With the ratesetter 3 year market now gone and the 5 year market difficult to shift anything above 5.5% (not what I had expected for the 5 year market post christmas), out of interest where are people going for 3 to 5 year lending instead?
I have reduced my quite large RS investment by about 75% over the last 12-18months mainly by withdrawing interest and repayments and now only invest in the Rolling market until I need the money (typically kids education) or find somewhere else to invest it. Likewise my Zopa repayments all get withdrawn and get spent or invested elsewhere.
I have been slowly adding to LendingWorks for over 2 years now and really like the platform. I feel comfortable with their growth and risk profile, certainly feels more conservative than RS or Zopa have been in recent years. Have got a similar investment with Landbay, lower returns but asset backed and risk profile also low.
Also I have built a highly diversified, secured, low LTV portfolio (+350 loans, average <50% LTV) with mainly AC and a few other sites that I feel very comfortable with. This is aimed at lower capital-loss risk (more focus on underlying assets than headline return), currently returns around 8% with almost no losses or defaults/suspensions in 3 years. However I avoided almost all of the 12%+ loans/sites as the amount of DD required to be comfortable with these loans is simply not worth it when investing a few hundred/thousands per loan.
It takes daily management to monitor this kind of portfolio and IMO unless you have real-world experience in loan origination/property valuation etc. you need to focus on those sites that do good DD and provide proper loan details, management and updates, overall AC currently seem to set the standard here. If you dont want to do the hard yards of managing your own portfolio then ACs automated GBBA2 account is not a bad choice in terms of ease of use and risk/return, with 6.25%, asset backed, PF protected and, soon to be released, fully automated diversification algorithm there is probably not anything else like it in P2P right now. Their site can seem a bit quirky but it is easy once you get used to it and there are some planned UI improvements to improve things on the way fairly soon I believe. Definately worth a look or giving their CS a call to discuss.
I have found myself moving more money into WiseAlpha. I like the idea of lending to larger more stable companies and still getting better returns than with Ratesetter. I get an average of 6.1 % after fees and I am avoiding the companies that feel very risky.
Been doing this for about a year and it's all going well so far. Your milage may very though