bg
Member of DD Central
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Post by bg on Mar 24, 2016 12:03:11 GMT
I'm getting rather annoyed by the misleading LTV's many of the loans on FS show.
For example I look at the Streatham property. £89k loan against a £550k asset giving an LTV 16.18%. Brilliant - but once i invested i hit the magnifying glass and it brings up a second window saying there's an existing first charge on the property of £296k meaning the overall LTV is 70% (and as a second charge the risk is much higher).
Why can't the correct LTV be shown on the front page of the loan? It's not clear as it is and is misleading to investors. I question if I should be investing in this platform at all.
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bob76
Posts: 103
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Post by bob76 on Mar 24, 2016 12:12:49 GMT
I completely agree, many of the LTVs displayed are misleading, and you do need to look at the details to understand the real LTV.
Surely, FS should be able to display the real LTVs...
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duck
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Post by duck on Mar 24, 2016 12:22:11 GMT
I tend to look in first instance at the 'New Loan Coming' Emails, since they seem to have a clearer overall view laid out. If I don't like the look of a loan at that stage I might not even look at it on the site.
With respect to the mentioned loan the Email for this particular loan clearly stated 2nd charge and LTV of 70%. Have to agree that having to 'click down' 2 levels to find the true LTV could be misleading but I tend to not invest until I have read all of the available info ....
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bob76
Posts: 103
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Post by bob76 on Mar 24, 2016 13:24:47 GMT
I think they should correct this soon, as many tables/lists on the website are showing some LTV quite far from the actual ones.
If a loan defaults, money is not fully recovered, and the LTV displayed was a long way from the original valuation and actual debt, then FS would probably be liable for compensation...
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locutus
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Post by locutus on Mar 24, 2016 13:36:04 GMT
Vote with your wallets people. The LTVs are quite obviously misleading and the practice has no place on a reputable P2P site. Why wait for the brown stuff to hit the fan when you can just take your business elsewhere and get the same if not better deals. FS have a few things to fix before they become attractive to me again.
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brin
I am trying to stay calm.
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Post by brin on Mar 24, 2016 19:50:00 GMT
I think they should correct this soon, as many tables/lists on the website are showing some LTV quite far from the actual ones. If a loan defaults, money is not fully recovered, and the LTV displayed was a long way from the original valuation and actual debt, then FS would probably be liable for compensation... Quite right, after finding myself with some free time today, i scanned through some threads on main FS thread, "The scottish boat yard" thread perfectly describes what you say here.
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spyrogyra
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Post by spyrogyra on Mar 26, 2016 14:09:52 GMT
Apart from misleading LTVs, FS always does what they want to. If an auction is pretty big they will offer backdated interest,send email/update reminders about the incentive. If the loan is small, they won't bother announcing/sending notifications. A lame excuse that funds are needed urgently is the cleverest to fob off lenders who have missed. Same applies with the handling of late loans. For example, loan 2930007099 is still lingering after it had to pay back on 13/11/15. I wonder is that how they are going to deal with the big property loans and for how long would lenders' money be tied up (for years?). Reading through the two of the latest updates for the above mentioned loan doesn't make me an optimist:
18/03/2016
As before the borrower has been in touch advising that funds are expected next week. One way or another we should have a final resolution next week
24/03/2016
Easter has delayed action - update next week
However, Easter was not in the way for placing quite a few new auctions this week.
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