Property News · June 3, 2017

Peer-to-peer lending promised 6%, but I’ve been left red-faced and in the red


James Patterson hoped his £1,000 investment in Funding Circle would reap returns 10 times more than his bank offered. But 18 months on, he’s losing moneyWhen James Patterson invested £1,000 in the peer-to-peer (P2P) lender Funding Circle back in 2015, his hope was that his money would grow a bit faster than the pitiful rates of interest offered by his bank. At the time, the relatively new lender was promising returns of 5-6% a year – 10 times more than his bank.However, almost a year and a half on, his investment is now worth just £988 – a loss of £12. It’s because one of the firms that 10% of his money was lent to defaulted, leaving his account £128 in the red – a sum that his other investments at the platform have struggled to make up. Continue reading…

Source : theguardian.com
Read more…Peer-to-peer lending promised 6%, but I’ve been left red-faced and in the red

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