I like amortising loans. Somewhat reduced risk and more monthly returns for reinvestment. I didn't think twice investing a modest amount in it.
I like amortising loans to the best, as it gives the borrower an incentive not to default longer the loan goes on, however no point if the security is not there and it is going to go into default in the first few months.
I know what you mean ie larger monthly repayment although strictly you'll be earning less monthly return as you're simply getting your own money back rather than continuing to earn the the headline loan rate but you do reduce risk by having less invested (and if you manage to invest repayments at the same rate in a different loan you would then maintain your return while also potentially reducing risk via diversification).
The posts on Birkenhead were pretty upbeat till until it went into default. Unsure if MT had more information then they supplied but Broadoak did. As the administrators report clearly shows.
Actually, that's not really true in my view. Last few updates were:
"Progress is still being made although it remains slower than expected" "Progress is being made albeit slowly..."we have told them we will be making fortnightly visits unannounced to check progress". "Work continues. The connection of utilities has been delayed, which is likely to push the expected completion date back, possibly into May"
Not my definition of upbeat..
Birk was meant to be completed Q4 '16 and almost immediately went over budget and time (leading to a technical default within 2 months of going live).
That did not really come across in BPF's updates either apart from some fairly reasonable sounding delays in Q2 '17 (with possible exception of monitoring to completion - I was redelpoying Ly so had to wait it out!).
Mine show a repayment date of NEXT Friday, not yesterday. ?
628 was/is 16th (today)
629 due 22nd (next Friday as you say)
628 was expected to have been repaid 7-10days after listing, so late Aug, with 629 the same day
Something appears to have happened in regards these 2 cars, but what that is would be anyones guess as MT haven't responded when I requested an update a week or so ago
They really seem far less inclined to engage with us now on the forum
I think we need to let the platform work through their processes.
On the day before a potential default I do not think we should be pressing them for updates on a public forum that may prejudice delicate talks (no matter the credit control procedures in unrelated industries).
We have seen with other recent defaults that MT will update as necessary with timely information via email and the online Support function.
SLA in particular showed a robust action from the platform which should hopefully facilitate a quicker resolution (certainly more so than some other platforms).
There has been a stay of action with a definitive cut-off, borrower seems to be still in pretty decent business so hopefully beginning of next week we will see more progress on another loan in potential difficulty.
I have to say this and recent week's updates seem to show Lendy are being a bit more active in the recoveries department. Lots of mentions of receivers being appointed and discussions happening before loans become due which will hopefully bear some fruit in the coming months. Borrowers that have their minds concentrated by the threat of a receiver rather than just stringing along Lendy's credit control might be more likely to scrape up the money sooner.
Agree, even the latest loans state conversations opened regarding refinance/exit and also some where procedure for vacant poossession has been included in the agreement as well as including sequestered rental incomes, hopefully the more recent cohorts will benefit from previous exepsensive lessons learnt (& tbf there is quite a jump from the default page to most of the live loans).
Looks like a lot of people agree with you. Stating the 'plan' was to knock down for a new build for me was a bit of a slight of hand. 100% loan to purchase (assuming at best land makes up rest of purchase price) + no pp = going nowhere.
Any chance of an update on this, its about (we expect) to go into default status
So it would be nice to have some idea on when we should expect some more detail on exactly what the administrators are upto
Legal process can be very slow, I think MT will update us at the next stage of administrator reporting, no need to distract investors with little detail. SM will stop when interest runs out (more than generous as this loan was as much defaulted as SLA).
Unlikely. If you look at the "Recent Investment" tabs you'll see that daily sales are rarely more than a few hundred £s and plenty more is likely to be added for sale if/when the queues shorten (lenders earn no interest whilst waiting in the SM queue). Unless there's an influx of new COL lenders, big cashback loans are best considered "buy and hold to term"
Thanks for that very useful comment. :-)
Wow! Going for cashback and then trying to exit the loan now seems like a strange strategy to me! You put your money up, get your cashback, and then sit, possibly for a very long time, on a queue while earning 0% on your money. I can see that it's great for the first folks to get their money onto the SM, but for those further back in the pack - well, they must surely regret the penny-wise-pound-foolish strategy. Of course, I could be wrong. I haven't studied the matter in any depth.
A BH at 4% would have 4 months to sell a 12% loan and still be quids in (longer if you factor in any tax saving too). But given the uneemly scramble and SM stasis afterwards the Coll version loses some shine for us S. Hitters.