general investors. Read more “Funding Secure Review”