Greenwood2
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Post by Greenwood2 on Nov 9, 2018 18:31:02 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. Hopefully bigger loans next week will give time for some DD.
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michaelc
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Post by michaelc on Nov 9, 2018 18:48:31 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. Particularly tough when there are three properties bundled into one loan.
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Greenwood2
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Post by Greenwood2 on Nov 10, 2018 7:48:43 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. Particularly tough when there are three properties bundled into one loan. I quite like a small loan, with low LTV secured against three separate properties. Only problem it went too fast!
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snowmobile
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Post by snowmobile on Nov 10, 2018 13:57:22 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. I agree. I don't like having to make rushed decisions when investing. I'm beginning to think there are bots in operation as the loans are disappearing so quickly, often before the email arrives. Why can't they use the pipeline sections as other platforms do? To give advance notification of new loans before they go live and available to invest. Even 30-60 minutes notice would help. Abl used to get a lot of criticism for this issue and they have changed their system to allow 4 hours to do DD.
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shimself
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Post by shimself on Nov 10, 2018 18:27:17 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. I think that platforms actually put themselves in a bit of danger when they offer loans with no time for DD. If one goes wrong lenders could make a case that they felt pushed into investing
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Post by slender on Nov 10, 2018 18:50:42 GMT
Not a fan of the way the primary market is going; both loans today snapped up in a couple of minutes with no opportunity to carefully review. I think that platforms actually put themselves in a bit of danger when they offer loans with no time for DD. If one goes wrong lenders could make a case that they felt pushed into investing Is it possible to claim for 'FOMO'? (God, I hope not!)
Seems even at a min. £5k 'buy in' there isn't enough to go around. BC have always stated they do not want to be 'mass market' as they do not want the administrative overhead, and were at one stage considering upping the min. to £10k.
I've always had the impression their preference is to cap participation rather than alter their model to accommodate a greater number of investors.
Dropping the SM would also reduce demand, as it would remove the 6-weeks-to-go flippers from the equation.
I'd support either or both initiatives.
What I can't see them doing is 'pre-launching' loans - it would generate too many questions which they are not geared up to answer. (They could of course increase staff to provide those answers, but, as they have always said, increased overheads means reduced rates.)
Another option is to go wholly 'black box' but that's a radical change of MO and one that they may not even be FCA'd up for.
From BC's perspective, 'it ain't broke', and as the saying goes ....
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Greenwood2
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Post by Greenwood2 on Nov 10, 2018 20:50:41 GMT
You don't have to make rushed decisions ever, if it's a small loan and it goes quickly and you don't think you have time to evaluate the loan don't bid there will be a bigger loan along (probably soon), or if not still just don't bid if you're not happy. it's not the platforms problem. We are grown ups here.
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snowmobile
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Post by snowmobile on Nov 11, 2018 11:44:26 GMT
I appreciate I don't have to bid. However I don't want a situation where I am only able to invest in the bigger loans, if I want to evaluate the loan before bidding. That increases the overall risk profile of my loan portfolio in my view.
Some advance info could be put on the website earlier in the day. I don't necessarily think that a 30-60 minute 'pre-launch' would increase administrative work. There wouldn't be any point raising questions, as they would be unlikely to receive a reply before bidding opened.
The issue isn't just FOMO, it is the cash drag effect. Any money put in on Friday and not invested cannot be withdrawn until Monday at the earliest. If I had known in advance there was hardly anything available, I might have chosen to invest those funds elsewhere on Friday.
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Greenwood2
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Post by Greenwood2 on Nov 11, 2018 13:35:50 GMT
I appreciate I don't have to bid. However I don't want a situation where I am only able to invest in the bigger loans, if I want to evaluate the loan before bidding. That increases the overall risk profile of my loan portfolio in my view. Some advance info could be put on the website earlier in the day. I don't necessarily think that a 30-60 minute 'pre-launch' would increase administrative work. There wouldn't be any point raising questions, as they would be unlikely to receive a reply before bidding opened. The issue isn't just FOMO, it is the cash drag effect. Any money put in on Friday and not invested cannot be withdrawn until Monday at the earliest. If I had known in advance there was hardly anything available, I might have chosen to invest those funds elsewhere on Friday. Notification would probably have to be the day before, or early in the morning to allow transfer of funds. I agree it would be nice to know how many (if any) loans were going to be launched and the approximate sizes at least. Very few lenders can ever get into the small loans so it's hardly worth bothering to transfer funds or do any DD for these, ie, at £5000 a pop the £77,000 loan on Friday only stretches to 16 (lucky/fast fingered) lenders and the £110,000 one was only slightly better needing just 22 lenders. Fortunately there are much more frequent loans now, usually at least a couple every week and most lenders are probably not attempting to invest £5000 every week!
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Post by eascogo on Nov 11, 2018 16:57:57 GMT
I appreciate I don't have to bid. However I don't want a situation where I am only able to invest in the bigger loans, if I want to evaluate the loan before bidding. That increases the overall risk profile of my loan portfolio in my view. Some advance info could be put on the website earlier in the day. I don't necessarily think that a 30-60 minute 'pre-launch' would increase administrative work. There wouldn't be any point raising questions, as they would be unlikely to receive a reply before bidding opened. The issue isn't just FOMO, it is the cash drag effect. Any money put in on Friday and not invested cannot be withdrawn until Monday at the earliest. If I had known in advance there was hardly anything available, I might have chosen to invest those funds elsewhere on Friday. Notification would probably have to be the day before, or early in the morning to allow transfer of funds. I agree it would be nice to know how many (if any) loans were going to be launched and the approximate sizes at least. Very few lenders can ever get into the small loans so it's hardly worth bothering to transfer funds or do any DD for these, ie, at £5000 a pop the £77,000 loan on Friday only stretches to 16 (lucky/fast fingered) lenders and the £110,000 one was only slightly better needing just 22 lenders. Fortunately there are much more frequent loans now, usually at least a couple every week and most lenders are probably not attempting to invest £5000 every week! This example [16 lucky/fast fingered] takes no account of those investors benefitting from the auto-invest facility [minimum £15k invested on the platform]. So in practice there will be far fewer than 16 lucky punters. Also a few auto-investors may have >5k allocations.
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Greenwood2
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Post by Greenwood2 on Nov 11, 2018 20:25:55 GMT
I don't think either of these particular loans had auto invest enabled, often small loans don't.
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Greenwood2
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Post by Greenwood2 on Nov 16, 2018 19:02:11 GMT
Loans lasted a few hours today, but still going really fast.
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michaelc
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Post by michaelc on Nov 26, 2018 17:42:27 GMT
No serious analysis to back this up but it _seems_ as if the rates on offer respond quickly (week by week) to demand. High demand = lower rates.
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SteveT
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Post by SteveT on Dec 31, 2018 8:29:06 GMT
December interest already paid
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michaelc
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Post by michaelc on Dec 31, 2018 19:09:58 GMT
Yes and I'm glad to see investors voting with their feet by not snapping up all loans one day one. Hopefully rates might rise again....
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