P2P Lending Portfolio Update For August 2019
Last Updated on 1st September 2019 by Mark
In August 2019, income from the Peer to Peer Portfolio again took a small dip. The problem this time was all Funding Circle which once again hit my account with big default losses to the tune of £206.81. So instead of the usual £170+ income, I ended up with a £86 loss for the month.
On a more positive note, total GBP XIRR rose to the highest level yet from 5.73% in July to 5.85% in August, getting closer to that 6% level I one day hope to achieve.
XIRR for the Euro Portfolio this month increased to an overall 14.90%. I increased my investments a bit in Crowdestor and Envestio, and also added a new euro lender, Swaper. More on that later in the update.
I moved some more capital from Funding Circle in August (just repayments, I didn’t actually sell anything yet but the sell order has been in for 60 days now). The plan I mentioned again last month to redistribute some of my Funding Circle capital along with capital from some of my other larger accounts is still in play. Luckily this month I didn’t need to move any GBP’s out of Mintos as the it appears MoGo car loans are coming up more on the secondary market so my auto-invest rules are picking them up from there and keeping me invested. I had to move £500 out of Lending Crowd as their loan flow has become significantly less and there are so many investors that it’s not possible to get the higher rates I like. Loanpad got most of the money moved, plus a bunch more.
August 2019 Lending Update
On to the individual updates!
First though, the usual “affiliation & cashback” disclaimer:
There are some great cashback incentives for new investors right now. I have listed them at the end of each lender update, or you can always see my cashback page for current offers on all lenders.
If you are considering investing in any of the lenders I write about, and you think my website is helpful in your research, please consider using my links as I can sometimes get a small commission from the lenders which costs you absolutely nothing and helps me continue to run the website.
Charts and spreadsheet updates are below. You can see current versions of these anytime here.
You’ll notice the charts below are only showing 12 months of data. This is because the table was getting too big so moving forward I’ll just be using the floating 12 months which is really the most relevant data. You can always get a copy of all of my lending data by downloading a copy of the spreadsheet I use to track my investments.
You may also notice I have changed the spreadsheet and charts I use to display figures on my site. This is because I was having trouble with the plugin I was using (it wasn’t able to handle all the data I had in there) so I went to Google Sheets for everything and it seems to be working better. If you experience any issues with viewing charts or sheets on the site please let me know so I can fix it.
Monthly GBP Lender Tables (only last 12 months shown,). CLICK TO ENLARGE.
Individual Lender Updates
I sent just another £100 over to Ablrate this month to pick up a new loan that came in at the beginning of the month. Interestingly there were another 3 loans in August which was the most I think I’ve seen from Ablrate in a month. I didn’t bother with the other 3 as I had the capital tied up elsewhere.
XIRR jumped back up to 14.48% in August from 13.58% in July, so again back to beating their target rate. You’ll note that the XIRR on Ablrate is huge (for a UK lender). 14%+ which I believe is mostly due to some secondary market loans I bid on. When bids are accepted lower than the original loan value on the secondary market, the XIRR goes up to reflect this.
Here are a few of the new loans that came in this month.
Here are my current investments.
Ablrate Signup & Cashback Offers
Ablrate offer an exclusive cashback offer to readers of The Obvious Investor – when you sign-up with Ablrate and receive 0.5% cashback on your first investments.
Assetz Capital have just become my top lender by return value in August, just taking over Funding Circle because of the bad debt hit. Assetz have returned a total of £2,040.47 since I began with the public portfolio.
I really would like to send over more money to Assetz Capital and I will once I sell out some of my Funding Circle account. Assetz really are one of the top lenders in the UK right now. Asset security and great return rates can’t be beat!
On top of all that, Assetz Capital has launched a great new cashback offer for September! £150 cashback for investing £5,000. Here are the details;
- Open to new customers to the Assetz Capital platform from 1st September
- Customers must complete their registration by midnight on 30th September
- They must invest £5,000 or more by midnight on 7th October
- If they keep the funds invested for 12 months, they will receive £150 cashback
If you missed their last cashback offer, don’t miss this one! Click here to take advantage of Assetz Captial’s latest £150 cashback offer. You’re missing out if you you’re not lending with them.
Soooo, Funding Circle….. After my disgust with the defaults last month, Funding Circle again hit me with some more defaults in August, £206.81 to be precise. Not as bad as the £251.45 hit last month, but still not pretty. This really once again skewed the overall total GBP portfolio income keeping it below £1,000 for the month. Actual XIRR also took another hit from 6.50% to 5.96%. I withdrew another £1,000 over August which just came from repayments, nothing sold yet. The number of loans marked as “Late” increased again on top of the defaults from 23 last month to 27 in August. Not a good sign.
Now, this might sound silly but I’m not freaking out yet. Once I’ve sold half of my holdings (which are now taking an average of 94 days to sell), I’ll reevaluate and see how Funding Circle’s financials are looking then. They raised £300 million in their IPO last year, and they still have most of that left in cash as I understand it, so they are still looking quite healthy as a company. You can read their latest Annual Report here if you need something to read.
So, although they are experiencing high defaults, as a company I believe they are still strong. If what I’m reading about the defaults is true (they are coming from a lapse in credit criteria because of their IPO, trying to get turnover up to boost the value), things may pick up in a few months. True though if FC were a smaller company, I might be a bit more concerned.
For anyone considering investing in FC, I would suggest you wait and see how things pan out. However if you’re a new investor and do still want to diversify with Funding Circle, they currently have a cashback offer for new investors: Invest £2000 and receive £50 Amazon Gift Certificate. Click here for more info. Use this link to qualify for the cashback.
Lenders like Growth Street make a lot of sense for anyone listening to the news about possible recession and all the negativeness out there right now in my opinion. The ability to make a short term investment, but have the ability to get your capital back in 30 days at 5.3% annual return if you get nervous, or if the economy pulls back and looks like recession and you want to lower your exposure to P2P.
August was just like every other month with Growth Street. Nothing to do but log in and check the account once per month and see how much income I’ve made so I can enter it here on my site for the monthly P2P update.
XIRR rose a again this month to 5.14% (up from 4.94%) bringing the number ever closer to the 5.30% target rate they suggest. I have no doubt the account will hit this target rate in the next couple of months. 5.30% is really very good for only having your money tied up for 30 days at a time.
For new investors, Growth Street have a very decent cashback offer: Invest £5000 or more for 1 year for £200 cashback. Click here for more info. You’ll notice that last month I got the anniversary cashback from Growth Street which proves that they pay the cashback 🙂
Growth Street definitely should be considered for any short term portion of a lending portfolio in my opinion.
I didn’t send any more money over to Kuflink this month. I decided I wanted to increase my Loanpad investment more so I sent capital over there instead. Kuflink income was a little better this month at least, getting back in line with normal income at £47.31 which is the second highest month’s income with them.
XIRR normalized again after the dip in July going from 5.65% to 6.15% in August.
Kuflink have a wonderful cashback offer right now which is well worth taking advantage of if you are thinking of investing with them. It equates to 10% at the lower level, and 5% cashback when you get to £5000. Not half bad for asset secured loans with these kind of low LTV’s.
£50 cashback for £500 – £999.99 investment
£100 cashback for £1000 – £4999.99 investments –
£250 cashback for £5000+
Landbay are still plodding along. Nothing to see here. XIRR is now almost right at the target rate of 3.49% sitting at 3.45%. Landbay is about the closest to a bank deposit in my opinion because of the safety factor. Of course bank level (=low) annual returns come along with that safety (see my Landbay Review for more info).
For the said-to-be-safer option for your money, or just for some diversification, Landbay currently have an incentive for new investors: £50 cashback when investing £5000 or more. Click here for more information. Taking this cashback offer increases your income on this investment by 1% for the first year which helps.
One of the reasons I’m not freaking out about the Funding Circle defaults right now is because of what happened with Lending Crowd earlier in the year. If you remember, they were seeing a high rate of defaults, but they got it back in hand and now loans in arrears and defaults are pretty much exactly what is expected. There always seem to be between 7 and 12 loans in arrears (10 this month) and typically around half of them catch up with payments and become current again. This is credit to the Lending Crowd customer management team and how they work with their customers. In fact, many investors are noticing this and now Lending Crowd loans are much in demand. I had to move £500 out of my Lending Crowd account this month because I couldn’t get it invested. Loan flow has been less over the last couple of months, I’m thinking because of the holidays. I’ll keep watching and when it increases again, you can bet I’ll be sending over more capital to bid on those nice, high rate loans.
XIRR jumping once again this month from 7.60% to 7.91%. My targeted annual return is sitting at 8.02% while what Lending Crowd say is my actual return is sitting at 8.22%.
If you’re new to Peer to Peer lending and would like a shot at some higher rates; take a look at one of the last P2P lenders that still allow bidding on loans so you can get the best rates! Lending Crowd have Up to £400 cashback for £10,000 investment. Click here for more info. See my Lending Crowd Review if you would like to read about bidding on loans.
What is there to say about one of the safest lenders, Lending Works. Constantly deliver what they promise. XIRR keeps slowly climbing from 5.60% last month to 5.81% in August. Lending Works own target numbers for my account stayed the same 6.21%. The reason for the discrepancy between XIRR and the target rate is that the 5 year target rate was only 6.00% when I first invested. Since then it’s grown to 6.5% so my repayments are getting reinvested at the higher rate. But much of my original investment is still at the 6% rate so it will take a while for it to grow to the current target.
You really can’t go wrong with Lending Works. Great rates with the safety of the best provision fund in the business, the “Lending Works Shield“. There’s a reason they are one of my largest lending accounts with almost £32k invested and I’m even considering adding some more.
If you decide to invest with Lending Works (which if you’re getting in to P2P, is a sensible idea), they still have the 6.5% available on the 5 year investment.
Use this link to get £50 cashback for investing just £1000 with Lending Works (for new investors).
I increased my investment in Loanpad again by £2,000 in August. I’m still watching them but I really like the low LTV’s on ALL of their loans (see screenshot below), plus their loan originators 20% – 60% “skin-in-the-game“. Just as important is the ability to withdraw capital with just 60 days notice on the premium account and instantly on the classic account.
The XIRR climbed significantly to 6.56% in August. That’s on a target return suggested by them of 5.00%. This is because the Loanpad target rate on the account is the actual rate you get, not taking in to consideration investing all of the returns for the effects of compounding. As opposed to the AER (Annual Equivalent Rate) given by most other lenders (both Peer to Peer and Banks/Building Societies) which estimates the rate based on all of the interest being invested back in to the account.
That being said, almost 2% above the target rate is more than expected, and I think it has more to do with the large increase in capital and timing. I do not expect that XIRR to be the norm. I’m expecting Loanpad XIRR to settle somewhere around 5.5% realistically, which I will be totally happy with.
I know I do this every month but I wanted to once again point out the low LTV loans I’ve been automatically invested in. See below, around 5%? Very unlikely anyone will ever lose any capital with asset security like that.
If you’re going to invest with Loanpad (which you should definitely consider if you’re building your P2P portfoio). They have a cashback incentive right now – £50 bonus if you invest into a lending account a minimum of £1,000 within 4 weeks post registration and keep this invested for 365 days; or £150 bonus if you invest into a lending account a minimum of £10,000 within 4 weeks post registration and keep this invested for 365 days.
Loanpad also enable tax free investing through an ISA so click here if you are interested in reading more about the ISA.
Luckily this month I didn’t need to move any GBP’s out of Mintos as the it appears MoGo car loans are coming up more on the secondary market so my auto-invest rules are picking them up from there and keeping me invested. The Mintos supplied target rate rose just 1 pip from 9.70% to 9.71% and XIRR rose from 9.09% in July to 9.52% in August. No complaints here about that 🙂
Unfortunately Mintos are saying that UK residents can no longer invest in Mintos loans for now. Hopefully that will be ratified soon. As far as I understand it, Mintos are still talking with the FCA to supply loans to UK residents.
So if you’re a UK resident, hold your horses for a few weeks and hopefully Mintos will be available to UK residents.
If you are NOT a UK resident, Mintos have a wonderful cashback bonus, one of the best in fact. Mintos offer 1% of the value of your investments cashback for the first 90 days you are investing with them!
It appears that RateSetter rates were still hovering around 6% for most of August. Even though the screenshot below says 5.6% on the 5 year, that’s just an average for the month. I have my reinvestment rate set at 6.0% and I am getting very little cash drag so that’s really good news. My XIRR climbed above 5% for the first time to 5.16% which I’m happy with. When I first got in my rate was 5.2% so most of my 5 year investments are still at that level but getting reinvested at 6%.
The rates were down for a few months but for the last few they’ve been pushing above 6% which is very good for a large lender like RateSetter with a good provision fund.
As you can see below, the averages have been climbing in the 3 year but stayed flat in the 5.
RateSetter is an excellent option for diversification and safer lending with a big lender. RateSetter’s very well funded provision fund doesn’t hurt either. As rates are up around 6.0% again, now is a good time to get in if you were thinking about it.
RateSetter is offering £100 cashback for investing £1000 for a year (10% ON TOP OF standard returns, so even if you only want to invest £1k, you’ll get 16%+ back for the first year), it is definitely worth considering, especially if you can get in at the 6%+ level.
I sent another £500 over to Unbloted in August as they still seem to be able to soak up capital. My newly found method for getting capital lent out faster is still working, however it did take a little longer in August. It took about 2 weeks to get the whole £500 lent out but I’m seeing that with most lenders now, I think because of the holidays, new loans seem to be less available.
XIRR made a big jump in August from 7.85% in July to 8.45% in August keeping Unbolted as my second highest GBP account based on XIRR second only to Mintos (not including Ablrate which is mostly from secondary market loans and not sustainable I don’t imagine, although they should still be high. I just need more data from them before I can crown them the top). See my Unbolted Review for more information on how I’m getting more capital lent out.
Still getting reasonable diversification on the loans.
I added one more Euro lender in August: Swaper. You can read more about them below. I also sent another €1k to both Crowdestor and Envestio. I’m still looking at possibly adding some other Euro lenders to the portfolio, but still doing my research.
XIRR numbers from the Euro Lenders keep getting better. Up again to 14.90% in August from 13.15% in July.
Total income in euros for July was €418.65. The highest month yet, which should be expected since I added significantly more investment capital over the last couple of months.
Monthly EURO Lender Tables (only last 12 months shown,). CLICK TO ENLARGE.
I started to see some more loan payments kicking in from Crowdestor in August. XIRR jumped from 11.73% in July to 13.78% in August. Some of the loan payments still haven’t kicked in yet so hopefully that will rise even more down the road.
I sent over another €1,000 and picked up 2 more loans and reinvested the interest which had come in.
Here is a list of my current investments with the last 2 loans made in August:
Crowdestor are one of the best options for high returns. If you’re interested in giving Crowdestor a try, click here to go to their website and see current offers!
Envestio still appear to be the Euro Peer to Peer investors babe. Loans are filled up in just a few minutes of launch which makes them difficult to get. In August however they finally released their auto-invest feature, so I had to send over some money to give it a go. I sent over €1k and set the auto-invest at a maximum of €500. Sure enough a loan came in and I got invested at €500 without having to touch a thing! In August I wrote a review on Envestio where I describe the auto-invest feature if you’re interested.
Unfortunately loan flow has been very slow again in August, just like with some of the UK lenders. Hopefully that will be rectified after the holidays and I can pick up some more Envestio loans.
XIRR jumped to a huge 17.29% in August now some of the newer loan payments are kicking in. That’s up from 14.18% in July.
Here are my current loans:
If you’re interested in investing with Envestio, there is a €5 bonus for the first €100 deposit + 0.5% cashback from all investments for 270 days. Click here for further information. Although they appear to be more risky than some of the UK investments, they have had zero defaults so far, and I’m willing to take the risk for 17%+ returns.
Read my new Envestio review if you’re still on the fence so you can get all of the facts.
Grupeer loans are still coming in, and because of the auto-invest feature, I haven’t touched anything on this account since my first investment with them. I’m trying to lean more and more to this type of account with auto-invest. Even though their returns are (only, haha) around 13%, it’s worth the extra few percent for the lower hassle factor of not having to vet loans.
XIRR jumped again this month to 13.86% from 12.06% in July.
I’ll be putting some more euros in to Grupeer soon to diversify a little more. Hopefully I’ll have enough information on them to do a full review soon, they are next on the list.
I’m not going to waffle on about how much I love Mintos this month as I know it’s irritating many potential new UK Mintos investors who can’t open an account right now.
My Mintos euro lending target rate rose to 13.26% in August from 13.24% in July. XIRR jumped this month as well to 15.55% from 14.47% last month. This is still more than the Mintos target. I think this is because Mintos is not taking into account that most of the short term loans are with the loan originator Varks who actually pay interest on delayed loans until they hit the buyback guarantee. Either way I’m not complaining about that.
If anyone is interested in how I have my auto-invest setting with Mintos, I did a more in-depth description in last months update.
Remember, if you are new to Mintos, they have a wonderful cashback bonus, one of the best in the business in fact.
I like RoboCash as it is another account which requires zero time to mange.
Still no problems with the overdue loans. There is always quite a high percentage of loans late, and they just get bought back each day by the buyback guarantee. It does not affect the returns on the account at all.
They are currently showing XIRR returns of 13.20% right now, up from 12.03% last month and quite a bit higher than the 12.00% target RoboCash suggests. No complaints here about that. It seems that most of the euro lenders seem to under promise and over deliver on the returns which I really like.
Swaper are a new lender added to my portfolio this month. They are much like Grupeer and Robo.Cash as far as auto-invest loans offering around the 12% – 13% target income levels. They have a good reputation with the European Peer to Peer community, however until recently I have held off investing with them because I was reading about investors seeing a lot of cash drag (un-invested funds). Recently however it seems to have been better so I decided I would give them a go.
I’m not going to write too much about Swaper here as I want to watch how they do. I sent over just €2000 initially to see how it gets distributed. I’ll report on Swaper with more detail in coming months.
Another month passed and my Peer to Peer lending portfolio keeps growing slowly. I hope to get back to the £1,000+ per month income on the GBP portfolio, and €500+ from the euro platform in the coming months. Only time will tell though and the GPB income may stay low for a while depending on how long it takes me to sell out some of my funds from Funding Circle and invest the capital elsewhere.
You can always go back and look at the previous updates for more details on why I’m investing in these companies and my ongoing lending experiences.
Finally I hope the month of September goes well for everyone. I wish you all the best of luck with your investments. I will update you on my P2P Portfolio investments around the same time next month.
Thanks for reading my blog! Please feel free to comment below if you have comments, questions, criticisms or suggestions. You can also email me if you prefer. I love feedback!
Please note, most of the cashback offers on this site are for new lenders to a company. I suggest you do your own research before investing as cashback offers change daily.
If you’re new to Peer to Peer Lending, you can learn more about it on my page About Peer to Peer Lending. Also take a look at my Peer to Peer Lending Guide, Where to Start if you’re just thinking about getting your feet wet. Individual lender reviews are all here.
Who Are the Best Peer to Peer Lenders In An Economic Downturn? Would You Like A Copy of the Spreadsheet I Use for Tracking P2P Lenders? Disclaimers: * My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site. ** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations. Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences. Please read my full website Disclaimer before making investment decisions.
New to Peer to Peer Lending?
Ready to Get Started??
Who Are the Best Peer to Peer Lenders In An Economic Downturn?
Would You Like A Copy of the Spreadsheet I Use for Tracking P2P Lenders?
* My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. You should do your own research before investing any capital and not base investments solely on the opinions published on this site.
** Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews and monthly portfolio updates here on my website. I don’t receive commissions from all lenders and it has no effect on my ongoing opinions on lenders. Income on my investments and capital preservation are my main motivations.
Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Lending Returns page which lenders I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.
Please read my full website Disclaimer before making investment decisions.