1st half 2017
The results for the 1st half of 2017 investing on the Collateral UK platform are as follows –
|No. Live loan parts||19|
|No. Loan repayments overdue||0|
The highest interest rate on a loan part I have on this platform is 15% the lowest is 12% so I have averaged the rates across all the loan parts to arrive at an expected ROI of 13.6%. The actual ROI is 12.72%, which accounting for timing discrepancies with deposits and reinvestments associated with a manual investment strategy, it’s pretty close to what was expected. A plus with this platform is there is no minimum investment and there has always been investment opportunities available so as soon as a balance has been released, meaning you can maximise your return. Occasionally cash back is also offered on specific loans in the primary round adding further to your return, but you have to be quick, a passive investor (logs in less than every 2 weeks) is unlikely to catch them. For the passive investor you do have the option to auto reinvest, personally I have preferred a manual strategy so far.
I am yet to experience any difficulties or defaults with invested loan parts, in fact many of the loans have already been repaid and the funds have since been reinvested in to new loan parts. I have noticed a few defaults/over due loans on the platform so it does happen, it just seems i’ve been fortunate so far. The platform itself is very easy to use, if basic. I’ve not needed to use the secondary market at this point so i couldn’t comment on that aspect.
In conclusion, i’m very impressed so far with Collateral UK considering it’s one of the lesser know platforms, looking forward to what the second half of 2017 brings.