mikes1531
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Post by mikes1531 on Apr 12, 2015 1:27:25 GMT
The beautiful microsculptures are also renewing at a lower rate this month too; it's an inevitable trend now that there are more lenders here, most of whom are happy enough to accept the lower rates. Not sure what to make of the microsculptures as they are renewing 4 weeks in advance at a lower interest rate. Okay it's only a 1% difference and 4 weeks early but obviously FS feel they have enough lenders on board so I expect the old 13% will no longer be the 'normal' and then probably 12% will no longer be the 'normal' and so on. Maybe time to scale back my involvement. According to my account info, the old loans are showing as being repaid on 10/Apr, and interest stopped accruing at that point. Which, I think is a rather unfair thing for fundingsecure to have done, because there's no sign of my money or the accrued interest having been credited to my account. If the loan is being renewed, then I can see how FS aren't in a position to credit any money to lenders' accounts right now -- because they haven't received the principal back from the borrower and they probably don't have £300k lying around to make available in case lenders decide they want to withdraw the proceeds. But if FS aren't going to give us access to our money then IMHO they ought to continue paying us interest. I also note that the email announcing the 'new' loan says interest on that "will be paid with an effective date of April 11". Does that suggest that even lenders who were in the initial loan and re-invest in the renewal loan will lose a day's worth of interest? I do hope not! It will be interesting to see how quickly the replacement loan is funded, and whether the reduced interest rate has any noticeable effect on that. If the loan is funded quickly, then perhaps it's time for us 'early adopters' to start looking more seriously at some of the other P2P investment opportunities.
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bugs4me
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Post by bugs4me on Apr 12, 2015 7:22:36 GMT
Not sure what to make of the microsculptures as they are renewing 4 weeks in advance at a lower interest rate. Okay it's only a 1% difference and 4 weeks early but obviously FS feel they have enough lenders on board so I expect the old 13% will no longer be the 'normal' and then probably 12% will no longer be the 'normal' and so on. Maybe time to scale back my involvement. According to my account info, the old loans are showing as being repaid on 10/Apr, and interest stopped accruing at that point. Which, I think is a rather unfair thing for fundingsecure to have done, because there's no sign of my money or the accrued interest having been credited to my account. If the loan is being renewed, then I can see how FS aren't in a position to credit any money to lenders' accounts right now -- because they haven't received the principal back from the borrower and they probably don't have £300k lying around to make available in case lenders decide they want to withdraw the proceeds. But if FS aren't going to give us access to our money then IMHO they ought to continue paying us interest. I also note that the email announcing the 'new' loan says interest on that "will be paid with an effective date of April 11". Does that suggest that even lenders who were in the initial loan and re-invest in the renewal loan will lose a day's worth of interest? I do hope not! It will be interesting to see how quickly the replacement loan is funded, and whether the reduced interest rate has any noticeable effect on that. If the loan is funded quickly, then perhaps it's time for us 'early adopters' to start looking more seriously at some of the other P2P investment opportunities. They haven't repaid even though it's shown as 'Loan Repaid' it's still listed under 'Current Active Investments'. Whilst it is within the right of the borrower to redeem early I do not like the smell of this one. Looks though that interest ceased on the 10th even though no funds have been credited to 'Investment History'. All a bit of an anomaly.
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mikes1531
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Post by mikes1531 on Apr 12, 2015 15:17:32 GMT
Whilst it is within the right of the borrower to redeem early I do not like the smell of this one. I expect early refinancing happens all the time. Whenever a borrower can get a new loan that costs less than their existing loan they have an incentive to refinance. And that's going to be more of a risk for a lender making loans that have a short minimum term and no early payment penalty. The question here is... How did the situation develop? Did FS go to the borrower and offer to extend the loan at a lower rate? Or did the borrower come to FS and say they had a better offer elsewhere and ask FS to beat that offer so as to be able to retain the loan? Looks though that interest ceased on the 10th even though no funds have been credited to 'Investment History'. All a bit of an anomaly. This is the part that bothers me most. I don't understand why FS didn't deal with this loan they way that have on so many previous occasions -- repay the lenders just before the new loan goes live on the platform, with interest on the old loan stopping at that point. Their big worry has to be whether the current lenders are willing to fund the new loan. If they aren't, and those lenders want to withdraw their money, then FS need to have sufficient underwriting in place to deal with that. Inasmuch as underwriting costs money, I wonder whether FS might have made a mistake in not offering a simple rollover. They know what proportion of their lenders have turned on the automatic 'Renew' option, so in that case they'd know just how much underwriting they need to organise to cover non-renewing lenders. This way they have to guess about reinvestment, and really ought to organise 100% underwriting to be sure they can't have a problem. They easily could have asked for reinvestment commitments in advance, and then closed out the old loan when all the necessary commitments were in place, stopping the interest on the old loan at that point, which still would have been before the end of its term. I haven't a clue why they didn't do that.
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jjc
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Post by jjc on Apr 12, 2015 18:28:17 GMT
On mikes1531’s good points, worth noting there’s 150k (half the loan) hanging on just 2 big stakes. Interesting to see how these guys take to the rate drop. One factor perhaps worth remembering on this loan: the sculptures can be taken out of storage & exhibited/displayed (without restrictions?) during the loan term (unless the terms have changed from the prior loan). Given their fragility/tinyness damage/theft/loss/oops I sneezed risks could exist on any of these outings. Insurance should mitigate (but we haven’t seen the terms) and blood & stones always springs to mind when dealing with insurers. Even if they do eventually fork out lenders may need to be prepared to have their funds tied up for a long time if something does go awry. Just a thought.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Apr 13, 2015 9:25:56 GMT
Not sure what to make of the microsculptures as they are renewing 4 weeks in advance at a lower interest rate. Okay it's only a 1% difference and 4 weeks early but obviously FS feel they have enough lenders on board so I expect the old 13% will no longer be the 'normal' and then probably 12% will no longer be the 'normal' and so on. Maybe time to scale back my involvement. According to my account info, the old loans are showing as being repaid on 10/Apr, and interest stopped accruing at that point. Which, I think is a rather unfair thing for fundingsecure to have done, because there's no sign of my money or the accrued interest having been credited to my account. If the loan is being renewed, then I can see how FS aren't in a position to credit any money to lenders' accounts right now -- because they haven't received the principal back from the borrower and they probably don't have £300k lying around to make available in case lenders decide they want to withdraw the proceeds. But if FS aren't going to give us access to our money then IMHO they ought to continue paying us interest. I also note that the email announcing the 'new' loan says interest on that "will be paid with an effective date of April 11". Does that suggest that even lenders who were in the initial loan and re-invest in the renewal loan will lose a day's worth of interest? I do hope not! It will be interesting to see how quickly the replacement loan is funded, and whether the reduced interest rate has any noticeable effect on that. If the loan is funded quickly, then perhaps it's time for us 'early adopters' to start looking more seriously at some of the other P2P investment opportunities. Well, I don't take to the rate reduction at all well, and my money will be staying out. I've always felt this one was reasonably risky and that 13% was pushing it on the low side, low LTV or not - just how large a pool of buyers for these things do we think there is? I am absolutely confident that the renewal will fill quickly - there are enough lenders on board at FS these days who are absolutely happy with 12%, whatever they are lending against. As we've seen recently on other forum threads the flood of people entering p2p and seeing 12% as an amazing return is starting to grow, and they simply don't consider the risks. As I've said before, it is inevitable, and we either accept it or move on. I've already started the move-on a little while back as it's been some time since we had any serious new opportunities at more than 12% (I don't count property, which, as well documented elsewhere, I'm steering clear of on FS until I've seen how they deal with defaults and overruns). Not gone, and do still roll-over when I consider it suitable, but the tide of my money has turned at the moment and the flow is out rather than in. I'm still a fan of FS, having said that, just that they aren't currently offering much of what I want.
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jonno
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Post by jonno on Apr 13, 2015 9:42:22 GMT
ramblin rose: can I ask you a question? I started investing with FS about 6 months ago,so this is my first material "maturity". I agree with your above comments and will probably roll over a much reduced amount later today. However,when can I expect to see my repayment hit my account, 'cos it wasn't there a few minutes ago? Thanks.
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ramblin rose
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Post by ramblin rose on Apr 13, 2015 9:56:36 GMT
ramblin rose: can I ask you a question? I started investing with FS about 6 months ago,so this is my first material "maturity". I agree with your above comments and will probably roll over a much reduced amount later today. However,when can I expect to see my repayment hit my account, 'cos it wasn't there a few minutes ago? Thanks. Well, as Mike has pointed out, this hasn't followed normal procedure, so it's anybody's guess - I'm assuming it will be when they make the new loan available. Normally it happens minutes before the new loan is made with interest to date and pricipal repaid and rolled-over prinicpal then re-invested. On this one they seem to have stopped our interest accruing a few days ago but not given us our money back, which as Mike stated is not really playing with a straight bat. As there has been a reduction in interest rate there won't be a roll-over of capital, so you'll need to go in manually and re-make the investment for the amount you want.
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jonno
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Post by jonno on Apr 13, 2015 10:02:30 GMT
ramblin rose: can I ask you a question? I started investing with FS about 6 months ago,so this is my first material "maturity". I agree with your above comments and will probably roll over a much reduced amount later today. However,when can I expect to see my repayment hit my account, 'cos it wasn't there a few minutes ago? Thanks. Well, as Mike has pointed out, this hasn't followed normal procedure, so it's anybody's guess - I'm assuming it will be when they make the new loan available. Normally it happens minutes before the new loan is made with interest to date and pricipal repaid and rolled-over prinicpal then re-invested. On this one they seem to have stopped our interest accruing a few days ago but not given us our money back, which as Mike stated is not really playing with a straight bat. As there has been a reduction in interest rate there won't be a roll-over of capital, so you'll need to go in manually and re-make the investment for the amount you want. Mmmm. Thanks rose.
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Jaydee
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Post by Jaydee on Apr 13, 2015 10:16:10 GMT
I to have decided on a gradual withdrawal from FS as the more recent loans on offer have not been of interest to me, especially the property loans. I have also been hit with 4 recent defaults / late repayments and this has dented my confidence in FS. I will continue to lend on gold or jewellery providing the LTV is at the right ratio. IMO MoneyThing has now replaced FS as the platform of choice for many of us as they respond quickly to suggestions and their loans have a lower LTV with a very decent return. I'm afraid FS's foray into property was the turning point for me. I may also restart lending on Funding Empire in their new offering of secured loans.
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sqh
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Post by sqh on Apr 13, 2015 11:01:38 GMT
I think we have got the needles and the needle.
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jonno
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Post by jonno on Apr 13, 2015 11:11:07 GMT
I think we have got the needles and the needle. Good point
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ramblin rose
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Post by ramblin rose on Apr 13, 2015 11:13:46 GMT
Well, as Mike has pointed out, this hasn't followed normal procedure, so it's anybody's guess - I'm assuming it will be when they make the new loan available. Normally it happens minutes before the new loan is made with interest to date and pricipal repaid and rolled-over prinicpal then re-invested. On this one they seem to have stopped our interest accruing a few days ago but not given us our money back, which as Mike stated is not really playing with a straight bat. As there has been a reduction in interest rate there won't be a roll-over of capital, so you'll need to go in manually and re-make the investment for the amount you want. Mmmm. Thanks rose. We have the money in our accounts now - well, I have, so I presume the rest of you have too
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sqh
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Post by sqh on Apr 13, 2015 11:23:57 GMT
I think we have got the needles and the needle. Good point Eye thought sew. We've been stitched up.
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jonno
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Post by jonno on Apr 13, 2015 11:41:02 GMT
Good point Eye thought sew. We've been stitched up. Are you sure you're on the right thread?
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ramblin rose
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Post by ramblin rose on Apr 13, 2015 12:12:37 GMT
So sharp. So very sharp.
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