This was more a question about it feeling fair rather than the financial cost, a relatively minor detail compared to the benefit of the BBG which I will continue to use.
Regarding the risks being clear, I'd suggest adding them to the page "https://www.rebuildingsociety.com/buyback-guarantee/"
Yes, the purchasers of BBG MLs for O**G are unlucky, as most will have lost money, whereas the sellers have collected a premium without having the liabiliy that this payment is intended to cover.
If a loan is discounted I look for a reason and expect a higher risk. If I buy at a premium I expect something better for my money so I don't see it the same way as refunding for a negative premium as there's an awareness of the ML value.
As a seller of a BBG, if I were to make a smaller profit (but still some profit) but at the same time I don't have an ongoing liability for the loan, that would seem a fair deal, on the odd occasion that it happened.
The negative effect on the seller therefore seems minimal, whereas the buyer avoiding losing money, and breaking even instead, may have more effect for the BBG buyer.
Keep up the good work. On the loan mentioned it looks like we'll get all our capital back which is the main thing.
The repurchasing process is executed automatically, without admin intervention. So in the event a wind-down, the guarantees would continue to be hnoured, but there would be a restriction applied to selling microloans with a BBG.
rebuildingsociety.com takes no margin on the loans it originates, so 100% of the interest paid by borrowers is relayed onto lenders. The first platform to introduce the P2P Lending BuyBack Guarantee to help de-risk p2p lending.