Midnight Hour Approaching For P2P Auction Bidders

Midnight Moon

Today, we offer a technical tip.

One of our A-rated loan offerings is closing tomorrow. GH3 is a financial services company, seeking over £100,000. The offer is a “classic” – in that it is an auction, where registered lenders make offers of credit at different rates. At the time of writing, the offer is just under 90 per cent funded, and the gross indicative yield (the aggregated average of the credit offers before Money&Co. takes its 1 per cent fee) is 10.5 per cent.

The tip is all about auction technique. See this from our Knowledge Hub:

Auction Hammer

  • If you’re involved in an auction process, watch that process carefully. There may be lots of bids at the end of the auction period, and the more expensive money gets driven out at the end as the borrower accepts the lowest bids.


We can’t say with absolute certainty that the “gaming” bids (the very high ones) will get knocked out. But previous experience shows there will be a flurry of activity as the auction closes, and competition means that lower bids are made, and they drive out the expensive offers. As we say above, do watch the process carefully.


The ISA allowance for 2017/18 is increased from last tax year to £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here. This return has been typical of our recent stream of A+ rated property-backed loans.

P2P & Risk

If you haven’t made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment.


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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.