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  • FIRST POST
    jamesd
    P2P: MoneyThing
    • #1
    • 2nd Aug 16, 7:29 PM
    P2P: MoneyThing 2nd Aug 16 at 7:29 PM
    This is a discussion for things specific to the MoneyThing peer to peer lending platform, to make it easier to find those as distinct from more general P2P discussions. More discussion is available at the P2P Independent Forum MoneyThing section.

    MoneyThing does a range of lending types that often avoid the ubiquitous property development loans seen in the P2P world at the moment but still does many of those. Interest rates are typically 12% but have ranged from 10-15%. All loans are secured on some sort of physical asset.

    The platform received full FCA approval in March 2017, replacing its former interim approval.

    As of 1 April 2017 there have been no defaults but eventually this is sure to change since it's a fact of life with lending.


    TOPICS: generic P2P, Ablrate, Lendy (formerly Saving Stream), MoneyThing.
    Last edited by jamesd; 16-04-2017 at 11:22 PM.
Page 3
    • elephantrosie
    • By elephantrosie 19th Apr 17, 12:28 AM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    i would like to start p2p investment via MT. i like the idea that the maximum loan can only be 50- 70% of the asset value. my fear though is how can i trust that MT is not over-valuing the asset?
    • elephantrosie
    • By elephantrosie 19th Apr 17, 1:06 AM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    any charges to withdraw money from the fund on MT?
    • masonic
    • By masonic 19th Apr 17, 6:09 AM
    • 9,126 Posts
    • 6,271 Thanks
    masonic
    i would like to start p2p investment via MT. i like the idea that the maximum loan can only be 50- 70% of the asset value. my fear though is how can i trust that MT is not over-valuing the asset?
    Originally posted by elephantrosie
    You have to look at the valuation and judge for yourself whether it is reasonable. There is often discussion over on the P2P independent forum about individual loans.
    • Trentenders
    • By Trentenders 19th Apr 17, 7:06 AM
    • 1,104 Posts
    • 672 Thanks
    Trentenders
    any charges to withdraw money from the fund on MT?
    Originally posted by elephantrosie
    No there isn't
    • nushnush
    • By nushnush 19th Apr 17, 10:11 AM
    • 75 Posts
    • 45 Thanks
    nushnush
    any charges to withdraw money from the fund on MT?
    Originally posted by elephantrosie
    no charges but you would need to sell your loans first, not usually a problem on MT, selling your loans is also free
    • agent69
    • By agent69 19th Apr 17, 6:58 PM
    • 180 Posts
    • 86 Thanks
    agent69
    i would like to start p2p investment via MT. i like the idea that the maximum loan can only be 50- 70% of the asset value. my fear though is how can i trust that MT is not over-valuing the asset?
    Originally posted by elephantrosie
    When it comes to valuing assets for P2P lending purposes it really is a case of buyer beware. Even if the asset was accurately valued on day one there is no guarantee that the same value will apply if the loan defaults a couple of years down the line. 70% LTV is definitely not an assurance that your money is safe. As typical examples (all from memory and none relating to MT);

    1. Property is my favoured asset class, provided you don't get over committed. Somerset office block purchased for £900k 3 years ago. Was subsequently valued at £2.9m resulting in a £2m loan. Now the sticky brown stuff has hit the fan the property is being marketed for about £1.3m.
    2. There's currently lending opportunities for a pub in Wales. The LTV isn't calculated on the pub value, but the profit the borrower says they will generate. Needless to say the projected profit level is more than double the current level.
    3. Commercial property in Leeds lost half of it's value following the 2009 financial crash
    4. Some loans are secured against stock held by the borrower. The only problem is that when times get hard the borrower can run the stock down, so unless regular checks are made it could be worth anything (Belfast furniture store).
    5. Then you get to the runt of the asset litter - the debtor book. A south coast plumber went bust and the debtor book was worthless. He lost his house and still only paid off half of the debt.
    So you pays your penny and you take your pick. If you are unable to do your own DD then diversify and invest with platforms that you think has the best recovery process. But remember that any form of asset is better than a crappy PG.
    • Thrugelmir
    • By Thrugelmir 19th Apr 17, 8:55 PM
    • 54,355 Posts
    • 47,172 Thanks
    Thrugelmir
    i would like to start p2p investment via MT. i like the idea that the maximum loan can only be 50- 70% of the asset value. my fear though is how can i trust that MT is not over-valuing the asset?
    Originally posted by elephantrosie
    MT won't be valuing the asset themselves. That'll be down to an expert in the relevant field.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • bigadaj
    • By bigadaj 19th Apr 17, 10:31 PM
    • 9,362 Posts
    • 5,982 Thanks
    bigadaj
    MT won't be valuing the asset themselves. That'll be down to an expert in the relevant field.
    Originally posted by Thrugelmir
    Generally it's a chartered surveyor that will do this for property but at least one other platform has a reputation for aggressive valuation to the point that it may exceed 100% of the loan in practice, or certainly in a forced sale.

    The fact that the p2p platform is a facilitator is a complication and probably means that as an individual lender one would have great difficulty in suing anyone whether that be the valuer or the platform for an inaccurate valuation if the recovery process progresses.

    Caveat emptor as ever.
    • Thrugelmir
    • By Thrugelmir 19th Apr 17, 10:48 PM
    • 54,355 Posts
    • 47,172 Thanks
    Thrugelmir
    Generally it's a chartered surveyor that will do this for property but at least one other platform has a reputation for aggressive valuation to the point that it may exceed 100% of the loan in practice, or certainly in a forced sale.
    Originally posted by bigadaj
    Then it's up to people to educate themselves before investing in the commercial property sector. Plenty of business people like to use other investors money rather than risk their own.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • bigadaj
    • By bigadaj 20th Apr 17, 6:30 PM
    • 9,362 Posts
    • 5,982 Thanks
    bigadaj
    Then it's up to people to educate themselves before investing in the commercial property sector. Plenty of business people like to use other investors money rather than risk their own.
    Originally posted by Thrugelmir
    Yup that's all part of the risk.

    People need to do their own due diligence and pay attention to platform credibility, you dint get high returns without significant risk.
    • elephantrosie
    • By elephantrosie 20th Apr 17, 7:39 PM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    how do i check if the borrower has another loan on MT?
    • masonic
    • By masonic 20th Apr 17, 8:51 PM
    • 9,126 Posts
    • 6,271 Thanks
    masonic
    how do i check if the borrower has another loan on MT?
    Originally posted by elephantrosie
    As a first approximation, the sequence of letters at the start of the loan reference corresponds to an individual borrower.
    • elephantrosie
    • By elephantrosie 21st Apr 17, 11:28 PM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    i guess there is no loan out next week as well?
    • masonic
    • By masonic 22nd Apr 17, 7:19 AM
    • 9,126 Posts
    • 6,271 Thanks
    masonic
    i guess there is no loan out next week as well?
    Originally posted by elephantrosie
    The Preston caravan park loan looks promising - here are the last two updates:
    [Update 14/04/2017] – Likely to be announced this Tuesday to go live on Wednesday.
    [Update 21/04/2017] – Our apologies for the delay - likely to drawdown early next week.

    The same is true for the Plymouth student apartments:
    [Update 14/04/2017] – Expected to be announced Tuesday or Wednesday to go live Wednesday or Thursday.
    [Update 21/04/2017] – Drawdown delayed - expected early next week.

    So hopefully we'll have two new loans next week. Unfortunately patience is a much needed virtue in the world of P2P.
    • taylornj
    • By taylornj 26th Apr 17, 4:10 PM
    • 152 Posts
    • 73 Thanks
    taylornj
    Any one interested in Money Thing, a new loan tomorrow means there is activity on the secondary market, as people get funds ready for tomorrow bid (note the time change for this one to 10am from the normal 4pm).

    All the loans I put up for sell had been sold prior to posting, so not trying to sell my own loans.
    Last edited by taylornj; 26-04-2017 at 4:58 PM. Reason: Disclosure
    • TheShape
    • By TheShape 26th Apr 17, 7:09 PM
    • 962 Posts
    • 704 Thanks
    TheShape
    I really wish that loan parts were automatically consolidated on Moneything. After a bit of FFF on the SM I end up with bits and pieces of loans. I've got 64 pieces of 43 loans. Been a good couple of days on the SM with the new loans coming through.
    Last edited by TheShape; 26-04-2017 at 10:37 PM. Reason: spelling
    • elephantrosie
    • By elephantrosie 26th Apr 17, 9:17 PM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    Any one interested in Money Thing, a new loan tomorrow means there is activity on the secondary market, as people get funds ready for tomorrow bid (note the time change for this one to 10am from the normal 4pm).

    All the loans I put up for sell had been sold prior to posting, so not trying to sell my own loans.
    Originally posted by taylornj
    May I ask why do you want to sell your loans?
    • taylornj
    • By taylornj 27th Apr 17, 12:35 AM
    • 152 Posts
    • 73 Thanks
    taylornj
    May I ask why do you want to sell your loans?
    Originally posted by elephantrosie
    As a new loan is available, I'm at the limit of the amount I want to hold at Money Thing. That means replacing loans with a short term coming to an end with the new loan with a longer term at the same rate in this case.
    • elephantrosie
    • By elephantrosie 27th Apr 17, 9:29 AM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    does 12% interest rate for an 18 month loan term mean 12% per year or 12% in 18 months?
    • AlanP
    • By AlanP 27th Apr 17, 1:01 PM
    • 810 Posts
    • 558 Thanks
    AlanP
    does 12% interest rate for an 18 month loan term mean 12% per year or 12% in 18 months?
    Originally posted by elephantrosie
    Per year, so pays out 1% per month in interest payments.
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