P2P: Saving Stream (AKA SavingStream)

bigadaj

economic wrote: »

to me if you are a higher rate tax payer or more, it just does not make sense to invest in Lendy. you get taxed 40% so that leaves you maximum 7.2%. is that worth the risk?

yes you can put it in a pension, but since pension is for the long term, why not just stick with stocks and bonds - keep it simple. until they come out with an isa, i think its best to avoid especially as an additional rate tax payer.

Depends on your view.

I don't think anyone is recommending Lendy on this thread, the debate seems to have widened to p2p in general.

In terms of p2p then unsecured lending is questionable as well as that paying low interest rates.

Bonds generally offer terrible value currently, either zero or negative returns or a far higher risk profile than you'd be traditionally be looking for in your bond allocation or a combination of these.

An additional rate taxpayer may think this unattractive but for a higher rate taxpayer then it can definitely form part of a portfolio. Many will be investing into a pension for the higher rate relief, which might reduce the tax impact from unwrapped p2p, and any defaults can of course be written off against interest which reduces the risk somewhat.

masonic

Back on topic, 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.

Biggles

bigadaj wrote: »

I don't think anyone is recommending Lendy on this thread, the debate seems to have widened to p2p in general.

That's Sod's Law, isn't it? When it was the main general P2P thread, it began to focus on SavingStream (as it then was). So the thread was renamed. Now it's really specifically a Lendy thread, as you say, the debate has widened again to P2P in general. You can't win!

economic

masonic wrote: »

Back on topic, 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.

Which loan? What's the id?

JohnRo

PBL064 Tenanted offices, 2 units, Highbridge, Somerset.

It's not difficult to identify, although I notice SS have removed the image from the details page.

http://www.zoopla.co.uk/for-sale/commercial/details/43511221?search_identifier=d657ba491e0d01b89159f6ec1dfc5343#VMFcew3R6B6Y64om.97

[B]Asset Details        % Book       Asset value        Loan Value    % pa     LTV[/B]
  
In Default            5.12%    £13,490,000.00     £9,071,500.00   12.00%  67.25%

Interest Accruing     8.34%    £22,780,000.00    £14,777,000.00   12.00%  64.87%

Interest Serviced     3.63%    £12,755,000.00     £6,426,107.00   12.00%  50.38%

Interest on Account  82.92%   £365,332,433.00   £139,392,121.00   11.64%  40.23%

Loan Book Total     100.00%   £414,357,433.00   £177,247,547.00   11.70%  42.78%

Biggles

JohnRo wrote: »

PBL064 Tenanted offices, 2 units, Highbridge, Somerset.

Yes, they've been marketing that, and showing the interest status as 'IA', for a while now.

JohnRo

PBL064 is still 12 days away from being classed as an official default by Lendy according to their 180 day rule so the IA classification is to be expected.

jamesd

economic wrote: »

to me if you are a higher rate tax payer or more, it just does not make sense to invest in Lendy. you get taxed 40% so that leaves you maximum 7.2%. is that worth the risk?

The main UK stock market average return has been about 5% plus inflation, before charges and tax, so that's still potentially ahead if defaults aren't excessive. Unlike shares, losses to defaults can be deducted from taxable income. The first £1,000 of interest is tax free at basic rate, £500 at higher, covered by the Personal Savings Allowance, and also covered by the starting rate for savings for those with sufficiently little other income. I don't think that Lendy is a wise move but there's other P2P around paying 12% or more.

Biggles wrote: »

That's Sod's Law, isn't it? When it was the main general P2P thread, it began to focus on SavingStream (as it then was). So the thread was renamed. Now it's really specifically a Lendy thread, as you say, the debate has widened again to P2P in general. You can't win!

I started this topic to be specific to Lendy (Saving Stream) and it hasn't been renamed. Some more general discussion in them all is normal. I've just added these links to the first post in the platform-specific topics to help with navigation, I'll probably start some more topics for other platforms soon.

TOPICS: generic P2P, Ablrate, Lendy (formerly Saving Stream), MoneyThing.

mr._prude

JohnRo wrote: »

[B]Asset Details        % Book       Asset value        Loan Value    % pa     LTV[/B]
  
In Default            5.12%    £13,490,000.00     £9,071,500.00   12.00%  67.25%

Interest Accruing     8.34%    £22,780,000.00    £14,777,000.00   12.00%  64.87%

Interest Serviced     3.63%    £12,755,000.00     £6,426,107.00   12.00%  50.38%

Interest on Account  82.92%   £365,332,433.00   £139,392,121.00   11.64%  40.23%

Loan Book Total     100.00%   £414,357,433.00   £177,247,547.00   11.70%  42.78%

Thats an improvement from 21% to 17% on troubled loans

bigadaj

mr._prude wrote: »

Thats an improvement from 21% to 17% on troubled loans

On one level but you'd need to do more analysis than that.

Depending on whether you are defending or criticising them then a range of other criteria could be assessed including number of loans, time in default, whatever that actually means given the platforms interpretation, value of loans or security, actual value of security given the apparently questionable valuation reports, consideration of the provision fund, etc