Would you still continue to invest in Lendy....

Me neither.   I'm still smarting from the 42% capital shortfall on AC's #330 secured property loan after disposal of the asset, with further recovery mainly dependent on a claim against the original valuer (uphill battle IMO). That is my largest p2p loss in ££££ terms.

However, I suspect that statement from sqh rings true at many p2p platforms as well, particularly at those that have morphed into property lending from other specialisms.

I think platforms have been far too slow in recognising that there is a systemic problem, and in adapting their processes accordingly.  Whilst I would prefer that the MS reports were being published, I am greatly encouraged by the tone and detail in the more recent fortnightly loan updates, which to me implies they now have a better understanding of the underlying risks.  For lenders in some of the distressed loans this is inevitably going to come across as closing the stable door after the horse has bolted, but if maintained could see Lendy morph back into everyone's favourite platform.   I see many parallels between AC's disastrous 2014 bridging loans, and some of the distressed Lendy loans. AC have learnt from those "disasters" and moved on, Lendy I believe is capable of achieving similar.

The existence of a provision fund in the context of lumpy property finance has always been IMO more unhelpful than helpful, and will have skewed the risk perception of at least some lenders.  The sooner it is ditched the better, and losses become totally transparent. Capital losses in p2p investing are inevitable, and disguising the fact is IMO not helpful.


Which is all a long winded way of saying providing Lendy carry on along the course they are currently sailing, I'll be continuing to invest in SOME of their loans (after my own DD) irrespective of the size of any losses declared on the currently distressed loans.

The default loan book is currently around £32 million and if DFL002 is added at -180 days (currently -146 days) it will add another £3 million.

Glos may indeed prove a miracle (we'll wait and see......) but most of those loans are small. IoW is large.

Actual capital losses may be some way down the line for many of these existing defaults: they can be stuck in legals for over a year.

The P2P market now has more players than it did when Lendy started out. This competition for investor funds may come into sharper focus just at the time when investors are feeling the pain of their first crystallised losses on Lendy.

For example, if MT and COL managed to offer a succession of good quality loans (better than they have offered recently) then despite Lendy's improved internal competence (so it has been alleged) this may not prevent funds draining away to competitors who may be perceived to have a sounder base.

Like many fellow investors, I got my fingers burned at ReBS (they basically threw existing investors under the bus when they realised they'd handed our money to a bunch of unscrupulous rogues). If L deal with defaults in the same way, I'm now better equipped to spot the warning signs and take appropriate action.

L is no longer as attractive a proposition as SS was but many of the changes would appear to have been imposed by the FCA. That said, the quality of L's communication is certainly a cause for concern so I've been reducing exposure to existing loans and only making small investments in new loans.

IMO, the jury's out. L have the opportunity to redeem themselves but until they do so I'll only be making token investments.

I am currently not investing any additional funds in LY and am withdrawing funds as and when they become available. 

As people have said and I agree, it’s not realistic to expect 12% returns and zero defaults forever.

The main thing that’s caused me to lose confidence is the poor communications and also by working my way through the default and suspended loans (some of which I’m invested in) and looking at what has transpired and the position they’re now in. Many are in a seemingly unrecoverable mess. Not just troubled but a total disaster. They are sat there rotting with really unhelpful updates. I just looked at PBL027 where the latest update states “we are continuing to chase the borrower for his exit strategy” even though this loan is 373 days overdue. Unbelievable. 

Confidence is everything and I’m afraid my confidence has been lost. I wouldn’t continue to invest nor recommend LY at the current time. 

good morning .just off to work had a quick look while having my tea from what i can see is we are starting 2018 with 68 live loans 37 of which have plenty in available loans and 15 of which are IA and heading for DEF IMO. 5 pipeline loans LENDY PLEASE ENSURE YOUR DD GDVs and VALUATIONS ARE ACCURATE for your loans. at the moment 21 loans in DEF i think 2018 will bring a whole load of work for the legal side of things here in lendyland.could any members help out with the maths and financials likely to show a lot of capital losses and no chance of interest.as i have said before the initial valuations and gdvs of nearly every loan are proving to have been very misleading and totally miles out of the real values.i hope lendy can prove us wrong in 2018 but i for 1 will not be investing any more until some of this backlog is cleared up.

When I started with Lendy about a year ago a good many loans were very much overdue but this seemed to make little difference to their attractiveness to the SM. At that time only one loan was labelled default, and even that was still available (if I remember correctly).
The big change came with the decision to define the overdue loans according to days overdue, with final default being set at 180 days with serious efforts being made to recover at least the capital.
I think Lendy have taken on board the need to act in our interests and pursue defaulters relentlessly. Happily I have avoided the worst , mainly historical cases, and intend to continue with Lendy as long as Lendy continue to improve their procedures

I thought I would really miss them but instead I continue to feel relieved that I almost (grr!) managed a total exit....
I thought I'd struggle to find other homes for my money but apparently not. Perhaps I might be getting a slightly lower rate overall (I really can't be bothered to addictively track XIRRs), but I am quite happy with that.
I am generally totally happy with the idea of loans overrunning or even ending up in default, and have quite a significant amount tied up in problem loans on other sites. Yet I feel far more comfortable with these - even where I have more tied up than I'd ever have put in a single Lendy loan.
Yep there are sure to still be some good loans but it all became a bit too much like hard work for me.