Peer-to-peer lending sites: MSE guide discussion
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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.
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.
I don't like the hiding of things either to investors, as you said enough risk from the borrowers doing that without the platforms getting in on it.
I have come to learn to really appreciate the amortising loans on Ablrate, there is something about seeing a re-payment with part capital back and interest together and the break down of return and something I am more conscious of now when investing.
It can be easier for a borrower to just pay the interest back, but when it comes to the capital repayment the problems can start. So getting capital and interest together monthly with Ablrates amortising loans at a good rate is more appealing now than ever.
There has been a lot of factors like this and the others mentioned that have changed my gut feeling and thoughts towards investing any more with MT and especially waiting to see results from recovery too.
It took a lot of deciding to go with MT, Ablrate and Collateral and avoided others, so I feel I am just left more comfortable with Ablrate over MT now.0 -
Unbolted are judging interest in a property loan which will have a secondary market, at 10% for a second charge loan I am not sure I will be investing but it's an interesting move by them.0
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keyboardworrier wrote: »Unbolted are judging interest in a property loan which will have a secondary market, at 10% for a second charge loan I am not sure I will be investing but it's an interesting move by them.
I got the email, I won't be going into it with unbolted if they launch that loan, purely I went there for the bling loans to get something different to property related loans.0 -
New blog post on financialthing which I read on Collateral, maybe of interest to those tied up in it.
http://www.financialthing.com/collateral-p2p/0 -
Unsurprisingly, another MT loan has gone into a technical default. I was planning to use that money next week but made alternative plans when the date kept slipping back!
This time it does genuinely look like the company doing the refinance are dragging their feet, but why do borrowers leave it so late!? 18% default interest + whatever fees/loading MT charge (even if it is for less than a week) on £300k isn't cheap.
Technically default interest should've started to be paid earlier too, rather than just from this latest setback! Although I suppose MT have used their discretion to allow it to extend, and extend, and extend!
Just seen the 'General Update' that has been mentioned. 14 days does seem a long time to allow it to still show as "performing" when live trades are being carried out on the SM! I'd allow something like 3 working days personally to allow for banking errors - but shouldn't these loans have a Direct Debit or Standing Order in place?
If a company are messing about and changing dates or whatever to pay interest up to 14 days late, it really makes me worry about the capital aspect!
I've not signed up to Ablrate but keep reading good things about them. Do they have any kind of sign up incentive?0 -
I saw this regarding the self storage in Merseyside on MT, I am not in this one. Not good for MT this again.
Regarding Ablrate, there is no sign up incentives as such. But so far they are running things well, they have an IFISA, loan quality has been solid, options of amortising loans which I like as paying captial back along with interest helps reduce the risk too.
With the recent problems in other platforms I have learnt to appreciate amortising payments and while we can't predict the future, I hope Ablrate keeps going the way they are.0 -
I think i will only stick with:
Lendingworks (10k) and ABL (4k).
What are your thoughts on ratesetter? Why exit it?
Rest i am exiting - but out of my control as most is stuck due to illiquidity.
Have around 35k total P2P to be reduced to 14k eventually...0 -
Somerset_La_La_La wrote: »Unsurprisingly, another MT loan has gone into a technical default. I was planning to use that money next week but made alternative plans when the date kept slipping back!
I've learned this last month or so that you cannot rely on being able to quickly access money invested in p2p, even on those platforms that appeared to offer good Secondary Market liquidity. Obviously my investment in Collateral is unavailable for the foreseeable future but even before this the MT secondary market had become very illiquid.
I'm in the process now of withdrawing all funds from p2p.
My investment with Ablrate has now been reduced to zero. The secondary market there has been the most liquid by far and I've managed to dispose of all my loans at prices above par quite quickly. The automated emails to alert me to a trade on the secondary market has been very useful as were their capital/interest repayment notifications as they allowed me to simply log in and process a withdrawal following notification. The ability to discount loans for sale could be of significant benefit for someone wishing for a quick sale. Withdrawals generally take two working days.
MT investment stands at approx £4400 with £3800 sitting in slow moving sales queues on the secondary market. They are moving but it will take weeks/months before all my loan parts are sold. The quicker the Self Storage loan resolves and the better the outcomes are for the defaulted loans the quicker I expect my loan parts to sell. A good run of loans repaying on time and some satisfactory resolutions of defaulted loans will go a long way towards resolving some of the current issues with MoneyThing. Withdrawals are usually credited same day, often within a few hours.
My Unbolted account is set to not auto-invest and as with Ablrate the notifications of loan repayments make it very straightforward to log in and make withdrawals once prompted. Withrawals usually credited next working day.
My Lendingworks account is now also set to withdraw capital and interest once repayed, the automated system making this quite straightforward. Clearly this is a long-term process as the loan terms are up to 5 years unless I wish to pay a fee to exit more quickly.
My Funding Secure account has only £75 invested with one loan overdue since October but I'd not invested a great deal with them anyway and the secondary market worked quite well when I used it. The other two loans there are left to run to term (or beyond).
I may find that I've been somewhat premature is reducing/withdrawing my p2p investments but with LISA allowances available for this tax year and next, some home improvement work and a potentially expensive holiday on the horizon it makes sense for me currently. When a clearer picture is available re Collateral, I will be able to make an informed decision over future p2p investments.0 -
I think i will only stick with:
Lendingworks (10k) and ABL (4k).
What are your thoughts on ratesetter? Why exit it?
Rest i am exiting - but out of my control as most is stuck due to illiquidity.
Have around 35k total P2P to be reduced to 14k eventually...
I can certainly see why you feel with sticking with Ablrate and Lending Works once you reduce down. I plan for these to be my P2P core platforms eventually too if things can get shaped this way.
Ratesetter, for me my overall amount fell below 5% into the higher 4% bracket, with re-payments and lump sum repayments on the 5 year. I made a mental rule with myself never to re-invest in RS below 5%.
Rates can be hard to catch and can fluctuate quite low and it was getting quite annoying checking them for all that was going in. This was my reason getting out and also it was a way for me to reduce me P2P down a little which I changed into my IT's. Yield is not far off the rates sometimes on RT and chance of growth as I buy and hold long term. It was not for the risk of losing money with me with RT like MT.
Tbh, if your happy with the rate your funds are getting on RT, there is maybe no reason to sell. It is a different animal to MT / risk etc.
I done a complete new spreadsheet of all my overall investments last night (an overhaul spreadsheet was overdue), I see how I let P2P run away last year. My P2P has been reduced to just under 15k now. I feel more comfortable now, but £4600 out of this is tied in Collateral, MT is now reduced to £2389 as I sold out of loans I could sell to reduce the platform. £750 of which is left is in default loans. All that is left on MT is for sale but is stuck too due to illiquidity with the rest for sale from others. I will just let it take its course here.
I am experimenting with unbolted a little still and few hundred in growth street to see how that all works for the 30 day business credit loans. Idea is also funds should not be tied up too long if I ever want to withdraw or reduce.
But overall my P2P is reduced, the biggest change for me compared to a year ago now is new money going in has drastically changed and platforms cut out. I will balance some payments back into lending works and add some new funds here and there to LW while the rate is 6%.
Ablrate at the moment I am just re-investing repayments as they come in as it is now my highest holding over 5k. This is also to keep control of my P2P level against other investments and when I do add some new money to new loans etc, I will have to think how much I am comfortable holding in Ablrate as one platform or do a just re-invest payments / withdraw after a certain overall level.
I am adding and plan to add more to my S&S ISA and into some of my investment trusts and raise my cash level up a little. My new spreadsheet is letting me see everything overall together and I don't really want to be much heavier at the moment in P2P overall and I want to see some outcomes from MT start to happen good or bad and same with Collateral.
Also I will buy the odd £250 holding with property partner.
Overall, my P2P is on a major slowdown with new money compared to before and a plan of direction in narrowing down platforms to hold with, like you Albrate, Lending Works and I will see how Growth Street goes and Unbolted goes. Also the other major thing, I won't let my P2P overall percentage run away in line with my overall investments so this spreadsheet overall was needed last night
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That's a bit unfair. It's more like the Ablrate business loans that also have property security: justified by business cash flows first with property as backup only. Vs property lending where something happening to the property itself is the purpose.takesyourchances wrote: »I got the email, I won't be going into it with unbolted if they launch that loan, purely I went there for the bling loans to get something different to property related loans.
Because of that I will be putting in a bit to encourage another secured business lending platform like Ablrate.0
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