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Post by mrclondon on Mar 11, 2019 21:22:39 GMT
Well I waited until the end of the working day, but as the loan is live I thought it was fair to be reasonably speedy. support@ noted
Your reply re LTV was There are different ways of calculating loan to value ratios. We have provided our method
The method you use here is actually absurd:
Lets say there was a property valued at 100K, 1st charge 60K. Then 2nd charge 10K. By the method you use on this loan you would say that the equity was 40K, the 2nd charge being 10K, the LTV then being 25%, ie lower than the first charge. It's nonsense. (I hope I'm not making an idiot of myself here)
Noted that the debtors do seem correct to you and that bad debts or write offs are insignificant
The main problem from my viewpoint is that the 'asset' is a bit of a 'car boot sale', so really attaching an accurate LTV is hard and probably pointless. Moneything have clearly with a bit of smoke and mirrors made it look very good, it is an illusion, in reality 'good assets' are probably approaching 90% at best for realisation. I do however think that is enough to made it a viable investment in my case. Given the length of the loan, there should be plenty of opportunity to monitor progress. In truth the first instance of 'non performing' would sound a fairly loud alarm given the interest should be comfortably covered if things are on track. The exit strategy is fairly standard 'hope and pray', but that is inevitably the case. I have seen much worse. This might not read like it, but I think it is worth consideration, despite the obvious weaknesses. Lets be honest most people will see the LTV given and not query it at all. I suspect the only reason it has not already filled is a mass exodus of P2P lenders in general. Yep, a good summation of my own thoughts.
The mass exodus of P2P lenders is looking to be the critical issue this year. Historically a typical Lendy loan would have 1000+ participants even on a relatively poor offering, closer to 2000 on the stronger propositions. With those sorts of numbers bid limits or a pre-fund mechanism is a neccessity on loans such this that are (only) a few hundred thousand. Loans on FS have been slow to fill recently, but the quality of most of their new loans this year has been poor so not so clear cut on FS as to the reason.
If this is the case, then its a real shame that collectively the p2p platforms have trashed the reputation of their business model to the extent that a significant number of lenders have walked away, and advise others not to participate.
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r00lish67
Member of DD Central
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Post by r00lish67 on Mar 11, 2019 21:23:02 GMT
Well I waited until the end of the working day, but as the loan is live I thought it was fair to be reasonably speedy. support@ noted
Your reply re LTV was There are different ways of calculating loan to value ratios. We have provided our method
The method you use here is actually absurd:
Lets say there was a property valued at 100K, 1st charge 60K. Then 2nd charge 10K. By the method you use on this loan you would say that the equity was 40K, the 2nd charge being 10K, the LTV then being 25%, ie lower than the first charge. It's nonsense. (I hope I'm not making an idiot of myself here)
Noted that the debtors do seem correct to you and that bad debts or write offs are insignificant
The main problem from my viewpoint is that the 'asset' is a bit of a 'car boot sale', so really attaching an accurate LTV is hard and probably pointless. Moneything have clearly with a bit of smoke and mirrors made it look very good, it is an illusion, in reality 'good assets' are probably approaching 90% at best for realisation. I do however think that is enough to made it a viable investment in my case. Given the length of the loan, there should be plenty of opportunity to monitor progress. In truth the first instance of 'non performing' would sound a fairly loud alarm given the interest should be comfortably covered if things are on track. The exit strategy is fairly standard 'hope and pray', but that is inevitably the case. I have seen much worse. This might not read like it, but I think it is worth consideration, despite the obvious weaknesses. Lets be honest most people will see the LTV given and not query it at all. I suspect the only reason it has not already filled is a mass exodus of P2P lenders in general. Yep, about how I see it too. This plus recent encouraging recovery efforts on other loans and the forthcoming SM change has sold it to me, at least for a small stake. I'd rather the last £620k of security was constituted of more property instead, but hey-ho.
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shimself
Member of DD Central
Posts: 2,563
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Post by shimself on Mar 12, 2019 7:03:23 GMT
.... Moneything have clearly with a bit of smoke and mirrors made it look very good, it is an illusion... If the platform has decided it's ok to bamboozle us then who knows what they will get up to. "I'm out" Definitively
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ptr120
Member of DD Central
Posts: 1,202
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Post by ptr120 on Mar 29, 2019 12:01:46 GMT
1% cashback now added
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SteveT
Member of DD Central
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Post by SteveT on Apr 3, 2019 16:55:39 GMT
Just £70k remaining, filling considerably faster since the Wandsworth part-repayment last night.
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Post by Badly Drawn Stickman on Apr 3, 2019 22:09:33 GMT
Just £70k remaining, filling considerably faster since the Wandsworth part-repayment last night. The batteries seem to have gone flat again. Might need the Scotland loan repaying (next week?) to send it flying past the line, not sure there is anything else due soon. Having said that, I'm in no rush. Not sure how eager the borrower is.
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boundah
Member of DD Central
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Post by boundah on Apr 5, 2019 9:14:07 GMT
Now filled. I guess the Wandsworth repayment heaved it over the line.
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Post by carbonr1 on Apr 5, 2019 11:09:52 GMT
I wonder how many fingers are hovering over the sell button?
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Post by sirkillalot on Apr 5, 2019 12:43:41 GMT
The joys of cashback loans - always a fair number of flippers
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boundah
Member of DD Central
Posts: 368
Likes: 430
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Post by boundah on Apr 8, 2019 17:39:33 GMT
I wonder how many fingers are hovering over the sell button? Drawn down now so let's see...
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Post by eascogo on Apr 8, 2019 17:43:58 GMT
I wonder how many fingers are hovering over the sell button? Drawn down now so let's see... cashback will be credited to lenders tomorrow (9th) with trading on the SM to follow thereafter
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Post by spareapennyor2 on Apr 9, 2019 12:04:53 GMT
SM
now open
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ptr120
Member of DD Central
Posts: 1,202
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Post by ptr120 on Apr 9, 2019 12:11:27 GMT
...and over 56K already listed for sale
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iRobot
Member of DD Central
Posts: 1,680
Likes: 2,477
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Post by iRobot on Apr 9, 2019 12:51:54 GMT
...and over 56K already listed for sale Now over £75k but don't panic, £39 has been bought!  VSM launching should be an interesting watch. (Not least from within MTHQ with the increased polling activity by newly launched / enhanced bots.)
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Post by spareapennyor2 on Apr 9, 2019 14:12:24 GMT
now 100K on SM
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