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Post by df on Sept 30, 2022 18:23:36 GMT
That didn't last long: Product no longer available
Only fixed rate bond available now is 3.25% for 5 years. They must have raised the funds they intended to raise, NC is a small BS so such an attractive (4.1%) looking offer could fill the gap very quickly. I wouldn't go for it though - it's not a good time for locking your cash, even at rate that looks great today.
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littleoldlady
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Post by littleoldlady on Jun 7, 2023 8:14:18 GMT
This is what LP themselves say about their platform:
Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong.
IMO 4.4% is far too low a premium above the best FSCS account to warrant any risk whatsoever. I agree that LP is relatively very secure and it would take a once in a decade financial crisis to cause it problems. (It's now 15 years since 2008.)
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dave2
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Post by dave2 on Jun 7, 2023 10:32:55 GMT
This is what LP themselves say about their platform: Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Not specific to LP, it is not their words. I believe that all P2P sites now have to display that standard warning, as mandated by the FCA. IMO 4.4% is far too low a premium above the best FSCS account to warrant any risk whatsoever. I agree that LP is relatively very secure and it would take a once in a decade financial crisis to cause it problems. (It's now 15 years since 2008.) The Loanpad Premium account currently pays 5.4% with 60 day access, with scheduled rises to 5.6% on 19-Jun and 5.8% on 17-Jul. Still need to consider how comfortable you are with the relatively small premium over deposit accounts with FSCS protection.
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Post by Ace on Jun 7, 2023 12:06:44 GMT
This is what LP themselves say about their platform: Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. IMO 4.4% is far too low a premium above the best FSCS account to warrant any risk whatsoever. I agree that LP is relatively very secure and it would take a once in a decade financial crisis to cause it problems. (It's now 15 years since 2008.) According to 4thWay you're massively overstating the likelihood of losses at Loanpad (as does the ridiculous risk warning that the FCA make them display. There's no way that Loanpad could be considered a high-risk investment). 4thWay say: " For any one loan to end in a loss, something really extraordinary would have to happen. It’s realistic for lenders to expect to make money with Loanpad in all market conditions, including a severe recession and major property crash." They also say: " An investment that will keep your money safe through everything short of nuclear war". Personally, I'm very happy to keep cash at Loanpad that would otherwise be in FSCS protected accounts, purely to be able to leave it in one place rather than have to constantly chase the current higher paying accounts. Although the margin over top FSCS rates does sometimes drop too low, Loanpad do gradually push their rates up to stay ahead, and have always kept above them so far. I wouldn't use Loanpad for my first tier emergency funds. Only FSCS or NS&I will do for that.
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littleoldlady
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Post by littleoldlady on Jun 7, 2023 18:02:37 GMT
Everybody has their own risk/reward ratio. The older one gets the less time one has to recover any losses. Each to their own, I was just giving my position.
However I would not have much credence in anything 4thWay say, they are over optimistic on p2p generally and AFAIK gave no warnings about the several platforms which have failed with investor losses (but please correct me if I'm wrong). The phrase "An investment that will keep your money safe through everything short of nuclear war" is patently absurd.
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Post by overthehill on Jun 7, 2023 18:17:27 GMT
Everybody has their own risk/reward ratio. The older one gets the less time one has to recover any losses. Each to their own, I was just giving my position. However I would not have much credence in anything 4thWay say, they are over optimistic on p2p generally and AFAIK gave no warnings about the several platforms which have failed with investor losses (but please correct me if I'm wrong). The phrase "An investment that will keep your money safe through everything short of nuclear war" is patently absurd.
4thway haven't had a rating for any platform that has failed to my knowledge (or any that I've lost money with). They list a lot of P2P companies with no ratings purely as acknowledgement of them being P2P. So the corollary is that if every P2P investor had stuck with 4thway then they would have avoided all the ponzi clusterf*cks that dominate this forum.
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Post by Ace on Jun 7, 2023 20:05:54 GMT
Everybody has their own risk/reward ratio. The older one gets the less time one has to recover any losses. Each to their own, I was just giving my position. However I would not have much credence in anything 4thWay say, they are over optimistic on p2p generally and AFAIK gave no warnings about the several platforms which have failed with investor losses (but please correct me if I'm wrong). The phrase "An investment that will keep your money safe through everything short of nuclear war" is patently absurd. Is it really absurd? Loanpad's maximum LTV is 50% of current value (not future GDV), with a current average LTV of 43%. UK property prices haven't dropped 50% in living memory. I accept that the phrase is rather flippant, but is it really absurd?
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littleoldlady
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Post by littleoldlady on Jun 7, 2023 21:35:50 GMT
Everybody has their own risk/reward ratio. The older one gets the less time one has to recover any losses. Each to their own, I was just giving my position. However I would not have much credence in anything 4thWay say, they are over optimistic on p2p generally and AFAIK gave no warnings about the several platforms which have failed with investor losses (but please correct me if I'm wrong). The phrase "An investment that will keep your money safe through everything short of nuclear war" is patently absurd. Is it really absurd? Loanpad's maximum LTV is 50% of current value (not future GDV), with a current average LTV of 43%. UK property prices haven't dropped 50% in living memory. I accept that the phrase is rather flippant, but is it really absurd? Are you really saying that you cannot imagine any scenario, other than nuclear war, which could cause a collapse in the property market? Epidemic, asteroid strike, massive solar flare, full scale non-nuclear war, Robots revolution, large scale banking collapse, 1930's style total market collapse.....
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Post by Ace on Jun 7, 2023 21:52:46 GMT
Is it really absurd? Loanpad's maximum LTV is 50% of current value (not future GDV), with a current average LTV of 43%. UK property prices haven't dropped 50% in living memory. I accept that the phrase is rather flippant, but is it really absurd? Are you really saying that you cannot imagine any scenario, other than nuclear war, which could cause a collapse in the property market? Epidemic, asteroid strike, massive solar flare, full scale non-nuclear war, Robots revolution, large scale banking collapse, 1930's style total market collapse..... Fair point. No. As I said, I think it was a rather flippant comment. I think it was trying to indicate how remarkably safe one's funds would be with Loanpad rather that being taken literally. If you really want to take it literally, I'd say it's debatable whether some of those you mentioned were short of nuclear war. House prices didn't crash by anywhere near 50% in the 1930s. Loanpad sailed serenely through the last pandemic. Not so sure about the others ... but, fair enough, I suppose it was a bit absurd.
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jonno
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Post by jonno on Jun 8, 2023 13:18:19 GMT
This is what LP themselves say about their platform: Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. IMO 4.4% is far too low a premium above the best FSCS account to warrant any risk whatsoever. I agree that LP is relatively very secure and it would take a once in a decade financial crisis to cause it problems. (It's now 15 years since 2008.) Whilst I wouldn't disagree with your fundamental point, there is one nuance that your point ignores. The bulk of my FSCS savings are taxed at 40%; because I have suffered significant P2P losses (as many of us have), I can at least use these to offset P2P income. It therefore seems sensible to try and find as "safe" a platform as possible to make use of this, and for me Loanpad falls into this category. The impact of this tax saving is considerable. Of course I'm not suggesting that I would throw all of my saving eggs into this one particular basket, but it can play a useful (if slightly riskier ) role in a diversified portfolio.
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Post by Harland Kearney on Jun 8, 2023 13:34:20 GMT
As is with all risk, the objectives of investors change over time & therefore so does the sensible risk allocation, there isn't a right or wrong answer only a right or wrong circumstance.
If Loanpad is used as an alternative investment say alongside your stock portfolio for the next 10 years, yes it's a good bet. In many ways, it could beat the bond's risk on/risk off problems with central banking rates essentially playing wack a hole with valuations recently.
If you need the cash for your next Tax Bill in 6 months, then the answer should be obvious.
The extra 1-1.5% interest above the normal banking rates outside of 3-5 year bank bonds has its place.
For those curious, my main reason for using Loanpad is in relation to their limited company accounts, the limited company accounts in the banking sector interest rates are duly lacking. The going rate at Loanpad is far higher than competitors opposed to business banking. I have a significant sum in Loanpad & the interest it provides is invaluable in my wider portfolio.
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Post by scepticalinvestor on Jun 25, 2023 13:53:57 GMT
For those curious, my main reason for using Loanpad is in relation to their limited company accounts, the limited company accounts in the banking sector interest rates are duly lacking. The going rate at Loanpad is far higher than competitors opposed to business banking. I have a significant sum in Loanpad & the interest it provides is invaluable in my wider portfolio. That's interesting, I'm currently plonking retained earnings in Aldermore business savings, can't remember how much they're paying now, probably around 3% or so. Will have a look at this.
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Post by Harland Kearney on Jun 25, 2023 19:58:43 GMT
For those curious, my main reason for using Loanpad is in relation to their limited company accounts, the limited company accounts in the banking sector interest rates are duly lacking. The going rate at Loanpad is far higher than competitors opposed to business banking. I have a significant sum in Loanpad & the interest it provides is invaluable in my wider portfolio. That's interesting, I'm currently plonking retained earnings in Aldermore business savings, can't remember how much they're paying now, probably around 3% or so. Will have a look at this. Yes I'm also using Aldermore as my quick access savings for my LTD, its 3.05% currently moneyfactscompare.co.uk/business/business-easy-access-savings/Decent website to find the best rates. Everyone's business is different but mine generates large cash flow profits & is not capital-intensive. The main reason it hangs around in the LLC is due to the UK Tax laws essentially keeping it there. I find most of the investment grade accounts for mainstream investments such as Vanguard platform ect are very expensive, especially if your business earns under 250k a year in profit. Loanpad has no additional fees straight forward but still carries exceptional risk compared to a bank, I'm sure we all know that by now but the risk-adjusted returns make alot more sense in LTD with Loanpad than personal investors, a little ironic really.
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dead-money
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Post by dead-money on Jun 27, 2023 13:54:02 GMT
If you have a limited company you could pay Corporation Tax on account and earning 4.25%, soon to be 4.75%. Beats any business savings account.
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Post by Harland Kearney on Jul 18, 2023 0:36:25 GMT
LP now pays 5.8% 60 days access & 4.8% classic ("instant") respectively.
6% to come on 1st August for 60 days & 5% for Classic.
I think we will see 6.2-6.6% depending on the direction of further hikes in the UK. I think the argument for using Loanpad over a 1 yr FSCS-protected bond is now almost exclusively with access timing. Been continuing to add to my positions using LP as a safe heaven for dry powder as I drip recent earnings into the stock markets still (an index for the long run) very useful tool. & as I've stated a few times, a good holder for LTD Company cash, all the caveats of P2P for granted of course. 
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