rogerthat
Member of DD Central
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Post by rogerthat on Jun 9, 2023 17:02:49 GMT
I haven't invested anything in FC for donkeys but im still chasing them via the FO service on a couple of property loans from 16/17
FC in their defence have stated that the average return on property loans was 7%..I have to say in the 6yrs or so I invested on the platform, I never ever saw one at 7% (or If I did, I never invested in one). From memory they started at 8% or 9% and the Short Term Loans (STL's) even at 10%.
Anyone with an opinion on that please ?
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Post by GSV3MIaC on Jun 9, 2023 17:24:05 GMT
The "average return" probably comprises some that paid back at 10% or 12% or whatever, and some which paid sod all and vanished with the money. 'Average return' is a very moveable feast - I suspect they just divided what came back by what went out, by some number of years.
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Post by mostlywrong on Jun 16, 2023 10:21:20 GMT
The "average return" probably comprises some that paid back at 10% or 12% or whatever, and some which paid sod all and vanished with the money. 'Average return' is a very moveable feast - I suspect they just divided what came back by what went out, by some number of years. That is how I understood it. I recall that property loans tended to run at 8% with the larger ones offering 2% cashback in order to get them away.
A failure to pay up at the end of the loan meant that the rate rose to 10% pa.
Those were the days...
But, of course, quite a few vanished without trace, taking all our dosh with them!
MW
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rogerthat
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Posts: 2,048
Likes: 1,994
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Post by rogerthat on Jun 22, 2023 13:09:46 GMT
Update..I did spend some time going through my entire loanbook recently...and have to admit there were 7% and 7 1/2% loans though very few. I also understand that FC's 'average' return was based on property loans across the whole platform, not based on an individual lenders loanbook and of course some disappeared without trace.
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