Loanpad P2P - Reviews, experiences, info or updates, post them here. I'm having a dabble.

Sea_Shell

Albermarle said:

Sea_Shell said:

Loanpad have reached 4500 lenders today.   With an average investment of just over £17,000

They have 167 live loans

They now have 10 lending partners

They currently have ~£2.65m of liquidity, which equates to ~3.6%

Are the returns any better than a safe savings account now? This is what has caused Assetz Capital to close down their retail lending. Customers had decided getting 4 or 5% with a risk, was just not worth it anymore.

Personally we have £10k with them.     Currently at 4.8%, rising to 4.9% on 1/1/23 and 5% on 1/2/23

It's a bit of a "dabble" really.   Half way between being invested in S&S and being in cash.

We recently locked some other cash away at 4.5% (1 year), along with other rolling 1 year fixes, due to start maturing from April onwards, and are filling a few Reg Savers each month.

So we have another £33k outside Loanpad, with approx £10k in true easy access cash.

Sea_Shell

In light of the impending interest rate rises on the ISA version.

I'm going to let my weekly £1000 pre-orders cash out and then move across to the ISA.

I should get £6000 moved over before the tax year end.

I have no other need for my ISA allowance this year.

Once in the ISA, I'll put it on notice again.

Sea_Shell

Sea_Shell said:

Loanpad have reached 4500 lenders today.   With an average investment of just over £17,000

They have 167 live loans

They now have 10 lending partners

They currently have ~£2.65m of liquidity, which equates to ~3.6%

This was as at December 22


They now appear to have £900k of liquidity which is just ~1.2%

They have 12 lending partners

147 live loans

4772 lenders, with an average investment of £16,300


What do you make of this @Aceace

Albermarle

All I know is that retail lending to these platforms has dried up, as there is no logic taking the risk, when you can get similar interest rates in safe savings accounts.
A similar ( not identical) platform - Assetz capital- has given up due to this and will concentrate only on institutional lending.
The retail lenders money is currently frozen, and will only get their money back as the platform is slowly run down over three or more years.

Sea_Shell

Our current exposure is less than 2% of our overall savings and investment portfolio.

Albermarle

Sea_Shell said:

Our current exposure is less than 2% of our overall savings and investment portfolio.

Mine was 3% but is now 1.5% after a few tactical withdrawals a couple of years ago. Most of what is left is a bit stuck in 3 different 'frozen' platforms, but I am still getting 'interest' and repayments, and therefore the amount is slowly reducing. I do  bank transfers to my current account of a few hundred Pounds every 3 months or so, until eventually one day it should all be mainly clear. 

Aceace

Sea_Shell said:

Sea_Shell said:

Loanpad have reached 4500 lenders today.   With an average investment of just over £17,000

They have 167 live loans

They now have 10 lending partners

They currently have ~£2.65m of liquidity, which equates to ~3.6%

This was as at December 22


They now appear to have £900k of liquidity which is just ~1.2%

They have 12 lending partners

147 live loans

4772 lenders, with an average investment of £16,300


What do you make of this @Aceace

Hi @Sea_Shell, I've given up posting on this forum, partly due to the almost complete lack of interest in P2P here, but the final straw was when someone objected to one of my posts about a loan on AxiaFunder and the mods agreed and removed the post. The objection was because I held shares in AF (which I had openly declared), which seemed to me to be ridiculous since there are countless posts from people who own shares in listed companies and funds that get no such rebuke. My post was a genuine attempt to illicit discussion on a much ignored, but IMO, a very worthwhile investment option. I just couldn't be bothered to fight the trolls. So I now reserve my comments for the more specialised P2pindependentforum.

However, since you tagged me directly...

Firstly, you seem to have a typo in your post. The number of active loans on Loanpad is currently 174.

Things had become a little stagnant at loanpad between your above two posts because they were a little slow to increase their rates compared to the rapid rise in FSCS protected rates for accounts with instant access and 60 day notice. So, investors were less inclined to add funds to Loanpad given the reduction in the risk premium.

Given that Loanpad rates increased to 4.2% and 5.2% today, and the fact that they will increase again to 4.4% and 5.4% on 1st May (4.6% and 5.6% in the ISA), and the likelihood that we are at or near the top of FSCS protected rates, I would expect that investments at loanpad will soon pickup again. 

Total investments there have fluctuated a little, but there has certainly been no stampede for the door. In fact, I think that today might be the first time that total investments on the platform have topped £78m, so may already be starting to pick up. 

As for the reduction in liquidity, yes it's at the lower end of where it tends to fluctuate, but a large loan of £1.5m was started yesterday. Don't forget that they have never failed to pay a requested withdrawal, even during the covid pullback, and that they do have extra liquidity providers should the platform liquidity hit zero. 

I think that all P2P has also suffered to some extent buy the FSCS's ridiculous "one size fits all" warning where they are forced to warn investors that they may lose ALL of their investment. This clearly is absolute nonsense in Loanpad's case. It would require the security all of their 174 loans (none of which has an LTV above 50%) to reduce in value to below the cost of recovery and remain there for some time, I.e. for a property price crash of something like 95%!

IMO, Loanpad is still the safest and easiest investment you can make with a 5.6% return (5.76% if interest is compounded in the 60 day ISA account from May 1st). They have scope in their current margins to raise rates higher, but I have no idea if they intend to do so. I expect them to expand quickly again soon, once FSCS rates decline. 

I hope you can read this before it gets removed by the mods, as I have a small equity investment with Loanpad. I wish you the best of luck with your investments. 

Sea_Shell

Thanks Ace.   Nice to get your take on things.

Oops, yes it was a typo.

Just looked up that new loan.  I know exactly where that is 😉


Sorry to hear you've been "cancelled" before.

Rudyson

Sea_Shell said:

Thanks Ace.   Nice to get your take on things.



Sorry to hear you've been "cancelled" before.

Yes, a great shame. AceAce is very knowledgeable and extremely helpful. 

brucefan_2

@Aceace

Thankyou for your measured and balanced update on how things are progressing with Loanpad.

I look forward to your quarterly update at the other place you post - they always make  interesting reading!