dandy
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Post by dandy on Feb 10, 2017 9:15:12 GMT
Sorry if this has been asked before but what is the term of any investment on Octopus Choice. I understand that funds are spread over a number of available loans but are these all for different lengths? If so, what is the longest term I could be tied in for? Also is there any fee to sell loans?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 10, 2017 10:00:15 GMT
Sorry if this has been asked before but what is the term of any investment on Octopus Choice. I understand that funds are spread over a number of available loans but are these all for different lengths? If so, what is the longest term I could be tied in for? Also is there any fee to sell loans? There isnt a term as such. You can withdraw your money without charge providing OC can reallocate your loans to other investors/themselves. You can see the current loanbook by clicking on statistics. Currently the longest loan ends in 2020 but you would be diversified across multiple loans (target is 20) Number of loans available currently is 19 . The advertised rate is only a target and may not be achieved
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Post by vanessaiman on Feb 10, 2017 10:08:43 GMT
Hi dandy, I hope you are well. Yes, you're correct all our loans have different term lengths. The typical loan has a term of around 9 months. The longest we'd ever lend for would be 5 years. There are no costs to withdraw. And as ilmoro has said, provided there are people to buy your loan parts, you should get your money in a matter of working days. If there aren’t, and if we can, Octopus will buy your loan parts, just to speed up your withdrawal. If you request a withdrawal before 4 pm, it will take us 1 day to process and you can expect it to take 3 working days to clear. Best, Vanessa
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spyrogyra
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Post by spyrogyra on Feb 14, 2017 13:40:48 GMT
Forgive me if the issue has already been discussed. I went through the first few pages but can't afford the time to read all of them - 14. Probably it's time to break the single thread in multiply threads with suggestive titles.
My question to Octopus:
I understand perfectly well the advantages of the current investment model. But there are people who would like to be more in control and such who are inclined to take higher risk. At some point would you consider another investment model running alongside the current one, where investors will be able to pick the loans they wish to invest into?
After all, if I am ready to accept the risk to be told one of my investments (picked up by the system) in E17, or L24, has defaulted, why shouldn't I be allowed to take full responsibility for where I'm putting my money?
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littonowl
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Post by littonowl on Feb 14, 2017 14:19:28 GMT
Forgive me if the issue has already been discussed. I went through the first few pages but can't afford the time to read all of them - 14. Probably it's time to break the single thread in multiply threads with suggestive titles. My question to Octopus: I understand perfectly well the advantages of the current investment model. But there are people who would like to be more in control and such who are inclined to take higher risk. At some point would you consider another investment model running alongside the current one, where investors will be able to pick the loans they wish to invest into? After all, if I am ready to accept the risk to be told one of my investments (picked up by the system) in E17, or L24, has defaulted, why shouldn't I be allowed to take full responsibility for where I'm putting my money? I like the idea spyrogyra Not sure how they could incorporate it (or even if they would want to?), but it might be another selling point to attract more customers and/or more funds? Maybe they could just set a side a small percentage of each loan for 'active' investors who would rather control diversification for themselves? Perhaps this investment option is something they could offer via the forthcoming IFISA, alongside the more set and forget offering?
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spyrogyra
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Post by spyrogyra on Feb 16, 2017 10:49:58 GMT
The more I think the less I am convinced. To lend to unknown properties for unknown duration at unknown interest doesn't sound good at all. We are being told approximations only - the target rate could be 4.9% interest but in really we may end up with a 10% deviation if the real rate turns out to be 4.5%. Some loans are 9 months, others 5 year.
Would you board a train if you don't know how much does the ticket cost, how long would the journey be and where it's gonna take you? Just because it's a great train with proven "track record". Ha! I don't know how I came up with this comparison.
The only sure thing is their fees collected upfront.
Apart from fees, I am not convinced that the borrowers are paying the same low interest rate as the % passed to lenders. It seems unethical that the platform will receive interest with £0 participation.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 16, 2017 11:16:28 GMT
The more I think the less I am convinced. To lend to unknown properties for unknown duration at unknown interest doesn't sound good at all. We are being told approximations only - the target rate could be 4.9% interest but in really we may end up with a 10% deviation if the real rate turns out to be 4.5%. Some loans are 9 months, others 5 year. Would you board a train if you don't know how much does the ticket cost, how long would the journey be and where it's gonna take you? Just because it's a great train with proven "track record". Ha! I don't know how I came up with this comparison. The only sure thing is their fees collected upfront. Apart from fees, I am not convinced that the borrowers are paying the same low interest rate as the % passed to lenders. It seems unethical that the platform will receive interest with £0 participation. You can see the borrower rate on the loan statistics page, premium is 3-6% over lender rate. They dont have £0 participation, they have at least 5% and potential more at times like now when supply outstrips supply as they prefund the loans themselves. Not sure there model is much different to a multitude of established players where the loan book is black box, ie you dont know what properties you're lending too. In fact slightly more transparent as at least you have an identified loan in an area location. Again with most of the other players you dont know the length of the journey or where its going to take you. The interest rate thing as Ive posted above is annoying but then again several other platforms specify target rate. My objection is that they quote an achievable rate and then dont achieve it (should be noted that their transparency of loan book allows us to determine that). Other platforms may of course be doing the same, though some are over achieving on their target rate. Guess you can choose to stay at home, use your own transport, or take the train, but if you do the later probably better to be on the Orient Express. That said as I keep getting butter rather than clotted cream on my scones and Im still waiting for my tea, currently I shall be getting off at the next stop after words with the conductor.
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spyrogyra
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Post by spyrogyra on Feb 16, 2017 11:29:31 GMT
Their 5% involvement should result in collecting interest from the same 5% investment. Collecting interest from other peoples money, in the proportion you quoted just shows what happens when supply outstrips demand,
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Post by vanessaiman on Feb 16, 2017 17:31:36 GMT
The more I think the less I am convinced. To lend to unknown properties for unknown duration at unknown interest doesn't sound good at all. We are being told approximations only - the target rate could be 4.9% interest but in really we may end up with a 10% deviation if the real rate turns out to be 4.5%. Some loans are 9 months, others 5 year. Would you board a train if you don't know how much does the ticket cost, how long would the journey be and where it's gonna take you? Just because it's a great train with proven "track record". Ha! I don't know how I came up with this comparison. The only sure thing is their fees collected upfront. Apart from fees, I am not convinced that the borrowers are paying the same low interest rate as the % passed to lenders. It seems unethical that the platform will receive interest with £0 participation. Hi spyrogyra, That's not a problem – we're always happy to answer any questions. Yes, we recognise that there are some investors that would prefer picking the loans they're invested in, but as you've rightly said this isn't our investment model (at least, yet). At Octopus Choice we think we've managed to create a simple and transparent product that takes the hard work out of constructing a portfolio. We've tried to remove the pressure of 'picking winners' so that the products' as easy to use as possible. We think we've found a fair way of letting you earn a great rate, all the while knowing that your money is invested in high-quality secured loans that are sourced by an experienced lender and backed by their own money. Now we'd never rule out further product extensions in the future, but the discretionary nature is quite core to the current proposition and something which investors seem to value. Best, Vanessa
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Post by davee39 on Feb 16, 2017 17:45:45 GMT
Their 5% involvement should result in collecting interest from the same 5% investment. Collecting interest from other peoples money, in the proportion you quoted just shows what happens when supply outstrips demand, The modest difference between the borrower rate and the Lender rate is effectively the platform fee to the borrower, and is somewhat less than that charged by the 12% platforms where the borrower pays over 30%. It perhaps also indicates a difference in the degree of risk.
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littonowl
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Post by littonowl on Mar 2, 2017 16:52:21 GMT
Hi littonowl , Just a bit of clarification on late-payments in case useful. There are two reasons we’d flag a loan in the system: either the borrower misses two interest repayments; or they fail to repay the loan on time. In the majority of cases, a failure to repay the loan on time is due to a sale falling through, or a refinance taking longer than expected. This sometimes occurs when lending money, and shouldn’t be a cause for concern. Octopus Property has a clear process for dealing with missed payments – a process that begins with emails and letters being sent to the borrower and their solicitor, notifying them of our intention to instruct solicitors. Experience shows that most of these loans are resolved with the threat of legal action, without having to escalate further. Please feel free to let me know if you have any further questions. Best, Vanessa Hi vanessaiman Please can you give us an update on the situation here, as the message highlighted in bold is no longer present on your website and my balance has taken a bit of a hit today (c.2.6%), to below my initial investment level. I presume this isn't coincidence, but I've had no email and there appears to be no explanation on the website re: the current status of the loan. Presumably you have had to escalate the situation? Please advise the procedures from this point and what your company will be doing to recover the capital, if indeed that's the stage we're now at? TIA.
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pom
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Post by pom on Mar 2, 2017 17:40:25 GMT
Hi littonowl , Just a bit of clarification on late-payments in case useful. There are two reasons we’d flag a loan in the system: either the borrower misses two interest repayments; or they fail to repay the loan on time. In the majority of cases, a failure to repay the loan on time is due to a sale falling through, or a refinance taking longer than expected. This sometimes occurs when lending money, and shouldn’t be a cause for concern. Octopus Property has a clear process for dealing with missed payments – a process that begins with emails and letters being sent to the borrower and their solicitor, notifying them of our intention to instruct solicitors. Experience shows that most of these loans are resolved with the threat of legal action, without having to escalate further. Please feel free to let me know if you have any further questions. Best, Vanessa Hi vanessaiman Please can you give us an update on the situation here, as the message highlighted in bold is no longer present on your website and my balance has taken a bit of a hit today (c.2.6%), to below my initial investment level. I presume this isn't coincidence, but I've had no email and there appears to be no explanation on the website re: the current status of the loan. Presumably you have had to escalate the situation? Please advise the procedures from this point and what your company will be doing to recover the capital, if indeed that's the stage we're now at? TIA. Hmm me too - tho I note my transactions show a capital repayment for the missing amount at 3pm today, but not clear where it's gone (can't find it showing as waiting for investment anywhere)
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Post by pedz14 on Mar 3, 2017 10:35:57 GMT
My account looks as it should be regarding the loan that was hold. The banner has now gone, and everything balances. I did have a repayment of capital yesterday which shows as a pending investment. Though I cannot be 100% sure, I don't think that it relates to the loan that had the issue as if I believe it is still showing under my investment tab.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Mar 3, 2017 11:13:14 GMT
I find this one of the most difficult platforms to understand. I would like to see a normal statement with debits and credits and a final balance.
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pom
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Post by pom on Mar 3, 2017 11:39:51 GMT
My "missing cash" is now showing as a pending investment, so my guess is it was down to the time of day - other loan repaid at 3pm but wasn't immediately moved to pending.
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