rocky1
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Post by rocky1 on Jul 11, 2019 17:15:08 GMT
clause 6.1 of our T@Cs ,change of practice on this loan, come on FS.the way you have brought this loan to the punters seems you are adopting LYs tactics. if lenders are not happy to fund this loan at £500 a pop then lower it back to £25 and see if you can fill it that way with interest paid from date of investment.to many lenders no longer trust FS and no longer lend to any loans,just waiting for all the defaulted/overdue rubbish that you brought to the platform to pay back and say good bye to FS.
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arby
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Post by arby on Jul 11, 2019 17:34:04 GMT
Agree with all the above - I am not in the business of giving FS an interest free loan of my money should this one not fill. I'm not a fan of the change and said so above, but this is no more of a loan to FS than just leaving some money sat in the holding account waiting for a decent opportunity. Your message says we're giving FS an interest free loan, but as they can't use the money it isn't a loan to them at all.
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adrian77
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Post by adrian77 on Jul 11, 2019 19:41:57 GMT
true but neither can I !
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thedog
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Post by thedog on Jul 19, 2019 12:05:25 GMT
Update by FS this morning.
"This is an update for the £346,250 loan (Loan No. 8124784050). The Borrower has agreed to pay £3,030 monthly to a Funding Secure Client Account. At the end of the term of the loan, the FundingSecure will pay the investors the accumulated interest payments in the client account, estimated to be £36,365.
We have now cancelled the requirement for monthly payments to be made into escrow and the Borrower will not be making payments to the Client Account, as described above.
This change is a change that will benefit the borrower, investors and FundingSecure. "
I said previously I thought the structure was flawed and would therfore not be investing but that the £3k a month was the best feature. And that's now gone. So a few thoughts: do any of the existing investors who invested on the basis of the £3k get to withdraw? obviously not.... if this term can be changed, after investors are locked in, what else could be?? how on earth this "..will benefit ... investors" is a mystery to me.
The 3k pm is not huge in the grand scheme of things but quite extraordinary to just pull it....
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Brainer
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Post by Brainer on Jul 19, 2019 14:13:57 GMT
Haven't looked into this properly so may have it wrong but my reading of that update is that the £3k p/m was going to an escrow account but is now going into the Funding Secure client account instead, which sounds better to me.
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thedog
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Post by thedog on Jul 19, 2019 15:46:34 GMT
The rather crucial word above WAS "not" in the sentence "....Borrower will not be making payments to the Client Account...". Above text was a direct copy and paste from the website, not my typing.
HOWEVER that important "not" has now disappeared from the "Loan Update" on the FS website so it now reads "....Borrower will be making payments to the Client Account..."
So yes I think you're right, that is a slight improvement in the terms, and they've amended the text that I had originally copied which had the opposite meaning!
LOL.....
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adrian77
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Post by adrian77 on Jul 19, 2019 20:13:20 GMT
Well this is a simple one to understand - not!
However as a matter of interest I just don't understand why the borrower (originally) would pay into an escrow account rather than the client account in the first place - Am I being thick?
I note
really - I know NI law is different to UK law but just what is the legal mechanism to do this - the tenants (hopefully!) have a contact with the borrower so how can this be retrospectively changed.
I am about to give up but I can't make sense of this one
I think this chap is borrowing £346K to :
- purchase a residential property that needs further work and is 30K over valuation
- to complete 3 industrial units which are only at floor height
- to repay a £110K BOI loan which I suspect is being called in
I estimate the current rental income (excluding this chap's other properties) is just over 50% of the FS loan. I may be wrong here but too tired to try and make more sense of this one.
I would guess this chap tried to borrow money at a cheaper rate against his portfolio but BOI refused and hence he has turned to FS
There is now way I am putting £500 into this one.
Interesting one to follow...
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Brainer
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Post by Brainer on Jul 20, 2019 1:26:42 GMT
The rather crucial word above WAS "not" in the sentence "....Borrower will not be making payments to the Client Account...". Above text was a direct copy and paste from the website, not my typing.
HOWEVER that important "not" has now disappeared from the "Loan Update" on the FS website so it now reads "....Borrower will be making payments to the Client Account..."
So yes I think you're right, that is a slight improvement in the terms, and they've amended the text that I had originally copied which had the opposite meaning!
LOL..... Just the usual level of FS attention to detail then 
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rocky1
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Post by rocky1 on Aug 16, 2019 11:21:09 GMT
Looks like this one has quietly passed its firm closing date of 12 noon today.51k out of nearly 350k wanted shows what lenders thought of this offering.what now FS? where do we go from here.
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Post by wilf on Aug 16, 2019 12:25:35 GMT
Must be a long lunch. Past 1 o'clock and my money still not returned.
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Post by seaninog on Aug 16, 2019 20:31:01 GMT
About 10 days ago this loan was 60% filled, then it dropped to 21% suddenly, then to 18% and today it's at 15% - how did this happen?
I thought when an investor commits to a loan they aren't allowed to pull out but has this rule changed in light of the new structure that meant investors didn't earn money on their investment until the date the loan drew down?
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rogerthat
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Post by rogerthat on Aug 17, 2019 10:13:30 GMT
About 10 days ago this loan was 60% filled, then it dropped to 21% suddenly, then to 18% and today it's at 15% - how did this happen? I thought when an investor commits to a loan they aren't allowed to pull out but has this rule changed in light of the new structure that meant investors didn't earn money on their investment until the date the loan drew down? In my experience (when I used to invest) if a loan hadn't filled and you asked them politely they will scrub it off but ive never put any money in on the new 'no interest till drawdown' regime. I suspect the reduction in funds resulted from cold feet
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Post by spareapennyor2 on Aug 19, 2019 8:36:56 GMT
update on site cancelled
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adrian77
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Post by adrian77 on Aug 19, 2019 9:51:33 GMT
And I thought Jamie Oliver blaming Brexit was a weak excuse - are we seriously supposed to believe that this loan was put to market before the legal contracts etc were finalised and at the same time the funding not only failed to fill but went backwards...
Anybody investing in this one will have had over 3 weeks of dead money - wonder if FS factor that into their advertised returns? That said this one looked a lemon to me so maybe FS have done the investors a favour!
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iRobot
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Post by iRobot on Aug 19, 2019 20:43:19 GMT
And I thought Jamie Oliver blaming Brexit was a weak excuse - are we seriously supposed to believe that this loan was put to market before the legal contracts etc were finalised and at the same time the funding not only failed to fill but went backwards... Anybody investing in this one will have had over 3 weeks of dead money - wonder if FS factor that into their advertised returns? That said this one looked a lemon to me so maybe FS have done the investors a favour! I think almost every platform I've used has cancelled a loan because of some legal hiccough or another, even FS have done it when sentiment was much better - see 1035531978 from 2016 or 3094561938. The update is possibly / probably spin, but 'complete the legal process' could refer to the loan not filling and FS not being able to fulfil their (legal) contractual obligations. Certainly shouldn't have come as a surprise to any investors as right from the off it stated: " This loan has a firm closing deadline for investors to invest of 12 noon on 16th August 2019 ... If the loan is not fully funded by the closing date it will be cancelled, with any invested funds returned, with no interest paid." Only those investing from the out set will have had 'over three weeks of dead money', but what surprised me was a) any one bothered investing at all on day one, as interest was never going to be earned until the 12th at the earliest and b) a few still put money in at the end even though the loan was clearly never going to fill. I'm only marginally less surprised that the new backers didn't step in as underwriters, it wasn't a particularly large loan. I will be more surprised if FS persist with this model though.
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