IFISAcava
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Post by IFISAcava on Oct 30, 2020 13:34:07 GMT
Why are they so averse to a secondary market? Its making me even more suspicious. not much appetite for negative interest rates I am afraid
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keystone
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Post by keystone on Oct 30, 2020 14:10:11 GMT
So will they be giving us a tax refund for previous years interest that they are now grabbing even more of? Or can we deduct the negative interest amount from the total interest in tax returns?
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keystone
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Post by keystone on Oct 30, 2020 14:36:50 GMT
"To account for the impact of COVID-19, the period of negative interest rates will be phased, being more severe for 3 months, then easing after that."
So you could have invested for 4 years with returns of 6-6.5%pa during 2016-2019, say a total of 25% return.
Then Lending Works slap negative interest rates of -100% during the first 3 months of 2021, ie a quarter of the year up to the end of March 2021 and you lose the 25% return you have made over the previous 4 years 2016-2019 and 0% for 2020.
Then Lending Works still claim no capital losses!
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benaj
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Post by benaj on Oct 30, 2020 14:38:51 GMT
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macq
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Post by macq on Oct 30, 2020 14:46:43 GMT
So, we now have "negative interest rates" spun as "no capital loss". Remarkable. I guess if you take away previously earned interest, it doesn't count as a loss? I am looking forward to seeing my reducing balance and feeling relieved that it isn't a capital loss. Not buying it will be covered by the "projected" 3.8% annualised return then? 
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Post by oppsididitagain on Oct 30, 2020 14:51:26 GMT
We are now hopefully approaching completion of the significant investment into Lending Works that we originally announced in July. After completion, we will have a new principal shareholder that intends to invest in the business to make it more stable and resilient for the long term.
Surely the 'investor' should be investing to cover the losses not us ?
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IFISAcava
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Post by IFISAcava on Oct 30, 2020 15:36:57 GMT
So, we now have "negative interest rates" spun as "no capital loss". Remarkable. I guess if you take away previously earned interest, it doesn't count as a loss? I am looking forward to seeing my reducing balance and feeling relieved that it isn't a capital loss. Not buying it will be covered by the "projected" 3.8% annualised return then? That's a brilliant idea I will not buy any Lending Works investment I will therefore not have to pay negative interest That wlll therefore have saved me whatever the negative interest rate is. I get a huge return by not investing in LW! Very happy now.
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mogish
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Post by mogish on Oct 30, 2020 16:49:29 GMT
Why does this not surprise me. Now that alternative investors are available, retail mugs are no longer required hence we can rip them off with more waffle but bottom line is once again we lose money.. Every excuse going but no admission they simply cant recover debt or operate a business successfully.
Quite a pattern with p2p platforms.... never again.
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Post by tommycatz on Oct 30, 2020 16:54:25 GMT
Ironically, October was a good month for repayments. I had 5 decent payments, around 4% of my balance in March. So did my wife.
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mogish
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Post by mogish on Oct 30, 2020 16:55:06 GMT
We are now hopefully approaching completion of the significant investment into Lending Works that we originally announced in July. After completion, we will have a new principal shareholder that intends to invest in the business to make it more stable and resilient for the long term. Surely the 'investor' should be investing to cover the losses not us ? I'm so fuming...do they honestly expect anyone else to invest with them? Surely they should have designed the business to be more stable in the first place. To be honest if I had been invested for a few years and had returns then I might accept this more, however I only going tail end if 2019 so have gained nothing. Should have bailed in December when the warning bells were ringing... what a mug to place trust. Rant over.
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Post by frankfurt13 on Oct 30, 2020 17:00:36 GMT
Quite a pattern with p2p platforms.... never again. Diversified stock market investment is safer with better returns in the long run. Like you say, p2p ... never again.
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Post by jono75 on Oct 30, 2020 17:50:35 GMT
Quite a pattern with p2p platforms.... never again. Diversified stock market investment is safer with better returns in the long run. Like you say, p2p ... never again.
This makes my Marcus 0.7% easy access is looking pretty good now, just got that for liquid cash. Thankfully after all the fun earlier in the year I withdrew all I could. LW had invested me straight into some bad loans but the last big one they (surprisingly) paid up last week from the shield, so I was only in LW for two months before I cashed out. Negative interest rates is a first I know of in P2P, they must be so proud. No info on the rate in the email unless I missed it. Can't see me coming back.
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mogish
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Post by mogish on Oct 30, 2020 19:14:25 GMT
Yip lending works.... for them , not us.
Fair... if you are a borrower
Simple.. easiest way to give your money away.
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Post by EJi on Nov 5, 2020 13:18:10 GMT
So the site says "We will be required to adjust lender rates further using the existing Lender Rate Adjustment mechanism, resulting in a period of negative interest rates to divert more funding to the Shield to cover the loan defaults that we expect to occur in the coming months." So, a period of negative interest rates would mean temporary. But I've been told by email "We expect that negative rates will now be applied for the remainder of 2014-2019 loans." So I asked if this means the secondary market will never open again because who's going to buy loans with a negative interest rate. Reply was "It is difficult to accurately forecast when the market will re-open." They said they are very concerned about the situation unfolding in the UK. The new buyer mustn't be too concerned though. Why would they go ahead with the purchase if things are so bad. They must see potential in Lendingworks. And if the 2% fee is going to be diverted to the shield when lending resumes, why are the negative interest rates necessary at all?
Also couldn't get a straight answer about what the negative interest rate is.
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mogish
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Post by mogish on Nov 5, 2020 13:31:38 GMT
So the site says "We will be required to adjust lender rates further using the existing Lender Rate Adjustment mechanism, resulting in a period of negative interest rates to divert more funding to the Shield to cover the loan defaults that we expect to occur in the coming months." So, a period of negative interest rates would mean temporary. But I've been told by email "We expect that negative rates will now be applied for the remainder of 2014-2019 loans." So I asked if this means the secondary market will never open again because who's going to buy loans with a negative interest rate. Reply was "It is difficult to accurately forecast when the market will re-open." They said they are very concerned about the situation unfolding in the UK. The new buyer mustn't be too concerned though. Why would they go ahead with the purchase if things are so bad. They must see potential in Lendingworks. And if the 2% fee is going to be diverted to the shield when lending resumes, why are the negative interest rates necessary at all?
Also couldn't get a straight answer about what the negative interest rate is.
So we are effectively paying them to hold our non interest bearing cash with no idea when , if at all we will see our money back as the secondary market cannot be confirmed when it will return. I have a very bad feeling about this. The response to your e mail suggests they either dont know or care what the future holds for us.
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