SteveT
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Post by SteveT on Jan 27, 2018 11:02:28 GMT
Or better still IMO, oblige lenders to hold to term in order to get the cashback (ok - it becomes a "bonus" rate rather than "cashback") - at least that would prevent the liquidity problems. That's not going to have anything like the same effect on filling big loans though. The whole point of cashback is to encourage lenders to act like defacto underwriters, taking bigger stakes than they'd otherwise want to hold to term in return for an upfront "fee".
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kermie
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Post by kermie on Jan 27, 2018 11:11:17 GMT
Or better still IMO, oblige lenders to hold to term in order to get the cashback (ok - it becomes a "bonus" rate rather than "cashback") - at least that would prevent the liquidity problems. That's not going to have anything like the same effect on filling big loans though. The whole point of cashback is to encourage lenders to act like defacto underwriters, taking bigger stakes than they'd otherwise want to hold to term in return for an upfront "fee". Perhaps so - 2% cashback is the largest I've seen on any platform. FS offer up to 5% (p.a. - effectively ~2.5% over 6 months) bonus for larger loans - they've all but stopped bothering with cashback, and for me this works better given the value I place on liquidity. It could be worse - at least the cashback-carpet-baggers who are selling immediately are losing interest whilst it's sat on the SM (not that I agree with that principle either tho!...whilst the lender's capital is at risk then they should be earnin')
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SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
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Post by SteveT on Jan 27, 2018 11:13:34 GMT
Perhaps so - 2% cashback is the largest I've seen on any platform. It's actually half the level (4%) that COL were paying to the biggest hitters on some previous large loans!
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hazellend
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Post by hazellend on Jan 27, 2018 13:30:58 GMT
Property partner have given me 5% cash back 4 times now.
It’s net 3% because they take 2% of investment up front
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Post by df on Jan 27, 2018 15:20:59 GMT
i first got into Lendy as i was aware of a friend who used it, and has successfully for a few years, and in the region of £10k, but for awhile all i did was 'play around' to see how it worked, how easy it was to sell, get access to funds etc, and because i just played with it for several months i have my own strategy if you will and as a result it's taken me awhile to find loans that i like and invested in those ones. I'm also confident in the ones i've invested in that if i wanted the cash i could sell the loans within an hour or so and have the cash withdrawal request put in on the same day. I have an account created on AC, which i am tempted to try out some manual investing, using a small amount for say 6months and do a similar thing to lendy, or if i'm not so worried about access to the cash then start lending to loans i know i might not be able to sell instantly. The one thing i've noticed about collateral is a lot of loans against items like silver or diamonds, but all the loans i see how against properties, how do they release the loans against items, is it simply whoever gets there the quickest? and same question goes for moneything, are the loans just first come first served kinda thing? Having a look at growth street seems an easy to navigate and understand website and not much to it, very hands off and will probably dip a toe. With AC, make sure you select "invest idle funds" on QAA account so that any waiting funds earn you 3.75%. Selling loans on AC is much easier than on Lendy. I usually hold to term, but when I needed to sell it never took more than one day. Collateral used to specialise on bling loans, but about a year ago moved in to property. There was only about 3 or 4 new bling loans in past 6 months and at lower (10%) rate. The old bling loans get renewed, but it is very difficult to get any parts because current investors tick renewal box. I still have many of those and always keep the renewal option on. Similar for MT. I can't even remember when I've seen a new bling loan. Generally speaking, if you sign up to Col or MT now - you will be investing in the same type of loans as with Lendy. GS is a relatively new one. It is hands off and easy to use, as you said. The rate is currently 5.3%, it might go down in future, but it is easy to exit because the loan term is only one month. They have cash drag reputation, but in my experience, since they've changed the system returned funds get invested within 1 or 2 days.
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