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Post by munchydave on Oct 24, 2017 13:36:41 GMT
We need an honest update from FS, like so ... “We’ve stuffed this up. We didn’t monitor this at all. It turns out the borrower has told us a few porky pies and has run away with all your money. We of course lose nothing in these situations, so don’t worry about platform failure. We’ve appointed receivers, who will now attempt to sell the security at a fraction of what the VR said it was worth and at an even smaller fraction of the amount of your money that we’ve lent. We would have told you this sooner, but we had our heads buried in the sand”. And we will take the loss not you. Capital will be repaid in full. Is that a flying pig I see before me?
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Post by munchydave on Oct 23, 2017 14:23:02 GMT
Hi littleoldlady and munchydave, The returns should be (and hopefully are on LLI's platform) higher for loans deemed more risky, which among other things include an assessment of the borrower's credit history, the realisable value of the property and other. All investments, including P2P loans, are risky in nature and there is always the possibility of a total capital loss. We are trying to balance this by including loans of various risk profiles and have a couple of loans in our pipeline that have lower risk rating than this loan (and already had a number of loans which have a lower risk rating than this one). Regards, Filip Hi Filip. I understand that capital is at risk, but this risk can be limited if the valuation of the secured property is a true and reasonable reflection of current market values. Defaults do not bother me if after a default the property can be sold and all investor losses recovered. Short of a general downturn in property values then I would expect capital losses to be a rare event. As far as I know no investor has lost money on LLI's platform but issues with other P2P sites I invest with concern me. I will not name them, but I am sure you know them as well as me. Numerous loans over 6 months late and many in default only to see the property sold, if at all, for less than the loan taken out. This makes a mockery of valuations and the reported LTV ratios given. In short you are suffering from issues with other P2P sites. If the valuations given are correct and LTV kept below 70% then again I say capital losses should be a rare thing. I do want to continue to invest with you and hope confidence can be returned to the P2P market soon.
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Post by munchydave on Oct 23, 2017 12:08:59 GMT
Too risky for me. A pity as I have a lot of money in my ISA account (well actually temporarily withdrawn but not doing much, and I have to put it back or lose the tax shelter). I wish LLI would come up with some better quality loans albeit at a much lower rate. Same for me. Lot's of cash to invest but losses on other sites are making me very distrustful of all loans on offer on all P2P lending. No point in 17.5% if you loose your capital. Valuations are often nowhere near the recovered money after selling on defaulted loans. The simple fact is why should anyone pay high interest rates on a secured loan if there is plenty of equity in the property? I would rather invest at 8% on a very good and secure investment than risk all on this sort of loan.
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Post by munchydave on Oct 11, 2017 20:19:38 GMT
Good point, and I agree that investors with Lendy have suffered no losses to date. My concern is that the fund that is used to cover losses is not infinite and I note that about 50% of my investments are in default or suspended. I have never looked too close at the valuations given by Lendy but since reading many comments on this site I have checked a few valuations out, and at the best they seem optimistic. Lendy is not the only one with this issue. It looks to me that in the rush to get business many P2P sites do the same. It will take some time for me to reduce my exposure to Lendy as I intend to let all loans run there term. If I get some confidence back I may return.
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Post by munchydave on Oct 11, 2017 19:44:04 GMT
I am getting out of Lendy. I have zero confidence in their valuations. Defaults are not the problem if the defaulted property covers the losses but at the moment it dosn't
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