P2P: MoneyThing

TheShape

keyboardworrier wrote: »

Of course there is no certainty, but my favoured platform at the moment (Kuflink) takes the first 20% of any losses if they occur and I think taking an interest rate hit for that kind of security is worth it. Also Assetz Capital have the hands off account paying 7% with a provision fund.

I'll think about it some more but I have a feeling I will start to diversify away from the riskier end of P2P lending

Doesn't the 20% first loss holding with Kuflink increase the chance of platform failure?

I think the FCA wouldn't fully authorise a firm that invested their own capital in their loan offerings for this reason.

keyboardworrier

TheShape wrote: »

Doesn't the 20% first loss holding with Kuflink increase the chance of platform failure?

I think the FCA wouldn't fully authorise a firm that invested their own capital in their loan offerings for this reason.

They are fully authorised. I am not sure if it increases the chance of platform failure, I would think that it increases the amount of care they put into doing DD on the loans they put onto the platform though.

agent69

takesyourchances wrote: »

but will continue to invest in new loans,

Chance would be a fine thing

TheShape

keyboardworrier wrote: »

They are fully authorised. I am not sure if it increases the chance of platform failure, I would think that it increases the amount of care they put into doing DD on the loans they put onto the platform though.

I see that they are. Moneything had to stop pre-funding loans to get full FCA authorisation. I made an assumption re platform funding of loans that wasn't correct. I'm not sure whether there is some limit to the amount of exposure to the loan book/each loan that is acceptable.

You'd certainly hope so.

TheShape

Back on topic:

Having built up my investment in MoneyThing I am now slowly reducing my holding, partly due to loans repaying and a limited number of new loans becoming available.

The only loan I have invested a little extra in is the Hotel which looks like its progressing well but even that is being funded by reducing other loan holdings rather than new funds.

keyboardworrier

TheShape wrote: »

I see that they are. Moneything had to stop pre-funding loans to get full FCA authorisation. I made an assumption re platform funding of loans that wasn't correct. I'm not sure whether there is some limit to the amount of exposure to the loan book/each loan that is acceptable.

You'd certainly hope so.

Yes, I thought it was strange that some platforms weren't allowed to do it whilst others (The two that I am aware of are Kuflink and Octopus Choice) are allowed.

Flobberchops

TheShape wrote: »

Having built up my investment in MoneyThing I am now slowly reducing my holding, partly due to loans repaying and a limited number of new loans becoming available.

Ditto. MT is a bit of a wilderness at the moment, which is a shame.

msallen

I agree that there is a dearth of decent new loans on MT at present, so I have decided to exit the platform for now, with a view to going back into it when they offer an IFISA (as long as there is a decent loan pipeline again by then).

I didn't think it was worth the effort of monitoring the platform for the few decent loans I had, so I've moved the cash over the Ablrate for now (where it is in an IFISA too).

I just have a small amount left in the defaulted Prestbury and Birkenhead 'A' loans, both of which I'm confident will recover all the capital. Interest is a lot less certain though, especially on Birkenhead.

bigadaj

keyboardworrier wrote: »

Yes, I thought it was strange that some platforms weren't allowed to do it whilst others (The two that I am aware of are Kuflink and Octopus Choice) are allowed.

The FCA have not been happy with direct platform involvement in several cases, in most cases they have removed the issue around the platform lending and then funding such that the platform acts as an agent or intermediary.

Provision funds are a tricky area, it's nice to think there's additional security but their existence and how robust they are have been open to question, Lendy being a prime example.

I think the platforms are finding it difficult now, most seem to go through a honeymoon period starting with pawn and low value items, grow in scale which generally means property and then to maintain deal flow, and commission, revenue no doubt, start to take on loans they shouldn't.

I have been happy with the three platforms I've been using for the last two years or so but all have had loans recently that I've ducked because if questions over security or valuation.

Moneything have a new bollington loan tomorrow and I'm undecided, same borrower I believe as the soft default in Plymouth, though I have no money in the latter.

takesyourchances

TheShape wrote: »

Back on topic:

Having built up my investment in MoneyThing I am now slowly reducing my holding, partly due to loans repaying and a limited number of new loans becoming available.

The only loan I have invested a little extra in is the Hotel which looks like its progressing well but even that is being funded by reducing other loan holdings rather than new funds.

I have withdrawn some repayments from MT when nothing has been happening with new loans, I put some into Ablrate loans and when things have been quiet in both I put the funds into my S&S ISA recently too.

I have about £450 now in defaults in MT, so hopefully some or all of this will recover or it will certainly dent returns with this platform. I was starting to think what others have been saying has the best of the loans been and gone, it seems to be one problem after the next.

I will look at what new loans appear on MT, but I am not adding anything else to any related loans I have at the moment. Lets see what course these defaults take. I have more loans due to repay, so I will see what comes up or reduce.