What do you plan to do with your Lending Works portfolio?

 I think the platform now has a reasonable offering going forwards, and I think it's reasonable to assess the PF quarterly and adjust the rates accordingly. However, I decided to withdraw 90% of my original capital for the following reasons:

1) I'm angry that LW have retroactively changed the contract terms. In my view, they made a mistake by raising growth rates from 6.0% to 6.5% when they should have been aware that the PF could not support this. They also reacted far too late when many posters on here were pointing out that their PF was unsustainable. Without these 2 mistakes they might well have been able to honour past contracts and bring in the new regime for new contracts only. At the very least it would have required a less dramatic reduction.

2) I was concerned that there would be a liquidity issue. It's clear that they will suffer extra withdrawals due to these changes, and they are likely to attract less new money for a while at least. I was caught out by not reacting quickly enough when FC took a liquidity nosedive and thought it reckless to risk the same with LW. To be fair, this concern has not been born out yet; my withdrawals from last Friday and from early yesterday both completed today.

3) I wanted to add funds to invest on another platform, so reducing here in the circumstances was an obvious choice.

As I said, I don't think there is anything wrong with the new regime. I would have been happy if it was in place when I originally invested. I may well add more funds again in the future if it works out ok.

On a separate point Matthew, I was prevented from requesting a withdraw from my Classic account until the ISA account withdraw had completed. This felt like an unnecessary restriction.

I agree with you Ace, they must have known the real situation for ages.

Why did they raise the rates and lure lenders into a long queue for a rate they knew they would not be able to honour?

think you may have answered part of this question before - but is institutional money covered the same way by the shield and secondly did you seek out their opinions on your changes first(assume they have the same rates or the equivalent cut) as wondering how its been received?

I haven't ticked anything yet because I am still deciding. I would like to know what my average interest rate is likely to become on 1st Jan 2020, before I decide. Would it be possible for LW to show the users predicted average rate?



E.g. where you have:



The weighted average interest rate on your active loans is x.xx%.



You could add something like:



On 1st Jan 2020 this is currently predicted to change to x.xx%.

Does the run off option make sense for an ISA account? Run off will mean small amounts of cash becoming available to transfer on an almost daily basis for 5 years. How is this situation managed given the awkwardness of ISA transfers? 

Is it possible to arrange for available cash to be automatically electronically transferred to a cash ISA on a regular basis?

So, ive thought long and hard about this and have just phoned LW to clarify a few points.., mainly that the loans remain in a collective as the new rules seemed unclear on this and that I was right in assuming the 6.5% rate on my present loans will become flexible and drop, the answer was yes to both..   I will say LW were very helpful and answered the call within seconds so customer service seems A1..

I'm diversifying investments at the moment, stocks n shares forming a bigger part but I think overall higher risk then p2p

I can get 2% in a 3 year savings account. but still a big shortfall on p2p 

I dont like the way LW put up their rates the way they did, I thought it wasn't going to be sustainable and would much preferred it to stay at around 5 to 5.5% and I don't think this mess would have happened, perhaps they were trying to grow their way out of trouble, but i've enjoyed good growth for the period..  At least it seems someone had taken the bull by the horns now and we will have to pay for those high rates but I don't mind that as long as LW is a viable business..  I would much rather be earning 4% then 2% but I have to ask myself the big question..

Is LW viable?

If the answer is no I need to get my money out and ive been debating this for a month or so now suspecting that the coarse it was on was just not viable however with the new changes in place that somewhat changes my opinion as long as everyone is willing to accept lower growth..  I think LW will do what is needed now and I believe its one of the better p2p platforms with a future. I think we have got to accept the good days are gone and lower rates will be the norm for a while and with ratesetter at 4% and zopa in real terms at 3.7% in my own investments its starting to to reflect the market risk.  Yes I believe LW in sustainable in the long term but might have to accept lower rates from time to time, and this is one of those times..