trevor
Member of DD Central
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Post by trevor on Nov 14, 2019 21:36:06 GMT
Does anyone have recent experience of investing new money and can tell me the ratio that goes to new loans as opposed to secondary. My wife and I have 4 accounts between us and I am withdrawing all returned cash. The money invested in 2017 is performing terribly 3.2%, but more recent 2018/9 8%. I'm considering reinvesting returned cash but only if the vast majority goes into new loans. I don't want to be picking up the loans from 2017.
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Post by Ace on Nov 14, 2019 22:17:11 GMT
There was a post on this here. Might be worth reading a few recent posts before making a decision. |
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optimist
Member of DD Central
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Post by optimist on Nov 15, 2019 0:36:38 GMT
57% New loans 43% old by value. Around 200 old compared to 65 new. Currently 6.5% annualised return which rose 0.2 today
Defaults are 1/3 of interest and fees 10% of interest earned with recoveries currently at 1% of the interest (3 % of default)
This account was opened around 4 months ago with a small amount and then 80% of the total added around 3 weeks ago so the default and recovery numbers, will increase Spread of new loans is 3 A+ 28 A 14 B 13 C 6 D 1E
Overall average interest rate on new loans 11.65%
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upperdeane
Member of DD Central
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Post by upperdeane on Nov 30, 2019 9:37:14 GMT
57% New loans 43% old by value. Around 200 old compared to 65 new. Currently 6.5% annualised return which rose 0.2 today
Defaults are 1/3 of interest and fees 10% of interest earned with recoveries currently at 1% of the interest (3 % of default)
This account was opened around 4 months ago with a small amount and then 80% of the total added around 3 weeks ago so the default and recovery numbers, will increase Spread of new loans is 3 A+ 28 A 14 B 13 C 6 D 1E
Overall average interest rate on new loans 11.65%
For anybody still investing new money with FC, it would be interesting to see the breakdown from Monday (% new loans v % discounted old loans) when the sales transfer fee is introduced.
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benaj
Member of DD Central
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Post by benaj on Nov 30, 2019 22:24:48 GMT
57% New loans 43% old by value. Around 200 old compared to 65 new. Currently 6.5% annualised return which rose 0.2 today
Defaults are 1/3 of interest and fees 10% of interest earned with recoveries currently at 1% of the interest (3 % of default)
This account was opened around 4 months ago with a small amount and then 80% of the total added around 3 weeks ago so the default and recovery numbers, will increase Spread of new loans is 3 A+ 28 A 14 B 13 C 6 D 1E
Overall average interest rate on new loans 11.65%
It makes me wonder how FC manages to increase the loan book size so quickly with this large portion of old loans for the new money. I suppose the 6.5% annualised return after 4 months is a reflection of defaults from the old loans. It reminds me the Z Plus I invested back in march 2017
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Stonk
Stonking
Posts: 735
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Post by Stonk on Dec 1, 2019 20:57:49 GMT
Does anyone have recent experience of investing new money and can tell me the ratio that goes to new loans as opposed to secondary. My wife and I have 4 accounts between us and I am withdrawing all returned cash. The money invested in 2017 is performing terribly 3.2%, but more recent 2018/9 8%. I'm considering reinvesting returned cash but only if the vast majority goes into new loans. I don't want to be picking up the loans from 2017.
If you only want brand new loans, consider switching lending off outside of business hours. You'll still get second-hand loans, put proportionately fewer.
Note that this will increase the time it takes to lend money out, and will likely render you ineligible for the John Lewis voucher promotion.
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trevor
Member of DD Central
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Post by trevor on Dec 2, 2019 22:17:28 GMT
Thanks Stonk
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Post by gravitykillz on Dec 3, 2019 23:14:40 GMT
Or you can stick your middle finger up at fc and transfer as much as possible to assetz.
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upperdeane
Member of DD Central
Posts: 493
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Post by upperdeane on Dec 6, 2019 21:15:35 GMT
Anybody investing since 2nd Dec able to give any info re % invested into new loans v discounted old loans?
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