cb25
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Post by cb25 on Apr 3, 2020 15:01:58 GMT
I know that the RYI queue is long (see other thread!) but what about 1Y loans coming to their natural ends - has anyone seen any of these lately? What does the panel think are the prospects of these loans ending normally? There does seem to be a general mood that any kind of loan/mortgage repayment is now optional, and for some (many?) borrowers I'm sure that's right. OTOH, some borrowers will be less affected by current events and might be happy just to settle up in the normal way. I don't have any 1Y loans imminently ending - have you? Nothing left myself, but as of right now I would fully expect naturally finishing loans to close as normal whatever the market. RS are still currently paying out all owed interest, and if your borrower does default then the PF will pick up the rest. This will apply until/unless RS declare any change in policy. The earliest 'next repayment' on my 1yr portfolio is 29th May, then 3 in July, 1 Aug,...
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Post by Badly Drawn Stickman on Apr 3, 2020 15:46:53 GMT
Nothing left myself, but as of right now I would fully expect naturally finishing loans to close as normal whatever the market. RS are still currently paying out all owed interest, and if your borrower does default then the PF will pick up the rest. This will apply until/unless RS declare any change in policy. The earliest 'next repayment' on my 1yr portfolio is 29th May, then 3 in July, 1 Aug,... I had a one year finish today. Maths was fairly simple and it all looked good to me. I didn't dig any deeper into it than that (seeing no reason).
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cobi
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Post by cobi on Apr 3, 2020 16:11:16 GMT
My next 3 are in May 13th, 21st and 26th
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jlend
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Post by jlend on Apr 3, 2020 16:32:44 GMT
I had 26k repaid normally in March, mostly 23rd. All on time, and looking at the loan details all repaid by the borrower without any support from the PF. As r00lish67 says unless/until RS tell us any different capital and interest payments are coming back as expected fine so far. It is also worth knowing over 90% of lenders continue to invest. There isn't a mass rush to the exit so far if that makes anyone more comfortable about liquidity. Of course liquidity is slow and risks have increased, but sometimes the microcosm of people on this forum isn't representative of lenders on any platform.
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Post by ruralres66 on Apr 3, 2020 16:46:58 GMT
I know that the RYI queue is long (see other thread!) but what about 1Y loans coming to their natural ends - has anyone seen any of these lately? What does the panel think are the prospects of these loans ending normally? There does seem to be a general mood that any kind of loan/mortgage repayment is now optional, and for some (many?) borrowers I'm sure that's right. OTOH, some borrowers will be less affected by current events and might be happy just to settle up in the normal way. I don't have any 1Y loans imminently ending - have you? I have a contract ending on the 1 year 8th April - about £900 and a much bigger one on the 24th April- Will see what happens........
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ceejay
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Post by ceejay on Apr 3, 2020 17:57:47 GMT
I went through the supplied details on the 10 loans in my 1Y loanbook.
All of them were Non-amortizing Property loans. Just one was identified as being in default, and therefore in line for a PF payment (some months away).
I really can't see how any normal property development loan is going to end normally at the moment - building has slowed or stopped, and the housing market likewise. Some of these may be commercial developments, of course, but is that any better?
I can see the PF being used up by these loans very quickly... or, perhaps more likely, a change of policy so that these loans are extended by several months, with or without interest.
My next one is due in July, I think, hence asking for others' experiences.
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Post by cinereus on Apr 3, 2020 18:47:49 GMT
It is also worth knowing over 90% of lenders continue to invest. Where is this figure from please?
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Post by scepticalinvestor on Apr 3, 2020 19:02:47 GMT
It's from the RS daily update. They've added this line from about 3-4 days ago. I might be wrong but I think all that means is that no more than 10% of RS investors have asked to fully divest their holdings. It is also worth knowing over 90% of lenders continue to invest. Where is this figure from please?
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jlend
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Post by jlend on Apr 3, 2020 19:30:20 GMT
It's from the RS daily update. They've added this line from about 3-4 days ago. I might be wrong but I think all that means is that no more than 10% of RS investors have asked to fully divest their holdings. Where is this figure from please? There was 47.4m of new lending in March, plus you can see the number of release investment requests for the second half of March in the RS updates on another thread that RS have processed. Both these are being funded by people still investing. Of course there are people wanting to exit and a queue but a lot of lenders are staying at the moment. Don't assume a few posters on the forum mean a mass exodus at the moment
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Post by propman on Apr 4, 2020 9:13:23 GMT
I went through the supplied details on the 10 loans in my 1Y loanbook. All of them were Non-amortizing Property loans. Just one was identified as being in default, and therefore in line for a PF payment (some months away). I really can't see how any normal property development loan is going to end normally at the moment - building has slowed or stopped, and the housing market likewise. Some of these may be commercial developments, of course, but is that any better? I can see the PF being used up by these loans very quickly... or, perhaps more likely, a change of policy so that these loans are extended by several months, with or without interest. My next one is due in July, I think, hence asking for others' experiences. Property Development loans are repaid in one of 2 ways. Either they are refinanced or repaid from the proceeds of the sale of the property (occassionally the profits from the sale of other properties). As property sales have ground to a halt, that only leaves refinancing. As I doubt that there are lenders out there looking tro extend new money in this market, that means loans being rolled over by their existing lenders as in the GFC. So extend and pretend.
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ceejay
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Post by ceejay on May 31, 2020 7:49:38 GMT
I went through the supplied details on the 10 loans in my 1Y loanbook. All of them were Non-amortizing Property loans. Just one was identified as being in default, and therefore in line for a PF payment (some months away). I really can't see how any normal property development loan is going to end normally at the moment - building has slowed or stopped, and the housing market likewise. Some of these may be commercial developments, of course, but is that any better? I can see the PF being used up by these loans very quickly... or, perhaps more likely, a change of policy so that these loans are extended by several months, with or without interest. My next one is due in July, I think, hence asking for others' experiences. Nearly two months later... of my 10 1Y loans, one has now repaid early, one remains in default, and the other eight are apparently fine. Should I feel cheered by this? Are RS actually updating loan details? Are they operating on a "no news is good news" assumption, so that if the borrower hasn't actually failed to make his repayment then all must be well? Is anyone else seeing their loan details being updated?
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Post by gricehead on Jun 1, 2020 8:40:47 GMT
I went through the supplied details on the 10 loans in my 1Y loanbook. All of them were Non-amortizing Property loans. Just one was identified as being in default, and therefore in line for a PF payment (some months away). I really can't see how any normal property development loan is going to end normally at the moment - building has slowed or stopped, and the housing market likewise. Some of these may be commercial developments, of course, but is that any better? I can see the PF being used up by these loans very quickly... or, perhaps more likely, a change of policy so that these loans are extended by several months, with or without interest. My next one is due in July, I think, hence asking for others' experiences. Nearly two months later... of my 10 1Y loans, one has now repaid early, one remains in default, and the other eight are apparently fine. Should I feel cheered by this? Are RS actually updating loan details? Are they operating on a "no news is good news" assumption, so that if the borrower hasn't actually failed to make his repayment then all must be well? Is anyone else seeing their loan details being updated? Even combining our data is going to be statistically weak, but: I have 14 loans remaining in the 1Y market, across 11 different borrowers* with between 4 and 10 months to pay. 1 is in default. 0 others have been had contributions by the provision fund. As to whether loan details are being updated - they definitely are in other markets, so I don't see why they wouldn't be in 1Y. *Thanks to the wonderful diversification system, I picked up a piece of the same loan in March that already represented 20%+ of my 1Y portfolio from November.
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Post by erniec on Jun 1, 2020 9:10:12 GMT
ceejayMy wife and I have 7 1 year loans between us. Like you, one is in default. The explanation I got from RS was poor as to why it hadn’t paid out from the PF. Basically, they said it hadn’t actually defaulted!! They also suggested that the same borrower had previously defaulted on another loan. They didn’t respond when I asked why they’d granted another loan. Fortunately 6 of our loans are due to mature by 1 September, including the ‘defaulted’ one. The last one is February next year.
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Post by ruralres66 on Jun 1, 2020 9:21:02 GMT
ceejay My wife and I have 7 1 year loans between us. Like you, one is in default. The explanation I got from RS was poor as to why it hadn’t paid out from the PF. Basically, they said it hadn’t actually defaulted!! They also suggested that the same borrower had previously defaulted on another loan. They didn’t respond when I asked why they’d granted another loan. Fortunately 6 of our loans are due to mature by 1 September, including the ‘defaulted’ one. The last one is February next year. Created a new thread on this but decided to post here as well. This morning I did my daily due diligence check of RYI progess (or not) for my 1 year and 5 year RYI remaining loans. The page displaying my 12 1 year loans of about 20k only showed 2 loans amounting to less than 1k? Any body else having this problem? Additionally after some backwards and forwards on the very helpful but unreliable RS web buttons one RYI loan displayed as being issued as a 'new' contract on the 21st May! Well I did not lend on that day....... I does show maturity soon 23rd July so I hope that will be it for RS save a £10 float.... Rang RS...... an explanation was offered but was I filled with confidence and goodwill ?.......!!! No.
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Post by gricehead on Jun 29, 2020 14:54:22 GMT
Potentially stupid questions time: Already mentioned in this thread that I have a 1 year non-amortising property loan showing as defaulted.
Question is, how has it defaulted? How can you default on a loan that no repayment has been due on yet? It's not due repayment for another six months, surely it becomes defaulted then if the borrower can't repay/refinance?
Follow up: If it's defaulted, why doesn't the PF pay out now (with pro-rata interest) rather than waiting the full year?
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