mogish
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Loanpad
Jan 20, 2021 16:02:06 GMT
via mobile
Post by mogish on Jan 20, 2021 16:02:06 GMT
One last thing.... it seems I have invested in quite a few overdue no ICF loans and 1 default.
Is this normal.
I've already experienced this on another platform and keen to avoid.
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Post by Ace on Jan 20, 2021 16:12:46 GMT
One last thing.... it seems I have invested in quite a few overdue no ICF loans and 1 default. Is this normal. I've already experienced this on another platform and keen to avoid. Yes it's perfectly normal. "No ICF" means that interest is still being paid by the borrower but the loan is beyond its initially agreed completion date. Quite normal for development loans, especially given covid delays. You can click on the link in the My Loans table for more info and history of each loan. The one that has defaulted is because it's more than 6 months late. There really is nothing to worry about here as Loanpad's first charge share of this loan is less than 20% of the expected selling prices. The interest for this one is being paid by the ICF. If a loss was expected on any loan then new money would not be allocated any of that loan. Anyone holding it would be stuck with it until the loan was resolved.
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mogish
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Loanpad
Jan 20, 2021 17:37:55 GMT
via mobile
Post by mogish on Jan 20, 2021 17:37:55 GMT
Once again thanks Ace. Much appreciated.
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Greenwood2
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Post by Greenwood2 on Jan 20, 2021 20:14:26 GMT
One last thing.... it seems I have invested in quite a few overdue no ICF loans and 1 default. Is this normal. I've already experienced this on another platform and keen to avoid. Inevitable in the way the platform works, most people seem happy with this, not sure myself. I have sold out with increasing numbers of loans in some difficulties.
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Post by Ace on Jan 20, 2021 20:56:26 GMT
One last thing.... it seems I have invested in quite a few overdue no ICF loans and 1 default. Is this normal. I've already experienced this on another platform and keen to avoid. Inevitable in the way the platform works, most people seem happy with this, not sure myself. I have sold out with increasing numbers of loans in some difficulties. There were 7 out of 40 loans who's status was flagged as anything other than Live when this was last discussed in Dec. It now stands at 6 out of 41. So certainly not increasing over that time frame. This currently represents 14.4% of the funds on the platform. The only difficulties that we are aware of is that they have run past their originally expected completion dates. This is not unusual for development loans, and especially so given covid delays. The only one that's currently in a default state (i.e. more than 6 months late) has an LTV of less than 20% of the expected selling prices.
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Greenwood2
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Post by Greenwood2 on Jan 21, 2021 8:20:09 GMT
Inevitable in the way the platform works, most people seem happy with this, not sure myself. I have sold out with increasing numbers of loans in some difficulties. There were 7 out of 40 loans who's status was flagged as anything other than Live when this was last discussed in Dec. It now stands at 6 out of 41. So certainly not increasing over that time frame. This currently represents 14.4% of the funds on the platform. The only difficulties that we are aware of is that they have run past their originally expected completion dates. This is not unusual for development loans, and especially so given covid delays. The only one that's currently in a default state (i.e. more than 6 months late) has an LTV of less than 20% of the expected selling prices. As discussed before (in Dec?) I'm probably more concerned about the potential exposure of the partner than individual lenders, but anyway I decided for 4% the potential risk was too high and sold out. It will probably be fine, but platform risk has been shown to be the biggest risk in P2P, so I'm looking far more carefully at potential problems for platforms these days, rather than just loan risks. I agree development loans often over run and often require more funding and that is not necessarily a problem, but I have been caught in a few (on other platforms) that started as delayed and then failed, sometimes returning virtually nothing to lenders, so I would not willingly be buying into a loan that was already showing some stress, unfortunately on Loanpad you have no choice.
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Post by Badly Drawn Stickman on Jan 21, 2021 9:43:15 GMT
There were 7 out of 40 loans who's status was flagged as anything other than Live when this was last discussed in Dec. It now stands at 6 out of 41. So certainly not increasing over that time frame. This currently represents 14.4% of the funds on the platform. The only difficulties that we are aware of is that they have run past their originally expected completion dates. This is not unusual for development loans, and especially so given covid delays. The only one that's currently in a default state (i.e. more than 6 months late) has an LTV of less than 20% of the expected selling prices. As discussed before (in Dec?) I'm probably more concerned about the potential exposure of the partner than individual lenders, but anyway I decided for 4% the potential risk was too high and sold out. It will probably be fine, but platform risk has been shown to be the biggest risk in P2P, so I'm looking far more carefully at potential problems for platforms these days, rather than just loan risks. I agree development loans often over run and often require more funding and that is not necessarily a problem, but I have been caught in a few (on other platforms) that started as delayed and then failed, sometimes returning virtually nothing to lenders, so I would not willingly be buying into a loan that was already showing some stress, unfortunately on Loanpad you have no choice. What is concerning me equally as much at the moment Loanpad is 'flavour of the month'. I have seem far too many posts lately where it is being talked of like a savings account, always a bad sign. Firstly it suggests a further rate reduction becomes tempting and secondly that loan generation needs to increase to accommodate. Currently it is fine, but all too familiar warning signs should never be totally ignored. A sensible informed level of platform exposure has to be a lesson we have learnt.
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mogish
Member of DD Central
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Loanpad
Jan 21, 2021 10:10:41 GMT
via mobile
Post by mogish on Jan 21, 2021 10:10:41 GMT
As discussed before (in Dec?) I'm probably more concerned about the potential exposure of the partner than individual lenders, but anyway I decided for 4% the potential risk was too high and sold out. It will probably be fine, but platform risk has been shown to be the biggest risk in P2P, so I'm looking far more carefully at potential problems for platforms these days, rather than just loan risks. I agree development loans often over run and often require more funding and that is not necessarily a problem, but I have been caught in a few (on other platforms) that started as delayed and then failed, sometimes returning virtually nothing to lenders, so I would not willingly be buying into a loan that was already showing some stress, unfortunately on Loanpad you have no choice. What is concerning me equally as much at the moment Loanpad is 'flavour of the month'. I have seem far too many posts lately where it is being talked of like a savings account, always a bad sign. Firstly it suggests a further rate reduction becomes tempting and secondly that loan generation needs to increase to accommodate. Currently it is fine, but all too familiar warning signs should never be totally ignored. A sensible informed level of platform exposure has to be a lesson we have learnt. Totally agree re platform exposure. Prob like many investors, I have reduced the amount of cash by a large percentage. Admittedly I got a bit carried away with p2p and invested too much over many platforms, quite a wake up call when things go potentially bad. Luckily (apart from LW)I've managed to drawdown safely without too much cost in fees. My £100 dabble on LP wont hurt . Let's see if all is still well hopefully in 6 months.
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Post by Ace on Jan 21, 2021 13:10:16 GMT
A bit of a shake-up in the loan book today. 2 loans repaid and 3 new loans started.
One unwelcome trend is that the average LTV has risen to 40%. Still acceptably low for me, but becoming a concern for the rates paid. Perhaps it should be considered an alternative to a rate reduction that was mooted above. I would have thought that many of the rate boosts provided by the Loanpad+ feature would be coming to an end (mine certainly are), so that should help them maintain their margin without needing to cut rates further.
As far as treating the account like a savings account goes: I think this is perfectly sensible for an experienced investor. I'm certainly very happy to do this. I guess the key here isn't really experience but an awareness and acceptance that, despite their unblemished record so far, liquidity can not be relied on. So, I'm happy to treat it as a high interest savings account with full knowledge that my funds could become stuck at any time and for any length. I personally keep sufficient funds in Premium bonds that can be used if liquidity here does dry up. I've previously used the same technique with AC access accounts and with GS, both of which did suffer a complete lack of liquidity. This wasn't a problem for me as I had sufficient liquidity elsewhere. GS has now repaid in full. AC access accounts are becoming closer to trading at par again, so I may move some of my Loanpad funds back there in future to spread the liquidity risk again.
For clarity, I'm not suggesting that inexperienced lenders treat Loanpad as a savings account. It's crucial that the underlined point above is understood, and also that there is a risk of capital loss, albeit my opinion is that this risk is acceptably low for me.
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mogish
Member of DD Central
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Post by mogish on Jan 21, 2021 13:21:14 GMT
Awareness, acceptance and managing risk is the key indeed to avoiding potentiall serious financial pain. Personally this forum has provided me with really helpful information and opinions in order to adjust investments as required.
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nyneil
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Post by nyneil on Feb 5, 2021 12:21:48 GMT
One unwelcome trend is that the average LTV has risen to 40%. The steadily increasing LTV is my biggest concern with Loanpad. I've been drip feeding returns from Ratesetter & GS into LP, but as their new loans are trending at 50% LTV, I'm feeling uncomfortable about being overweight in LP. So far, they have chosen their loans well, but as we've seen elsewhere, distressed sales of part completed developments, return a pittance to the investors. After administrator's fees etc. 50% would be an optimistic return. I do hope that LP note their investors' concerns and look for a greater number of quality loans at lower LTV rather than fewer at high LTV. Meanwhile, I need to find somewhere else to stash my cash.
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Post by Ace on Feb 8, 2021 12:35:30 GMT
Total funds on Loanpad platform crossed the £20m mark for the first time today. Congrats to LP. One drawback of the expanding platform is that their daily algorithm is taking ever longer to run. It was offline until 12:25 today, presumably 25 minutes off line as it usually starts at noon. Loanpad, are there any plans to upgrade the platform so that this process takes less time? Otherwise, at the current rate of expansion, it could soon be offline for over an hour per day. |
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withnell
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Post by withnell on Feb 8, 2021 12:44:51 GMT
Total funds on Loanpad platform crossed the £20m mark for the first time today. Congrats to LP. One drawback of the expanding platform is that their daily algorithm is taking ever longer to run. It was offline until 12:25 today, presumably 25 minutes off line as it usually starts at noon. Loanpad , are there any plans to upgrade the platform so that this process takes less time? Otherwise, at the current rate of expansion, it could soon be offline for over an hour per day. at the same time as this can you have a look at the withdrawal request workflow also - most times I have to wait until after 1pm to request a withdrawal as otherwise the request hangs at the "processing" stage then fails out. Not had any issues with the speed of withdrawals in general (thank you!) but worth considering along with overall platform downtime
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Post by Loanpad on Feb 9, 2021 13:38:10 GMT
Total funds on Loanpad platform crossed the £20m mark for the first time today. Congrats to LP. One drawback of the expanding platform is that their daily algorithm is taking ever longer to run. It was offline until 12:25 today, presumably 25 minutes off line as it usually starts at noon. Loanpad , are there any plans to upgrade the platform so that this process takes less time? Otherwise, at the current rate of expansion, it could soon be offline for over an hour per day. at the same time as this can you have a look at the withdrawal request workflow also - most times I have to wait until after 1pm to request a withdrawal as otherwise the request hangs at the "processing" stage then fails out. Not had any issues with the speed of withdrawals in general (thank you!) but worth considering along with overall platform downtime Hi Ace and withnell thanks for the comments. We are currently upgrading part of our software so all of that should soon cease to be an issue. It is too early to say exactly when this will be, but we hope by Q3 this year. This will also enable us to reduce the £10 multiples to 1p and provide various other features moving forward.
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Post by df on Feb 11, 2021 17:48:47 GMT
A bit of a shake-up in the loan book today. 2 loans repaid and 3 new loans started. One unwelcome trend is that the average LTV has risen to 40%. Still acceptably low for me, but becoming a concern for the rates paid. Perhaps it should be considered an alternative to a rate reduction that was mooted above. I would have thought that many of the rate boosts provided by the Loanpad+ feature would be coming to an end (mine certainly are), so that should help them maintain their margin without needing to cut rates further. As far as treating the account like a savings account goes: I think this is perfectly sensible for an experienced investor. I'm certainly very happy to do this. I guess the key here isn't really experience but an awareness and acceptance that, despite their unblemished record so far, liquidity can not be relied on. So, I'm happy to treat it as a high interest savings account with full knowledge that my funds could become stuck at any time and for any length. I personally keep sufficient funds in Premium bonds that can be used if liquidity here does dry up. I've previously used the same technique with AC access accounts and with GS, both of which did suffer a complete lack of liquidity. This wasn't a problem for me as I had sufficient liquidity elsewhere. GS has now repaid in full. AC access accounts are becoming closer to trading at par again, so I may move some of my Loanpad funds back there in future to spread the liquidity risk again. For clarity, I'm not suggesting that inexperienced lenders treat Loanpad as a savings account. It's crucial that the underlined point above is understood, and also that there is a risk of capital loss, albeit my opinion is that this risk is acceptably low for me. I very much agree. The pioneer (Zopa) was designed to look like savings account and many followed that model. Nothing wrong with this as long as "savers" are warned of the risk involved (which has always been the case).
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