jester
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Post by jester on Nov 29, 2019 16:30:41 GMT
I feel very split in my opinions of this move. I have no doubt it's the prudent way forward, return of capital has to take precedent over interest earned and we can all do without another crash and burn platform denying all issues exist. Our future rates are more in line with competitor platforms and in supporting the diminishing shield I feel more comfortable in continue to reinvest.
On the counterside I'm far from impressed with the timing of this move from LW. It's been well publicised here that the shield was running dry for some time which they will have been well aware. To continue to offer market leading rates in the knowledge this wouldn't be sustainable was misleading at best, deceptive at worst! Trust is hard won and easy lost and this has diminished mine.
On balance I'll continue to reinvest but certainly won't deposit further until I see how this works itself out over some time.
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rogedavi
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Post by rogedavi on Nov 29, 2019 16:36:24 GMT
P2P houses that operate a PF model advertise a guaranteed and smoothed return, with the main risk being a liquidity event when they couldn't do that as in practice, it would be very similar to a run on a bank. Once an event occurs, confidence is lost and the platform will end up like FC, with no liquidity and effectively a run off event for investors.
The LW changes have averted that event, now you have a variable payout dependent on your cohort. Its very similar to just getting paid the gross rate and taking bad debts, except at least you are pooled with your cohort so you get some diversification across the loan book from that.
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trevor
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Post by trevor on Nov 29, 2019 20:47:59 GMT
The T & C's might well give them the right to reduce an interest rate just a few months into a fixed rate. But the trust has gone. End of relationship. Bad move LW.
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ashtondav
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Post by ashtondav on Dec 1, 2019 19:02:41 GMT
Prudent decision? Afterall FC, RS, big Z et al have all reduced rates.
Or is the brown stuff about to hit the expelair...
Withdrawing 50% until the air clears - or clouds. Maybe back after Christmas.
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Post by supernumerary on Dec 2, 2019 15:36:49 GMT
LW was high in my respect (I was in over 10 platforms) and it was probably my favourite, been with them since March 2015. I have often promoted them and spoken highly of them in the past. I have a large amount of capital well in excess of the average.
Your whole post was interesting to read. 
I have just quoted a couple of your sentences, to focus on. 
Just as a matter of opinion, out of the 10 platforms you invest in, which one is your favourite now?
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Post by gravitykillz on Dec 2, 2019 15:41:44 GMT
Mine is landbay. But it pays 3.09%. That is the cost of security
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Post by carol167 on Dec 2, 2019 16:14:32 GMT
LW was high in my respect (I was in over 10 platforms) and it was probably my favourite, been with them since March 2015. I have often promoted them and spoken highly of them in the past. I have a large amount of capital well in excess of the average.
Your whole post was interesting to read.
I have just quoted a couple of your sentences, to focus on.
Just as a matter of opinion, out of the 10 platforms you invest in, which one is your favourite now?
The only one I would now and am investing new money into is LendInvest (not everyones cup of tea because there's no 2nd market so you have to let each loan go full term - typically 6 months). Been with them since July 2015 and although I ran the account right down to zero by Oct 2018 - I have since been building it back up again and will continue to do so up to my maximum level, new loans permitting. Seemingly a very professional setup. I'm averaging 5.78% with them and I pick a slightly conservative autolend setup.
LW, RS & AC are my workhorse platforms for generating income but all three are now in withdrawal mode for me, mostly due to rate changes (RS & AC risk to interest % levels have fallen below what I find acceptible) but also because they were all or have gone over my maximum investment level (particularly LW) that I had set myself. I'm happy to hold LW once it gets down a bit. I had the policy of increasing when times were good, reducing when not. I would hope to reinvest in the future - but at the moment it seems like we're going through a natural correction across the board and withdrawing eases my mind. I'll run them down and sit it out for a while with the hope of returning in the furture. Bear in mind, slowly withdrawing available cash will takes years anyway, unless I get spooked and try a quick sellout.
For clarity I'm also with LC, Wellesley, FS, FC, MT, Lendy, Zopa. Got out everything I could from Lendy, & FS before they fell over and am out of FC & MT bar bad loans. Running Z down - only ever invested in Zopa classic with provision fund. LC - I'm undecided on. Default level is ok, but continuing lack of recovery on defaulted loans is a worrying sign but I'm well below my max level with them anyway. So 11 p-2-p platforms in all.
Currently pouring returned p-2-p money into my existing share portfolio of several Vanguard passive index funds with a pound cost averaging strategy.
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Post by gravitykillz on Dec 2, 2019 17:16:54 GMT
Your whole post was interesting to read.
I have just quoted a couple of your sentences, to focus on.
Just as a matter of opinion, out of the 10 platforms you invest in, which one is your favourite now?
The only one I would now and am investing new money into is LendInvest (not everyones cup of tea because there's no 2nd market so you have to let each loan go full term - typically 6 months). Been with them since July 2015 and although I ran the account right down to zero by Oct 2018 - I have since been building it back up again and will continue to do so up to my maximum level, new loans permitting. Seemingly a very professional setup. I'm averaging 5.78% with them and I pick a slightly conservative autolend setup.
LW, RS & AC are my workhorse platforms for generating income but all three are now in withdrawal mode for me, mostly due to rate changes (RS & AC risk to interest % levels have fallen below what I find acceptible) but also because they were all or have gone over my maximum investment level (particularly LW) that I had set myself. I'm happy to hold LW once it gets down a bit. I had the policy of increasing when times were good, reducing when not. I would hope to reinvest in the future - but at the moment it seems like we're going through a natural correction across the board and withdrawing eases my mind. I'll run them down and sit it out for a while with the hope of returning in the furture. Bear in mind, slowly withdrawing available cash will takes years anyway, unless I get spooked and try a quick sellout.
For clarity I'm also with LC, Wellesley, FS, FC, MT, Lendy, Zopa. Got out everything I could from Lendy, & FS before they fell over and am out of FC & MT bar bad loans. Running Z down - only ever invested in Zopa classic with provision fund. LC - I'm undecided on. Default level is ok, but continuing lack of recovery on defaulted loans is a worrying sign but I'm well below my max level with them anyway. So 11 p-2-p platforms in all.
Currently pouring returned p-2-p money into my existing share portfolio of several Vanguard passive index funds with a pound cost averaging strategy.
I am also in lendinvest with a small 4k investment and 3 defaulted loans. I too am playing it safe at least until after brexit as I am sure there will be some ramifications in the p2p sector. Thinking of pulling out premium bonds as it is month 3 and I still have not won anything and I have a 25k investment.
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Post by carol167 on Dec 2, 2019 17:24:02 GMT
I am also in lendinvest with a small 4k investment and 3 defaulted loans. I too am playing it safe at least until after brexit as I am sure there will be some ramifications in the p2p sector. Thinking of pulling out premium bonds as it is month 3 and I still have not won anything and I have a 25k investment.
Re: premium bonds.... My all time average since having the full amount (from Oct 2006) is 1.64%. I'm happy with that in the current climate for 100% safe money. And there's always the chance of winning bigger :-) Premium bonds form part of the base of my pyramid of risk spectrum.
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Post by supernumerary on Dec 2, 2019 19:34:38 GMT
Thanks carol167. Most comprehensive. Much appreciated. Have you tried ablrate? That doesn't appear on your list. UNFORTUNATELY, I too have Lendy loans...  I was using Lending Works for its high interest, immediate withdrawal capabilities on some of my savings. I have looked at the Assetz Capital website, which seems interesting, but I am looking around at the moment, that was why I asked you. AGAIN, your post is informative and helpful. 
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Post by gravitykillz on Dec 3, 2019 9:31:52 GMT
Regarding my previous email. I actually won £25 three times yesterday! Which is not bad for a 25k investment!!
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Post by Matthew on Dec 3, 2019 10:19:41 GMT
Hi dan1 Apologies for this - the fee waiver will only be applied in the system from midnight tonight. However, if you do sell loans this evening you can let our team know and we'll reimburse that fee for you tomorrow. Many thanks fee is still there this morning EDIT: crossed with Ace Hi guys I trust you were subsequently able to request loan sales with no fee - this took a few days to be removed, apologies. Anyone who paid a fee should have already been refunded. Thanks
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Post by Matthew on Dec 3, 2019 10:28:52 GMT
P2P houses that operate a PF model advertise a guaranteed and smoothed return, with the main risk being a liquidity event when they couldn't do that as in practice, it would be very similar to a run on a bank. Once an event occurs, confidence is lost and the platform will end up like FC, with no liquidity and effectively a run off event for investors. The LW changes have averted that event, now you have a variable payout dependent on your cohort. Its very similar to just getting paid the gross rate and taking bad debts, except at least you are pooled with your cohort so you get some diversification across the loan book from that. Hi rogedaviReturns from P2P (or any investment for that matter) can never be guaranteed and should never be seen as anything like a fixed rate savings account. The rates advertised are target rates, which in the normal course of business should be achieved. Clearly if performance in any particular cohort is worse than expected, actual rates achieved may be lower. I think most platforms do a pretty good job of making this point clear. On the second point, the Shield model in our opinion is still far superior to getting paid the gross rate and taking bad debts, for the following reasons: - Smoothing timing differences (if you're subject to individual losses you're likely to have months where losses are greater than income, even with a well diversified portfolio) - Diversification across a greater pool of loans (i.e. all loans in the cohort rather than only yours) - Fair distribution of returns among investors in the cohort (rather than pot luck based on your allocation) - Timely reimbursement for defaulted loans (rather than holding onto delinquent chunks for potentially years, receiving token payments) Hope this helps.
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pom
Member of DD Central
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Post by pom on Dec 3, 2019 11:11:54 GMT
Regarding my previous email. I actually won £25 three times yesterday! Which is not bad for a 25k investment!! Which by the looks of things is more than I got on my 50k this month  Having said that here was definitely a bit of lag when I first invested with them (I thought I might have won something the month before I actially did), but since then I think there's only been one month in 4yrs that I've not won anything. Usually anything from 1-6 x £25, but also £500 and 4x£100 in amongst that so like carol167 I'm also averaging 1.64% (spooky! Especially when over different timespans) which as I'm a 40% tax payer is the equivalent of 2.73%...which I don't see any banks paying right now...so in my view the max investment is a bit of a no-brainer for anyone paying higher rate tax, not least as you're much more likely to beat the average then
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Post by gravitykillz on Dec 3, 2019 11:28:44 GMT
Only strange thing was I did not get any email confirmation. I had to physically log into my nsi account to check.
It has definitely given me some confidence to chuck a few more quid in. Nice to hear you won £500! I have really never heard anyone winning more than a hundred on PB.
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