coop
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Post by coop on Jul 27, 2018 10:41:32 GMT
So FS try to obfuscate it a little but when you rejig it it looks kinda bad. As far as I can see over 13% of all funds lent through FS are currently overdue; rising to 16% of all funds due by EoM (I assume this means funds due at/before EoM yet to be recieved?) Table below, all figures taken from www.fundingsecure.com/invest-with-us/loan-statistics lent to date Due by EoM 259,531,451 215,079,962 % of Lent to Date % of Due by EoM defaulted £9,651,806 3.72% 4.49% recovered £2,321,987 0.89% 1.08% pending £6,471,254 2.49% 3.01% lost £858,565 0.33% 0.40% Overdue £34,555,650 13.31% 16.07% Please forgive horrible formatting  |
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aj
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Post by aj on Jul 27, 2018 11:17:07 GMT
I wouldn't worry about the % of overdue loans, going overdue is pretty standard for property loans.
Instead I'd worry about FS's track record on recoveries and the quality of valuations on their 'securities'.
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coop
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Post by coop on Jul 27, 2018 11:26:43 GMT
I wouldn't worry about your first sentence too much.. if it we're not for the second sentence!
I think there's probably a fair chunk of that £34m FS has already resigned itself to not recovering; they're just keeping it out the defaults to massage the figures.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 27, 2018 11:50:31 GMT
I wouldn't worry about the % of overdue loans, going overdue is pretty standard for property loans. Instead I'd worry about FS's track record on recoveries and the quality of valuations on their 'securities'. There IS no quality. It's all quantity, as we know.
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mjc
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Post by mjc on Jul 27, 2018 13:19:26 GMT
I wouldn't worry about the % of overdue loans, going overdue is pretty standard for property loans........ I was invited to participate in loans with “ This is a six month loan secured against a .........”I expect most loans to be far longer, and renewed, many overruns, and just a FEW to fail. If they have not RENEWED or repaid by the end of the 6 month period, I have been misled. I wish I knew 6 months ago the true level of losses expected, I would have invested in a platform with a lower headline but a higher effective rate.
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mjc
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Post by mjc on Jul 27, 2018 13:53:05 GMT
When I am investing in another platform at 7% interest and a (good) score of 4, I have grave reservations now in seeking 12% - 13% with an “N/A” score. “ 4thWay Risk Score Calculated average losses before interest earned in severe recession and property crash
1 For savings accounts only. P2P lending cannot score 1
2 No expected losses.
4 Loss before interest earned of up to 5%
N/A Not enough data or history, or the risks are too high for a score”
www.4thway.co.uk/compare-ifisa/There seems quite a lot of data/stats for FS, so I would conclude the reason why is that the risks are too high. |
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Post by fisherman on Jul 27, 2018 14:03:24 GMT
Mjc, those are exactly my feelings.
I started investing with FS about 9 months ago, and with a few exceptions, I expected all loans to either repay, renew or be defaulted and recovery action commenced at the end of the 6 month loan period. That has not been my experience.
I understand that there may well be exceptions in the case of large, partially completed construction projects, where a sale may not recover the total loan. However this cannot be said for overdue loans on cars, boats and artworks, amongst others, where FS appear to be taking no effective action to recover the debts whilst interest increases. They might receive more understanding from the lenders if they provided open and honest updates instead of their usual inaccurate and untruthful garbage. I do not believe a word they say.
Accurate valuations in the future would help.
As I have mentioned before I have sold my FS investments barring 7 which are overdue or defaulted. Hopefully I will see some of the money one day. I will not be returning!
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paulb
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Post by paulb on Jul 29, 2018 15:32:19 GMT
I've had a quick look in the loan history at the loans which were due to be repaid in the first half of this year (i.e. those taken out in the latter half of last year, assuming a 6 month term) and found that of the £64.5M due to be repaid, only £40.5M actually was - around 63%, meaning that, even after allowing an extra month to repay/renew, almost 40% of those loans are overdue.
Of the £24M overdue loans, only £0.5M (2%) has been defaulted - I know that some are only overdue by a month, but some are overdue by over 6 months, more than doubling the term of the loan - surely if a borrower doesn't intend repaying within 6 months of the loan ending, they should be expected to renew the loan?
Of the £0.5M defaulted loans, almost £7K has been recovered - that's well over 1%!
As I said, it was only a quick look, so apologies if I've miscalculated anything.
Paul.
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adrian77
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Post by adrian77 on Jul 29, 2018 17:11:54 GMT
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