Compare P2P lending accounts and IFISAs now

December Lending Blues

Click "Learn" to get help

By on 4 December, 2014 | Read more by this author

Zopa, the world's oldest P2P lending Company, says its lenders set great store in transparency, so it has started to take steps to become much more open on when your money will be lent. This makes sense; we all become much more patient and complain less when we know how long we've got to wait in line for. More than anything, we just want to be told.

When you send money to a P2P lending website for lending, it can take many days before your money is in a loan working for you. Not always, and not at all P2P lending companies, but it's pretty normal. The wait normally means your money is earning nothing, rather than the 1% per year it would have been earning in a savings account.

According to Mat Gazeley of Zopa, the P2P lending company deliberately decided to improve its information to lenders on queuing time by the run up to December, in order to give lenders a heads-up in this difficult time.

Lending in December is not so easy.

Perhaps you might even find that some new money is unlent till the New Year.

Rates in January, after the Christmas binge, could well be higher to compensate, as borrowers realise that they've blown the Christmas bonus again and need to roll over.

It makes you wonder just how ethical and social P2P lending is sometimes, until you see the people who are using their loans for sensible purposes too: buying second-hand cars for work purposes, buying their own home with a large deposit, investing in courses to increase their salaries. All those things that make you better off in the long run so that you don't have to borrow again to fund your next holiday.

Last December my cash took, on average, three times longer to invest than the preceding months! Right now I'm doing okay somehow. And a default at FundingKnight has saved me from needing to re-lend those repayments, although I could probably have managed it,

For those of you who are at the rear end of a queue, this is perhaps a time to wile away an idle hours looking for unusually good deals on Funding Circle or another platform where there is a large secondary market. Or to read my ramblings late on a Thursday night.

But my next blog is going to be especially focused and non-rambling. I've got a great one coming up…

Leave a Reply

Your email address will not be published. Required fields are marked *

Today’s average interest rates

What is the “4thWay”?

There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
Learn more.

What does 4thWay do?

We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

Why use 4thWay?

4thWay® is shaped by investors, bank risk modellers and a senior debt specialist, and we're governed by our users to ensure our comparison services and research are trustworthy and complete.

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
Back to top