Peer-to-peer lending sites: MSE guide discussion
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Does anyone know whats happening to the Prestbury defaulted loan? I exited MT but have some money stuck with this defaulted loan. Would be nice to have some closure on it so i can get back some of my money.0
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December - administrator accepted sale offer, sufficient to repay in full (including interest and costs). Completion expected Jan.
End Jan - due diligence ongoing
End Feb - sale still in progress
Early Mar - sale still in progress, update when there's news.0 -
A sad general update by MoneyThing today where they are in effect saying that they are going to continue to lie by omission to lenders about the actual state and risk of loans.
Most prominent, perhaps, is them saying that we won't normally be told that a monthly payment hasn't been made until 14 days after it was due. So if you only want to buy a loan that made its last payment you have that extra wait time. What they should be doing is declaring it immediately and perhaps freezing in place or adding an extra caution to buyers on the secondary market so you don't buy while the loan state is being misrepresented by MoneyThing.
Accurate descriptions to buyers shouldn't be regarded as optional.
I was not impressed by the update myself James from MT. I don't agree with the 14 days either after late payment telling investors, as you said people could be buying into these loans on the secondary market during a period of late payment.
My gut feeling has been to run MT down and get out as best as possible, I have lost faith in them, nothing has been recovered yet from the property defaults so far and with some of them, the development loans it seems to me they have their work cut out and the more easier defaults out of them, like Prestbury nothing real solid has come yet.
I have some loans left that are non property with MT, part of me is tempted to sell them now to reduce off the platform and put the funds elsewhere, the defaults will have to wait and see and other funds are in a massive sales queue.
What I am prepared to keep in P2P I am simplifying dispite some lower rates with say Lending Works, but factor in potential losses from MT defaults and maybe Collateral and less time involved and headaches, I am opting for more of this style with more protection after the recent problems.
Also for MT loans being interest only until repayment for the risk and defaults now and after Collateral, Ablrate offering a lot of amortising loans is another strong factor now.
I will think over selling out of some other MT loans now to reduce the platform as these will sell quick unlike the property development loans stuck in the sales queue.
The last 12 months has been a real game changer, I have rid several platforms now and others I am not interested in and now narrowing the last throw of the dice down to a few for me in P2P.0 -
December - administrator accepted sale offer, sufficient to repay in full (including interest and costs). Completion expected Jan.
End Jan - due diligence ongoing
End Feb - sale still in progress
Early Mar - sale still in progress, update when there's news.
Update when there's news basically means "sod off investors and stop wasting our time".0 -
takesyourchances wrote: »I was not impressed by the update myself James from MT. I don't agree with the 14 days either after late payment telling investors, as you said people could be buying into these loans on the secondary market during a period of late payment.
My gut feeling has been to run MT down and get out as best as possible, I have lost faith in them, nothing has been recovered yet from the property defaults so far and with some of them, the development loans it seems to me they have their work cut out and the more easier defaults out of them, like Prestbury nothing real solid has come yet.
I have some loans left that are non property with MT, part of me is tempted to sell them now to reduce off the platform and put the funds elsewhere, the defaults will have to wait and see and other funds are in a massive sales queue.
What I am prepared to keep in P2P I am simplifying dispite some lower rates with say Lending Works, but factor in potential losses from MT defaults and maybe Collateral and less time involved and headaches, I am opting for more of this style with more protection after the recent problems.
Also for MT loans being interest only until repayment for the risk and defaults now and after Collateral, Ablrate offering a lot of amortising loans is another strong factor now.
I will think over selling out of some other MT loans now to reduce the platform as these will sell quick unlike the property development loans stuck in the sales queue.
The last 12 months has been a real game changer, I have rid several platforms now and others I am not interested in and now narrowing the last throw of the dice down to a few for me in P2P.
I have got my original investment back in MT (which includes nominal plus interest) and a bit of interest so I'm safe from a capital loss perspective. Just waiting to recover the defaulted loan so that it was all worth it with MT.0 -
All in all P2P has been a not so worth it experience for me except for two platforms: Abl and lending works.
Haven't made losses although still waiting for lendy to actually do some work, but on the whole given the time and effort and risk just simply not worth it at all.0 -
By comparison, since my first deposit into FC nearly four years ago and across eleven platforms (not all current), I'm sitting at 6.7% XIRR.0
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I don't advocate that, just sad to see them appearing to head in a direction that might turn out to be a Lendy approach. There's enough risk from borrowers trying to hide things without platforms getting in on that act as well.takesyourchances wrote: »My gut feeling has been to run MT down and get out as best as possible, I have lost faith in them... I have some loans left that are non property with MT, part of me is tempted to sell them now to reduce off the platform and put the funds elsewhere, the defaults will have to wait and see and other funds are in a massive sales queue.
Yes, and I think that the LTV improvement and risk reduction of a loan that has been amortising for a while is one of the things that often isn't well enough appreciated.takesyourchances wrote: »Ablrate offering a lot of amortising loans is another strong factor now.
More just the normal slow progress of sales, particularly for defaulted loans.Update when there's news basically means "sod off investors and stop wasting our time".0 -
I have got my original investment back in MT (which includes nominal plus interest) and a bit of interest so I'm safe from a capital loss perspective. Just waiting to recover the defaulted loan so that it was all worth it with MT.
That is good you have got out of MT with your investment back and interest made.. Fingers crossed on the default recovery. I am stuck in quite a few loans in the sales lines as such, hopefully none of these will turn to defaults. I have made around £400 interest in the time I have been with them, £750 in defaults so hopefully some can be recovered. I could sell out of a few hundred tonight that will sell, I am thinking to do this and swap any MT sales funds over to Ablrate into amortising loans.All in all P2P has been a not so worth it experience for me except for two platforms: Abl and lending works.
Haven't made losses although still waiting for lendy to actually do some work, but on the whole given the time and effort and risk just simply not worth it at all.
Ablrate has been my most sucessful platform to date and dispite headaches of others, I have continued hopes for Ablrate. I have never went into Lendy. Lending Works after looking into them a lot recently and weighing up risk / protection and ease of use / time I am happy to divert funds to them.
I have around £500 in unbolted so far, that was my swap for Collateral bling and I will try them out for a while to see how that goes. Just deposit and auto set, so less time. I opened Growth Street after reading up on it and several reviews, rate is lower but loans of 30 days appeals to me for some funds too and can be left on auto invest and good track record so far for investors.
So I am giving these a try.
I agree, the time and effort put in is a lot and the risk, the time and effort was put in to help deal with the risk and then some things go out of your control like the Collateral experience.
If I can keep Ablrate as a core P2P all continuing well and a few auto accounts doing their thing - Lending Works, Unbolted and Growth Street that would do me with P2P. This is the last of what appeals to me at the moment in P2P.
I will run MT down and wait on what happens with Collateral with a view to any returned funds being used elsewhere. I know I am repeating myself but it is the development loans that have become a bugbear and easy saying it now, but having been around property developments for many years in the past I know a lot of the pitfalls of the developments stages and will be more relaxed when fully out of these
:) 0
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