IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 12, 2020 21:07:29 GMT
Interest shortfall would have been LESS as the rates on old loans would be closer to the rates on new loans. No, these are temporary rates, they don't apply for the remainder of the loan. That's my understanding at least. All LW have done is re-profile the rates over the lifetime of the loan. Remember, rates are now officially variable, not only over the lifetime of the loan but also throughout the loans life. It's this last point that I'm not sure most lenders have grasped yet? Edit: "temporary" is a poor choice of word in this context. Think of it this way, the Shield will be replenished at a slower rate than it would of done prior to the announcement today. I don't think this can be right dan1 as many people are saying their shortfall payments are now reduced. They must calculate the shortfall based on the "temporary" rates, as they have said the lifetime expected interest is unchanged..
|
|
|
|
Post by dan1 on Feb 12, 2020 21:35:11 GMT
No, these are temporary rates, they don't apply for the remainder of the loan. That's my understanding at least. All LW have done is re-profile the rates over the lifetime of the loan. Remember, rates are now officially variable, not only over the lifetime of the loan but also throughout the loans life. It's this last point that I'm not sure most lenders have grasped yet? Edit: "temporary" is a poor choice of word in this context. Think of it this way, the Shield will be replenished at a slower rate than it would of done prior to the announcement today. I don't think this can be right dan1 as many people are saying their shortfall payments are now reduced. They must calculate the shortfall based on the "temporary" rates, as they have said the lifetime expected interest is unchanged.. I take it all back. It's clear that I haven't a clue but then I'm not sure anyone else does either! What does this mean if the existing lenders get higher current interest rates and a lower interest shortfall fee? Either the payments going to the Shield have been reduced or the new lenders taking on the loans will be stung for the extra. Perhaps it's being funded by LW themselves? It's opaque. I'd want to know how to replicate the calculations before considering investing in LW again.
|
|
macq
Member of DD Central
Posts: 1,934 
Likes: 1,199
|
Post by macq on Feb 12, 2020 22:12:06 GMT
Does that mean that those who have cashed out in the last few weeks will be due a refund ??
or
those left going forward will be charged even more to cash out ??
Why does it feel like LW are making it up as they go along ?
Why would they give refund to people that have decided to leave at the worst time, maybe you withdraw because you needed the money, that is unfortunate but it was clearly announced that the worst was January and it should get better over the next 6 months . We have all read the same comments , your interpretation was to leave and cash out , mine was to be patient and stay invested for the next 6 months, to see if improvement was done and then decide what to do. I think it is too easy to decide to cash out on panic, spreading also worries to others investors because you can't hold your investment and you are not able to be patient for 6 months, and now you want the money back, I don't see any reason why they should. I bet the people who were not patient and cashed out in a panic from Woodford at the first sign of trouble regret it as well
|
|
|
|
Post by df on Feb 12, 2020 23:06:52 GMT
My hit was over 6.5%. Thank you LW. I've put a small amount for sale 3 days ago to see it for myself. My hit was just under 4%. Nothing is sold yet, I don't expect much demand for SM loans at the moment 
|
|
benaj
Member of DD Central
N/A
Posts: 5,591
Likes: 1,735
|
Post by benaj on Feb 12, 2020 23:19:45 GMT
My hit was over 6.5%. Thank you LW. I've put a small amount for sale 3 days ago to see it for myself. My hit was just under 4%. Nothing is sold yet, I don't expect much demand for SM loans at the moment My partner's had a loan chunk in the Growth Product sold today (Interest shortfall penalty @ 3.1%). Current sales speed is still under 5 business days. I will report back tomorrow about the new interest shortfall penalty when the SM market re-opens tomorrow morning. Anyone setting alarm clock for 4am? 
|
|
|
|
Post by Ace on Feb 13, 2020 0:48:09 GMT
My interest shortfall fee has dropped from 6.5% to 6.3% to 4.4%. Still only 32% of current holding is sellable.
|
|
benaj
Member of DD Central
N/A
Posts: 5,591
Likes: 1,735
|
Post by benaj on Feb 13, 2020 7:15:53 GMT
My interest shortfall fee has dropped from 6.5% to 6.3% to 4.4%. Still only 32% of current holding is sellable. I forgot to get up @ 4am this morning. It's better to take things slow I guess. UPDATE: 0820 The interest shortfall penalty has been reduced. The shortfall for selling the lot in my partner's Growth product (2018 & 2019 cohorts) 2.6% - (reduced from 5.4% last week 3rd Feb)
|
|
macq
Member of DD Central
Posts: 1,934
Likes: 1,199
|
Post by macq on Feb 13, 2020 10:43:05 GMT
Strangely for me its more about trust which i admit i have nearly lost,then the % rate at the moment and i think i see it a lot on this forum for all platforms (but maybe less so now days) in that people really want p2p to survive and try to give the benefit of doubt when things start to go wrong more then they would with a Bank/BS.I almost made that mistake Once myself and am wondering if i am doing it now.
I have not done 12% p2p or even 4% and not expected defaults and losses but i need that trust of the platform in the way they run.When i and others i know joined LW it was as a fixed income product and that's still what you expect via the homepage.First the product was renamed growth and the first seeds were planted of a long term investment and now we have changes made that you need to be a NASA scientist to fully understand and can be changed up and down by LW as they see fit.
This is where the benefit of doubt comes in as i have seen people say things like well its still 2 or 3 % and better then a bank.But can you imagine the fuss if say Nationwide were to bring out a Five year monthly income bond paying 3% and then after Two years change the terms and say we are only going to pay 1% for now and maybe and we mean maybe give you the rest back at the end.Would people turn round and say well its still better then the bank down the road? - i think not
It might only be a few people posting on here and people might be right and LW will probably ride it out but there was a thread on the MSE forum at the start of the week when i last looked which had about only 8 posts but nearly Seven hundred reads and i worry about that as well as that seems like a fair few people who will now have that same trust issue
|
|
squid
Member of DD Central
Posts: 141
Likes: 204
|
Post by squid on Feb 13, 2020 11:04:35 GMT
Exactly. There is a lack of clarity and understanding - as an investor this is not my expectation of how any platform should operate.
|
|
zlb
Member of DD Central
Posts: 1,422
Likes: 333
|
Post by zlb on Feb 13, 2020 11:11:51 GMT
Does that mean that those who have cashed out in the last few weeks will be due a refund ??
or
those left going forward will be charged even more to cash out ??
Why does it feel like LW are making it up as they go along ?
they do seem to be making it up as they go along - first certain member of this forum identified lack in pf and estimated future losses. LW argued against this; then suddenly changed and made announcements which clearly showed accuracy of forecast by this forum. Now there is another change just after I have sold loans. Plus the announced interest rate to variable - I expected that to be visible so when the emails kept coming through at 4% etc I thought, 'oh well, they don't need it to be variable this month/week, it seems'...
|
|
|
|
Post by buzzablinio on Feb 13, 2020 11:12:11 GMT
As someone who paid over 7% a couple of weeks ago, I feel very warm and fuzzy towards LW now that it seems the penalty has been reduced to just a couple of %...albeit a couple of % higher than the website advises, which still states an early withdrawal would attract a penalty of just 0.5%....but what's it matter...according to the website the growth account is still earning 5.4% which is blatantly bunkum.
My trust in LW has gone from 100% to less than zero.
Welcome to the wild west of finance.
|
|
|
|
Post by stevexxx on Feb 13, 2020 12:00:18 GMT
I no longer know what the hell I'm getting interest wise, I lent a specific rate that's been overturned, I dont understand what the hell is going on any more.. I'm losing trust in this platform fast and have switched back to drawdown and will not be re-investing for the foreseeable future unless I start to get the guaranteed rates on my current loans... Two months again this was my fav platform but now it seems it just wanted to get people to invest with unrealistic rates then stitch everyone up by crashing out those rates, if that was a premeditated plan that I would call it fraud.. Things are far from clear of whats going on now!
|
|
benaj
Member of DD Central
N/A
Posts: 5,591
Likes: 1,735
|
Post by benaj on Feb 13, 2020 12:26:21 GMT
I no longer know what the hell I'm getting interest wise, I lent a specific rate that's been overturned, I dont understand what the hell is going on any more.. I'm losing trust in this platform fast and have switched back to drawdown and will not be re-investing for the foreseeable future unless I start to get the guaranteed rates on my current loans... Two months again this was my fav platform but now it seems it just wanted to get people to invest with unrealistic rates then stitch everyone up by crashing out those rates, if that was a premeditated plan that I would call it fraud.. Things are far from clear of whats going on now! I did an XIRR calculation (excluding bonus & fees) for my partners growth (2018&2019). It does perform like 5.69% in the current tax year. I think the only way to see performance is wait, at least another 30 days to see the effect of the rate adjustment yesterday. I admit investors cannot see how it is performing due to the changes LW brought last year. We used to see how much interest to be earned at the end of the month. Let's hope for the best. Just a personal opinion from an ordinary p2p lending investor.
|
|
|
|
Post by stevexxx on Feb 13, 2020 13:19:11 GMT
I no longer know what the hell I'm getting interest wise, I lent a specific rate that's been overturned, I dont understand what the hell is going on any more.. I'm losing trust in this platform fast and have switched back to drawdown and will not be re-investing for the foreseeable future unless I start to get the guaranteed rates on my current loans... Two months again this was my fav platform but now it seems it just wanted to get people to invest with unrealistic rates then stitch everyone up by crashing out those rates, if that was a premeditated plan that I would call it fraud.. Things are far from clear of whats going on now! I did an XIRR calculation (excluding bonus & fees) for my partners growth (2018&2019). It does perform like 5.69% in the current tax year. I think the only way to see performance is wait, at least another 30 days to see the effect of the rate adjustment yesterday. I admit not investors cannot see how it is performing due to the changes LW brought last year. We used to see how much interest to be earned at the end of the month. Let's hope for the best. Just a personal opinion from an ordinary p2p lending investor. Likewise I was getting around 6% until Dec, I was expecting a slight drop in Jan but it looks a little more than a slight drop. They have hidden the amount of monthly interest earned now and I don't like that. I was expecting around 5.4% but it looks much lower. I am waiting to see how things go but in the meantime auto-invest is off until I can determine certainty in rates which seems to be whatever they want to pay us right now.
|
|
|
|
Post by carol167 on Feb 13, 2020 13:26:11 GMT
I did an XIRR calculation (excluding bonus & fees) for my partners growth (2018&2019). It does perform like 5.69% in the current tax year. I think the only way to see performance is wait, at least another 30 days to see the effect of the rate adjustment yesterday. I admit not investors cannot see how it is performing due to the changes LW brought last year. We used to see how much interest to be earned at the end of the month. Let's hope for the best. Just a personal opinion from an ordinary p2p lending investor. Likewise I was getting around 6% until Dec, I was expecting a slight drop in Jan but it looks a little more than a slight drop. They have hidden the amount of monthly interest earned now and I don't like that. I was expecting around 5.4% but it looks much lower. I am waiting to see how things go but in the meantime auto-invest is off until I can determine certainty in rates which seems to be whatever they want to pay us right now.
I got 0.68% on my classic account and 2.33% for the ISA in for January.
In all the monthly tracking that I did for the ISA account over nearly 3 years, I only went over 6% once.
And since all my loans were achieving more than 5.4% - it never crossed my mind that I would be subjected to an interest shortfall fee.
Duped 100%.
|
|
