Getting started with P2P lending

Hello and welcome to my brand new personal P2P finance blog

A little about me

First, a little about me and my savings and investment goals:

I’m an accountant currently working for a global professional services firm. I relatively recently bought my first home (with a ~20% down payment) and anticipate staying there for quite a while so am happy to not have instant access to the savings I have for a little while.  

My investment goal is to increase my current savings as much as possible over the next few years with no specific aim other than to build my disposable income.

I’ve launched this blog to experiment with P2P investment and publicly showcase the results so that whomever may stumble across this website can make a more informed decision regarding potential P2P investment.

Investments in P2P form only a small part of my investment plans, with most of my disposable cash being invested in a global equity tracker.

I will aim to post updates on my portfolio and any new investments, so you can see which platforms have worked / not worked, for me.

I will also outline both the risks and potential benefits of investing in P2P as part of your investment portfolio, drawing directly from my own experience.

Whilst past performance is no indicator or guarantee of future results; I personally find it can be really useful to see how others have fared and it seems as though there are a lack of websites focused on P2P and the actual returns generated.

My savings/investment plan

So off the bat; here’s my plan.

I have placed an initial £9,000 into P2P lending.  This has been spread across multiple platforms in order to benefit from various P2P cashback offers.

If you are intending to invest in P2P, I would recommend looking into this approach initially as you have the potential to significantly increase your first year returns. For instance, I’ve taken Growth Street up on their offer to give £200 cashback provided I invest £2,000 for a one year. Given Growth Street advertise expected returns of 5.3%, this would be a potential combined 1 year return of 15.3% (massive compared to the current low interest rate savings environment).

Here is the full list of platforms I have invested in to start:

  • Growth Street (£2000 invested with £200 cash back and up to 5.3% expected returns)
  • Kuflink (£500 invested with £100 cash back and 7.0% expected returns)
  • RateSetter (£1,500 invested with £100 cashback and 3.5% expected returns)
  • Property Partner (£2,000 invested with £30 cashback in an opportunistic property fund targeting 10% returns)
  • Lending Works (£1,000 invested with £50 cashback and expected 5.0% returns)
  • Funding Circle (£2,000 invested with £50 cashback and expected returns of between 6.0-7.0%)

Total invested = £9,000

Blended expected interest rate excluding cash back = 6.26% (£563.50 interest).

Blended expected first year returns including cash back = 12.15% (£563.50 interest plus £530 cashback).

The proof (in terms of absolute returns) will be in the pudding!  I will be sharing my P2P investment returns over time.

I intend to only review P2P platforms in which I have made an investment personally. I will be giving my honest opinions of the platforms which will hopefully enable my readers to avoid repeating any mistakes I make along the way!

Please do leave comments as I’m keen to hear your own views and experiences with the products I review and other innovative P2P platforms.

Note: I am not seeking to provide financial advice. If you are going to invest, please do take care to do your own due diligence and do not take my views as personal recommendations as everyone’s individual financial circumstances, goals and risk appetite are different.

Comments (No)

Leave a Reply