Worried SICK

I have 8 out of 27 NPL. However I am not worried sick, because of the nature of the loans. On some other platforms the borrower is simply gambling with borrowed money on the basis that if his scheme fails to work he can just hand over the 'security' and walk away, or he can default on a project and negotiate a debt write off on the grounds that a half finished development is extremely difficult to sell. In the case of the majority of loans on LI the borrower will be reluctant to default. Valuations of residential property should be quite accurate and in most cases a repossession sale should at least be close to the loan amount.

However it is entirely possible that I am living in a fool's paradise and that we are indeed doomed. It's a risky area to invest in and nobody should invest cash that (s)he cannot afford to lose.

I couldn't say offhand how many are late because really, what's the point in knowing? These type of loans will almost never pay back on the due date anyway and it's not like I can exit early. As/when a loss is declared I might start to think about it, but I won't "worry" about it unless it's rather a large one or there are signs of some failings in their recovery process, or maybe if a whole bunch come in at once....it's still not like I can do much about it til its done anyway.

If you're that worried about it stop putting new money in at least until some of them get resolved....and perhaps don't reinvest it on LI if the amounts concerned are making you worried sick - to me that is a sure sign you have overinvested in the platform or really aren't comfortable with the risks you're taking in general. Because when the economy hits the skids you'll have a lot more to worry about than loans being late. We all have different risk tolerances - I'm actually extremely risk averse, but the money I have invested happened to be cash I couldn't think what else to do with, I might start feeling very foolish if we have more Collaterals, or if a lot of defaults start turning into net losses, but it's not going to cause me much harm. If I was reliant on the cash for something else I doubt I'd be in p2p at all, and probably not the self-select sites.

I have 29 on schedule, 8 out of term (= approx. 1 in 5 or 20%) and 1 in enforcement. My understanding is that this type of loan often needs to be extended so I would tend to regard the 1 in enforcement as the only default. I'm glad you raised the issue though as it made me take a look. I have tended to go for lower LTVs recently. Hopefully that will give me better cover.

I've stopped reinvesting over six months to a year ago so now all my loans are in breach. I am not worried. So far I have received 100% of capital and interest with over 100 loans paying back. Over 40 of those overran, 18 for more than 3 months.

I agree with pom, in that if you (mynyddrob) are worried sick then you need to either do more research or stop investing in LendInvest and similar platforms. In fact you might want to consider avoiding all P2P.   

I am also comfortable remaining invested with Lendinvest. I have now had 75 loans successfully repay and zero that have moved to enforcement.



On the negative side the majority of loans (certainly those maturing in the last year) have gone past the initial expiry date and as has been pointed out on here there is no secondary market.



I think LI could do better at ongoing communication and initial detail on the featured properties. Rates are also comfortably below other self select platforms so they are never going to receive my largest allocation. They are also not a true p2p platform at all but an alternative fund structure. No issue with that model from my perspective given that the LI balance sheet.



Key for me is that, so far at least, the capital losses which are the real downside risk of P2P platforms have not been an issue with LI (contrast that with Lendy/MT for example). They have also proved themselves capable of generating sufficient volumes of new loan business over the medium term (again unlike MT/ABL for example).

I started with LendInvest around in Oct 2016.

So far, 17 loans have been fully repaid. Currently, I have 23 active loans, 19 on schedule and 4 out of breach. 0 capital losses yet.

Now FSCS protected !!!