macq
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Post by macq on Apr 25, 2018 21:39:30 GMT
the new layout with more details done a few months back was welcome but would agree with others that there needs to be updates or the info is out of date very quick. Was looking at the C2F SM (or exchange as they call it) and if you click on the details of a loan in arrears they show a timeline with 5 steps arrears,statutory demand,petition,court order,recovered.Not sure how well it works in practice but seems a good idea in principal and perhaps even others not just OC could consider Would you say that orchard is a bit like C2F if one were to have a sort of autoinvest and not get to choose own loans? So you see all the loans invested in, but you don't get to choose them? Sounds like a timeline would be helpful or reassuring. BM have a timeline. (Except c2f aren't bridging property etc). Believe Crowd2fund have a auto invest product but in theory the loans are probably more risky(only my opinion) with the only asset a PG but they do pay a higher rate.As much as i would like a higher rate with Octopus (or even Orchard ) for a set & forget so far its done what it says so i'm ok with it.As much as a bit more info on the late payments would be welcome i am confident that they will sort out the default/late loans.
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zlb
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Post by zlb on Apr 26, 2018 18:42:15 GMT
Would you say that orchard is a bit like C2F if one were to have a sort of autoinvest and not get to choose own loans? So you see all the loans invested in, but you don't get to choose them? Sounds like a timeline would be helpful or reassuring. BM have a timeline. (Except c2f aren't bridging property etc). Believe Crowd2fund have a auto invest product but in theory the loans are probably more risky(only my opinion) with the only asset a PG but they do pay a higher rate.As much as i would like a higher rate with Octopus (or even Orchard ) for a set & forget so far its done what it says so i'm ok with it.As much as a bit more info on the late payments would be welcome i am confident that they will sort out the default/late loans. thanks. Think c2f autoinvest requires regular payment. I wouldn't use that with c2f anyway.
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littleoldlady
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Post by littleoldlady on Jul 12, 2018 10:48:46 GMT
My experience has been different. Currently 99% can be withdrawn and I have not noticed it being much lower than that. As the loans are at fairly low rates to residential borrowers who will lose their homes if they default this still seems to me to be the safest platform. What is safer, apart from FSCS accounts paying <1.5%, accounts with low max deposits and long term fixed rate accounts?
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littleoldlady
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Post by littleoldlady on Jul 12, 2018 11:33:38 GMT
I have been invested since Nov 2016. Your 88% figure is terrifying. Have you raised the issue with them?
Late payments are to be expected and I don't worry about them. Defaults should not be a problem if the property can be sold for more than the outstanding loan. This leaves defaults where the borrower has trashed it (does happen) or where the valuation was badly wrong (should not happen). I would be disappointed if losses were more than a small fraction of 1%.
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dandy
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Post by dandy on Jul 12, 2018 11:48:26 GMT
Well there are some positives then, what you say does make sort or sense but I have come across plenty of borrowers despite paying low rates not being able to make their payments. We do have different experiences though as my loan book is 88% available, how long have you been investing with OC for? keystone if I may ask, how many loans are you invested in? or how many loans make up the unavailable 12%?
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ilmoro
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Post by ilmoro on Jul 12, 2018 11:50:33 GMT
Overall my experience has been similiar to LOL. I have had periods when up to 10% of my small investment has been locked but it has all resolved itself in time. Im apparently at c90% currently (actually only 4% showing as late?) but its distorted as I have a reduced sum invested compared to normal having pulled funds temporarily for other purposes. Decent diversification across 30 loans, most well under 5% of my book, none over 10%. Been in OC since start, though funds in ebb & flow at tax year end.
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littleoldlady
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Post by littleoldlady on Jul 12, 2018 12:03:26 GMT
My biggest is 3.5% of the loan book and the average is 0.6% I have 5 non performing loans but they are all smaller ones. I guess if 2 or 3 of the 3.5% ones went late I could get a picture similar to keystone
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james21
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Post by james21 on Jul 12, 2018 12:23:41 GMT
I had 3 defaulted loans at one point though the dont use the d word, fair enough all got a full recovery and I withdrew everything and wont be going back. 4% is not worth the risk without a provision fund
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ilmoro
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Post by ilmoro on Jul 12, 2018 12:33:06 GMT
5% skin in game from major institutional funder or discretionary PF of variable (even unknown size)? Discuss.
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littleoldlady
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Post by littleoldlady on Jul 12, 2018 12:51:12 GMT
I had 3 defaulted loans at one point though the dont use the d word, fair enough all got a full recovery and I withdrew everything and wont be going back. 4% is not worth the risk without a provision fund Where did you go to, which you thought had a better risk/return ratio?
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macq
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Post by macq on Jul 12, 2018 12:56:49 GMT
having looked this morning for the first time in a while my non available figure has moved up from the usual 3% or 4% up to 9% and i have been with them about 18 months.I have 2 loans in collection which has been the case for a few months and a mix of late & overdrawn which has tended to go up and down depending when i check.While i assume late etc loans will be sorted (only to be replaced by others i would guess)it will be interesting to see how OC handle defaults etc but hopefully as a business in this field before they launched this product i would hope they have a good recovery team. I am slightly more worried by the fact that over the last few months using auto reinvest my number of loans has only increased by a couple which would suggest a slowing of loan flow maybe. (for comparison my wife has been in 6 months and has about 4% late no defaults but again her repayments are not growing the amount of loans)
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macq
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Post by macq on Jul 12, 2018 13:05:29 GMT
5% skin in game from major institutional funder or discretionary PF of variable (even unknown size)? Discuss. There is comfort in the size of OC but not sure how connected each part is in a problem i.e Octopus choice & cash have their own Octopus Labs part of the company.My brain says skin in the game is better then a PF which may or may not be there but i would quite like a mix of skin in the game but 10% would be better then 5% & add the LW shield idea (for more comfort if anybody from OC is reading )
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liso
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Post by liso on Jul 12, 2018 13:21:00 GMT
I am slightly more worried by the fact that over the last few months using auto reinvest my number of loans has only increased by a couple which would suggest a slowing of loan flow maybe. My number of loans has been slowly increasing over several months, perhaps as a result of drip feeding my account a little every week. I've not noticed any dip in loan flow. My bigger concern is the geographical concentration of loans in the south east, specially with prices there currently in decline. Recently OC have gone some way to widening their geographical spread but there is still room for improvement IMO
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Post by keelan on Jul 12, 2018 13:22:24 GMT
The OC business model has concerned me for sometime. My available funds have today reduced to just over 92%. Whilst in the last 2-3 of weeks my account has seen a sharp increase in unavailable funds going from roughly 98.5% to just above 92%. Consequently I am giving serious consideration to withdrawing all available money and putting it in a long term bond account with a guaranteed return of 2.25 - 2.75. Not huge but stress/worry free.
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james21
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Post by james21 on Jul 12, 2018 13:24:26 GMT
I had 3 defaulted loans at one point though the dont use the d word, fair enough all got a full recovery and I withdrew everything and wont be going back. 4% is not worth the risk without a provision fund Where did you go to, which you thought had a better risk/return ratio? I need a couple of accounts that provide easy access to money. At the same time as I had OC I had Assetz quick access account 4.1% with PF and Growth St 5.3% access up to 30 days with PF. I still use these accounts but like Growth St best, if they have defaults you dont see them and after 18 months have not lost anything
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