Peer-to-peer lending sites: MSE guide discussion

masonic

e1337prodigy wrote: »

Anyone able to shed light on why Lendy is to be avoided?

Start reading from this post onwards to see the situation unfold: https://forums.moneysavingexpert.com/discussion/comment/72048084#Comment_72048084

In case you are feeling daunted by the challenge of reading it through, here are some excerpts to whet your appetite...

"A loan is being refinanced from MoneyThing to SavingStream so we can compare the two. MoneyThing: Loan value £2.2 million (5 parts) vs asset value of £4.15 million and LTV for all combined 60.1%... SavingStream: Loan value £3.4 million. Gross development value £16.8 million. LT GDV 20%."

"[Lendy] Said a borrower was an individual when it was really a limited liability company part owned by them [Lendy] and gave a misleading valuation far above the purchase price and planning permission which didn't exist. Now it's defaulted even getting the purchase price is looking hard."

"Valuation on residential property basis when the planning inspector apparently said that use must not be allowed to lapse into residential and a high court appeal against this seems to have been abandoned."

"There are at least half a dozen loans I am aware of that have been promoted with inaccurate information. I expect there are more that I am unaware of. Since I cannot trust the information provided by SS [now Lendy] is clear and not misleading, I cannot invest with them and liquidated all of my existing loans a few weeks ago."

"...the developer breached the terms of the planning permission and was made to undo the unauthorised work... [Lendy] were tipped off by a P2P independent forum member... is currently lending the borrower more money to fix the unauthorised work - about another £300k."

"...the provision fund has just paid out about £400k to compensate investors in PBL020 when the security valued at £2.4m sold for £1.3m and failed to cover the £1.7m loan... and this was the loan jamesd mentioned where they [Lendy] had 10% ownership of the company borrowing the money... So much for 30% LTV buffer! The actual LTV was not 70% but 130%. No legal action has been taken against the surveyor because they were fed incorrect information by the platform."

"It's straightforward to verify whether the director of the company you are lending to has been banned from acting as a director as well."

"I see the security for another Lendy defaulted loan has been put on the market. RICS valuation £2,870,000, loan value £2,000,000, on the market for £1,250,000. There seems to be a pattern emerging."

"the steel-framed office block valued at £2,870,000, on the market for £1,250,000, but purchased two and a half years ago for £875,000, has not received any offers according to the latest update."

richardjmcdougall

Always worry these skin in the game p2p promises, its fine if they have the money to pay l always feel what if a economic slowdown hit them hard and there is no skin to pay the 5% or 20%.
That said, l do hope l am 100% wrong on this !!
Asset Capital for me, profitable p2p larger, better underwriting team etc low LTV security on the loans, provision fund as well as loans spread surely makes it the safer p2p. Pays between 5.50 /6.25% not the highest p2p, but safety is much more important than an extra 1% orso in my eyes.
Lending works protection insurance is great idea, 6% 5 year l have a healthy investment with them only concern is they all unsecured loans, in the event of brexit downturn bit of a concern.
As always, spread investment in p2ps to lower your risks. Don't chase higher much risky rates is the best tip l think.

Fatbritabroad

Just and FYI assetz capital are now doing an intro bonus of 50 on 1000. If anyone wants a referral code pm me for details. I also use ratesetter, Kufflink lending works too.

Fatbritabroad

Apologies just realised this wasn't supposed to be posted here. I can't remove feel free to delete

member03030

The Assetz referral page in the referral forum has presumably been deleted, i could of sworn it was there last friday...


Would anyone know why ? (unless i imagined it)

Fatbritabroad

No it was there

bxboards

Looking like some fairly major defaults looming on Archover / Assetz Capital.

I noticed the borrowing company was constantly coming back for more loans on Archover to re-pay previous loans (bascially kicking the can down the road), and it looks like Assetz lost patience and put in administrators on Friday. Looks to be around 3.5m+. I was never in these, but had it on my 'one to watch, going down the pan' list for the last year.

The company is in a leased office, and there seems to be no security, with a personal guarantee of 50k seeming to be the own 'security', the debenture look pretty worthless to my eyes ... could be messy.

not really sure how a company like that ends up with a 7 digit credit line!

member03030

I'm looking to dump a couple of K into Assetz,


Any concerns about assetz ? see there is a poss 2% bonus at the moment as well ..No idea what happened to the referral thread either..



Thanks

bxboards

The Assetz offer looks very temping, I took some money out of a couple of my lower rate P2P sites (Octopus / Landbay) to move there.

I think MSE's owner MoneySuperMarket sometimes offers deals so they probably see the thread as competition. As a long standing Assetz member, I'm happy to refer anyone.

Regarding withdrawals from Octopus Choice and Landbay, withdrawals from both sites were practically instant, there was no wait for a secondary market buyer, so the money was in Assetz within 24 hours of withdrawing. I'll likely put some back into those two later, as I'm a little top heavy in Assetz now.

BeerMoney

I've PM'd my code and posted my code on the Referrers board, i'll see if it remains....