We love hearing more about our lenders, their stories and what attracted them to invest in peer-to-peer lending. In this Q&A session we caught up with Michael and Susannah. We asked them about their experiences with peer-to-peer lending and how important investments are to them.
What first attracted you to invest in peer-to-peer lending?
Having sold our business in 2015, we became very frustrated with the low levels of interest available from banks, ISA’s, etc. After researching over a few months and understanding the risks, we became confident that P2P lending was a route for some of our funds which we were comfortable with.
How long have you been investing in peer-to-peer?
Only since November 2015.
How important are investments to you in the current stage of your life?
Investments are very important to us at this stage of life. As long as our investments make a good amount of interest/growth, we are able to give up work at a very early age (just 45 and 34).
What financial goals are you looking to achieve from your investment?
We are looking to achieve an average rate of return of at least 3.5% on all our investments. This is so that the money received from the sale of our business, makes enough money to live on through to our old age. We have spread our investments in a variety of products, such as Bank Savings, ISA’s, SIPPs, P2P Lending, Commercial Property, Shares and Managed Funds.
How do you find peer–to-peer investing compared to more traditional savings?
Peer to Peer lending is a good alternative to bank savings if you are happy for a slightly higher risk if a borrower defaults. The returns were at least twice the amount of the best instant access bank rate we could find. Some P2P lenders products guarantee your rate of return at a lower rate still 2x the best bank rates, to reduce the risk. We found comfort in this type of product.
When choosing a peer-to-peer platform to lend on, what were the important things you looked for?
We looked for a P2P platform which seemed established, had good reviews, offered rates of return above 3%, was easy to invest in and withdraw and was simple to use online.
Where did you hear about us and why did you choose to invest with Landbay?
Google search and then looked at reviews. My background is in property, so rather than investing in a residential buy-to-let, we felt this was a way of investing a smaller amount in that sector.
Are you considering opening an IFISA with Landbay?
Possibly, not decided yet. We currently have a cash ISA giving 2.48%, so may leave that as although a lower rate, it does mean our money is spread across a variety of risks.
Would you recommend Landbay to a friend, family member or colleague? If yes, have you done so already?
Yes, and yes.
Do you have any additional feedback regarding your experience with Landbay?
Yes, since investing in Landbay, the rate has been increased to 4% on the tracker product which we have invested in, which is great. Also, we read recently that Landbay has received investment from Zoopla, which adds confidence to our decision to invest in Landbay P2P lending