Ukmikk
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Post by Ukmikk on May 3, 2017 11:02:20 GMT
Two new loans on sale, 0.85% & 0.65% I don't know how you catch these, I always seem to miss them! Thanks for the heads up, I'll keep trying!
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Ukmikk
Member of DD Central
Posts: 445
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Post by Ukmikk on May 3, 2017 8:57:10 GMT
My apologies Matthew , I was thinking of another platform, hence tried to remove my post before it was picked up (unsuccessfully) .
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Ukmikk
Member of DD Central
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Post by Ukmikk on Apr 20, 2017 17:14:55 GMT
Wow. Gone. In seconds..
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 20, 2017 17:12:25 GMT
£226 available on a jewellery loan.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 20, 2017 8:33:05 GMT
Update; my remaining deposit has finally been lent out. My initial £5k deposit split over 4 loans.
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Ukmikk
Member of DD Central
Posts: 445
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Post by Ukmikk on Apr 14, 2017 10:33:28 GMT
The optimum funding strategy seemed fairly obvious to me when I read up on BM policies so this is exactly what I did, coincidentally at the figures mentioned! Nice to see it confirmed here; however, nearly 3 weeks in I'm not exceptional in still being only 40% deployed (which doesn't bother me in itself), but there's a refusal by the publicity bods to officially recognise this despite stevefindlay 's admission on here it might take 56+ days.
However, my main concern now is the haste to jettison smaller investors; I can't see why there's much admin for established members unless account management is hands-on, which given the timescale suggests an imminent reduction in resources. Allied to the significant hike in fees, it suggests BM are financially constrained. I don't suppose there's any way to discern this until it's too late!?!
I reckon stevefindlay is just being prudent erring on the side a sensibly cautious Business growth plan, IMO he is looking to BM's long term strategic positioning, a far bigger picture and the financial security of his Investor base. Do you not think they should have been clear about their long term strategic positioning from the start? Is this a business without a business plan? This along with their rather cavalier attitude towards their existing customer base are food for serious thought before getting involved, which is a shame as it all looked very promising until recently.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 14, 2017 10:22:19 GMT
I've found that loans have not been split between very many loans on LW. My initial deposit of £100 was split in 3 with £34 the largest chunk. A subsequent deposit of £1500 was also only split 3 ways resulting in two loan chunks of £500+. I think the only way to avoid this is to drip-feeding smaller deposits. Got my fingers crossed that the borrower keeps up repayments over the three year term. Thanks for your reply, which confirms my experience is not unique. Cheers.
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Ukmikk
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Likes: 298
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Post by Ukmikk on Apr 14, 2017 10:17:29 GMT
Hello,
I have recently created an account and added 2 tranches of cash to LW, 2k + 3k one week apart, and waited patiently for funds to be loaned out. My expectation was that once I reached the front of the queue my cash would be diversified across a number of loans.
I have now has some funds loaned out, but I'm confused about the 'on loan' information I'm being given, which begins with this statement; "To mitigate risk, your money is lent to various borrowers in individual chunks. Below are the details of all your loan chunks. ".
However I have only 2 'loan chunks' listed, both at £1,700, each taken from one of the two deposits made. (The remainder is still not loaned out despite being at the front of the queue for several days now, which is odd.) Do these chunks consist of a number of parts of different loans or am I invested in only 2 individual loans which seems to contradict the statement above and is not what I would expect in terms of risk mitigation? It appears I have invested £3.4k in just 2 loans, not something I feel comfortable with.
I emailed LW to query this but received the following reply; "The aim of the algorithm used, is to allocate your money across multiple loans. However, in some occasions the algorithm may be allocating slightly larger chunks of money to one borrower. For example; If £25,000.00 is borrowed by one individual and then split across 25 lenders, then the algorithm has still diversified the amount being borrowed by one individual."
This response seems to suggest that the algorithm has diversified funds for the borrower, which is of course irrelevant. I replied accordingly but am yet to hear back from LW.
As a lender, should I reasonably expect my funds to be diversified across different loans or are my expectations misplaced? What are the experiences of other investors on this site? Maybe the LW rep could comment please?
Thanks in anticipation. Hi Ukmikk Thanks for your question. The number of loans to which your funds are assigned depends primarily on your overall account value. Generally, you will initially be matched with 3-5 loans for average account sizes. Larger account sizes are typically matched with a much greater number of loan chunks. Reinvested repayments become new loans so after a period of say 12 months you'll typically have many, many smaller chunks in your portfolio (the average number of loan chunks per lender is currently 87). The statement at the top of your loan portfolio is slightly unhelpful in that the diversification on LW consists of three parts, one of which being the number of individual loan chunks you hold. The second and most important layer comes via the Lending Works Shield, which would pay out whether you've got 1 chunk of £1,000 or 100 chunks of £10. Thirdly, if the Shield ever became depleted to such an extent that it was unable to compensate lenders for missed payments on their loans, a pooling event may be declared which would allow participating lenders to share losses pro-rata to their investment value, thus providing diversification across the entire participating loan book. Regarding the amount not loaned out despite being at the front of the queue - that sounds strange. If you'd like to DM me or email cs@lendingworks.co.uk we can look into that for you. The chunks you see in your portfolio are just that (they are not broken down further). In terms of the response you received, the matching algorithm is not seeking to diversify from the borrower perspective - perhaps this could have been explained better. Hope this helps. Hi Matthew , Thank you for your reply, which is more coherent than your support desk managed. At least I now understand what is happening, although I cannot agree that the shield counts as 'diversification' and indeed this strategy means that lenders are heavily dependant on the shield in the event of a default, which as you have pointed out is not guaranteed. I think you should consider re-wording your statement at the top of the loans page to clarify that loan chunks are not diversified. Even better explain this on your 'how it works' pages so as to manage the expectations of potential investors such as myself. I am planning further investment but my strategy for doing so will now be revised in light of this information, more along the lines of smaller amounts as suggested by theshape , which is less convenient for me and more of an admin burden for yourselves (multiple ISA transfers). Re my remaining deposit, some of this has now been lent and the remainder is now showing as matched, again (it has been before but returned to next day), so hopefully will be finally lent out next week. If it is not I will get in touch. Finally, I appreciate your input here on the forum Matthew, but have been disappointed with the customer support received. It was 2 days to answer my question and even then was unsatisfactory, clearly did not address the question and ignored the second part of the query entirely. Thus far I have not even received any response to my follow up. Hopefully you are in a position to feed this back to the relevant area with suggestions for improvement. Kind regards and a very Happy Easter.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 13, 2017 10:01:18 GMT
Hello,
I have recently created an account and added 2 tranches of cash to LW, 2k + 3k one week apart, and waited patiently for funds to be loaned out. My expectation was that once I reached the front of the queue my cash would be diversified across a number of loans.
I have now has some funds loaned out, but I'm confused about the 'on loan' information I'm being given, which begins with this statement; "To mitigate risk, your money is lent to various borrowers in individual chunks. Below are the details of all your loan chunks. ".
However I have only 2 'loan chunks' listed, both at £1,700, each taken from one of the two deposits made. (The remainder is still not loaned out despite being at the front of the queue for several days now, which is odd.) Do these chunks consist of a number of parts of different loans or am I invested in only 2 individual loans which seems to contradict the statement above and is not what I would expect in terms of risk mitigation? It appears I have invested £3.4k in just 2 loans, not something I feel comfortable with.
I emailed LW to query this but received the following reply; "The aim of the algorithm used, is to allocate your money across multiple loans. However, in some occasions the algorithm may be allocating slightly larger chunks of money to one borrower. For example; If £25,000.00 is borrowed by one individual and then split across 25 lenders, then the algorithm has still diversified the amount being borrowed by one individual."
This response seems to suggest that the algorithm has diversified funds for the borrower, which is of course irrelevant. I replied accordingly but am yet to hear back from LW.
As a lender, should I reasonably expect my funds to be diversified across different loans or are my expectations misplaced? What are the experiences of other investors on this site? Maybe the LW rep could comment please?
Thanks in anticipation.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 7, 2017 15:00:43 GMT
Blimey dan1 I don't know how you do it!? I'm checking in whenever I can, but frustratingly not managed to pick up any of these recent small ones ! Ahhh I see, I'll need to be quicker and/or luckier then! Thanks anyway for the heads up. oops sorry I quoted the wrong post, was meant to be a reply to dan1. Cheers guys.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Apr 7, 2017 14:58:57 GMT
Blimey dan1 I don't know how you do it!? I'm checking in whenever I can, but frustratingly not managed to pick up any of these recent small ones ! Ahhh I see, I'll need to be quicker and/or luckier then! Thanks anyway for the heads up.
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Ukmikk
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Posts: 445
Likes: 298
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Post by Ukmikk on Apr 7, 2017 14:40:25 GMT
£178.07 of a new loan at 0.85%. Thick and fast in the last two days! dan1 Is this auto or manual? Either way I'm not seeing it.
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Ukmikk
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Post by Ukmikk on Feb 16, 2017 9:38:57 GMT
Neil, thanks for this. A useful intro for the uninitiated such as myself. Will be interested to see if any of these can actually be purchased in an ISA. Cheers.
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Ukmikk
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Posts: 445
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Post by Ukmikk on Jan 19, 2017 12:35:04 GMT
stevefindlay - Having read your article, I am compelled to ask..Are you anticipating BM not obtaining full FCA Authorisation? And therefore not offering an IFISA? Thanks.
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Ukmikk
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Post by Ukmikk on Dec 24, 2016 20:16:34 GMT
Merry Christmas from a newbie to the forum (and to P2P in general).
What I would like for Christmas is a BM IFISA so I can join the party in 2017. Maybe you could add this to your priorities also?
Best wishes to all from Mikk. It's on the list! We are in discussions with the FCA as to how we can best offer this alongside our existing proposition. Hopefully something in place for this tax year... If you send your email to invest@bondmason.com, we can add you to the list to be notified of updates. Great news, thanks. Probably like buses they'll all come along at the same time
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