Peer-to-peer lending sites: MSE guide discussion

Psyduck1980

AdrianC wrote: »

Maybe they just weren't very temptingly priced for the return?

(Can you still do discounts on second-hand loan part sales? Ages since I got out of FC...)

No, it's all done via "autobid".

[Deleted User]

RE: kuflink - I wasn’t charged a fee for selling on secondary market over the weekend.

Email said £0 and I presumed that was due to rounding, but the dashboard shows £0.00 with my full capital plus accumulated interest.

Whether fees are currently off (terns did refer to sometimes lower fees, but weren't specific!) or on a discretionary basis I’m not sure. My sales were minimal (<£500 holding). Hasn’t appeared in my bank account yet mind, but if they nick a few quid off me before settling, after showing zero, just for the principle of it that’s not going to go down well at all in terms of reputation!

tony.blunt

I invested in Folk to Folk, a P2P lender based in Cornwall, primarily lending to borrowers in the South West. F2F secure your " investment " against property which is fully owned and in the control of the borrower, F2F use a ratio of 60% loan to value of the asset. The property has charges set against it at the land registry and therefore can only be sold with the lenders permission. It was a good investment for us and over a period of 7 years returned 7% without any issues. We chose the "easy in easy out" route and accessed our funds in good time. Returns are down to 6% now but still a good bet, especially with the certainty of funds being accessible in the scenario of a distressed sale of the borrowers asset. Occasionally it is possible to obtain a rate of 8%+ if the loan is required urgently and one has the funds available. S we liked it but their administration paperwork, ie statements and random comm's left a lot to be desired. We exited 18months ago, but still have associates with trouble free investments lodged with them.

jrph

i have a large loan to a property developer on an A+ rating. They advise me I am to lose 40%.
Is this right on a top rated loan?

mikb

"It is not just a top rated loan, this is a Funding Circle top rated loan."

The phrase "highly experienced property team" (who by now must be in other employment, working well with brooms and mops) causes hollow laughter over at the P2P Independent forum due to the exceptional quality of these secured loans.

You can tell that FC's plunge into the property market went well -- they chose to stop doing those sorts of loans. You work out why!

Is a 40% loss possible? Yes. The recovery team will do what they can, it may take ages, but in some cases the security that supposedly underwrote the loan was not as valuable as you thought. This has happened on other platforms too, where RICS qualified valuations have magically shrunk the moment things went wrong.

Hopefully you were diversified enough for this not to hurt too much.

takesyourchances

Recieved my FCA complaints reply today in response to my complaint regarding Collateral. I guess it will have been the same standard reply each other investor got who has been contacting them. Another one logged anyway with the FCA.

masonic

jrph wrote: »

i have a large loan to a property developer on an A+ rating. They advise me I am to lose 40%.
Is this right on a top rated loan?

Of course, property development loans are among the highest risk loans available, because a building site is worth a lot less than a completed development and is unlikely to attract much interest when sold. Losses of much more than 40% are well within the realms of possibility.

fun4everyone

I have had a 97.5% capital loss on a property loan on Funding Secure. That's after the site got sold. "Current value, £800,000" was what the loan said. I think they distributed roughly £12,500 to investors after the sale.

justme111

tony.blunt wrote: »

I invested in Folk to Folk, a P2P lender based in Cornwall, primarily lending to borrowers in the South West. F2F secure your " investment " against property which is fully owned and in the control of the borrower, F2F use a ratio of 60% loan to value of the asset. The property has charges set against it at the land registry and therefore can only be sold with the lenders permission. It was a good investment for us and over a period of 7 years returned 7% without any issues. We chose the "easy in easy out" route and accessed our funds in good time. Returns are down to 6% now but still a good bet, especially with the certainty of funds being accessible in the scenario of a distressed sale of the borrowers asset. Occasionally it is possible to obtain a rate of 8%+ if the loan is required urgently and one has the funds available. S we liked it but their administration paperwork, ie statements and random comm's left a lot to be desired. We exited 18months ago, but still have associates with trouble free investments lodged with them.

Well done for exiting in time. It all works until it does not ..

Alexland

mikb wrote: »

This has happened on other platforms too, where RICS qualified valuations have magically shrunk the moment things went wrong.

One of my friends ran short of money when doing substantial renovations to his property so applied for further borrowing. The lender sent a surveyor who said that because there was currently no kitchen the lender would be unable to advance further money. The surveyor suggested the best way forward was for them both to agree to lie to the lender... Which they did.

Alex