ceejay
Posts: 971
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Post by ceejay on Jun 29, 2020 15:13:50 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? Fair question. I might speculate that a loan could become in default if there were a breach of some other condition of the loan (i.e., other than making the final payment). Perhaps, reporting progress regularly? Or if the borrower became bankrupt? Or failed to pay on time for another loan? Pure speculation, of course. As to the second question - well, I think we all know the answer to that one! The PF is stretched enough at the moment covering loan payments that need to be paid now! Remember that as soon as the PF is unable to make a required payment, the brown stuff hits the fan for all loans and RS will be wanting to delay that moment for as long as possible, just in case everything somehow comes good over the next 12 months or whatever...
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Jun 29, 2020 21:16:20 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? Fair question. I might speculate that a loan could become in default if there were a breach of some other condition of the loan (i.e., other than making the final payment). Perhaps, reporting progress regularly? Or if the borrower became bankrupt? Or failed to pay on time for another loan? Pure speculation, of course. As to the second question - well, I think we all know the answer to that one! The PF is stretched enough at the moment covering loan payments that need to be paid now! Remember that as soon as the PF is unable to make a required payment, the brown stuff hits the fan for all loans and RS will be wanting to delay that moment for as long as possible, just in case everything somehow comes good over the next 12 months or whatever... It isnt a stupid question at all. However, they have to report if a borrower defaults. i had this too. basically, if a borrower has 5 loans and had an issue or defaulted on 1 but the other 4 were ok Ratesetter must still report that the borrower defaulted but not per se on your loan. it is the legislation. But it isnt clear and they should take steps to clear it up. As i also understand it - their system is not smart enough to recognise a top up loan. if the borrower has 1000 and needs 100 more and they agree to pay the full 1100 it will default at 1000 mark. i asked them this and that was the reply i had too
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Post by gricehead on Jul 9, 2020 8:14:21 GMT
I note another loan in the one year market, £1.3m+ due in November, has defaulted since I last checked.
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Post by freefalljunkie on Jul 9, 2020 9:16:46 GMT
I note another loan in the one year market, £1.3m+ due in November, has defaulted since I last checked. Blimey that will make a bit of a large dent in the provision fund. I had an unexpected chunk of a few k land in my holding account this week from the Plus market, and when I looked into it it was from a PF payout. Strangely the underlying loan is showing as not defaulted and Ratesetter expecting the borrower to repay in full. I can only assume that the borrower has requested forbearance of a few months but is still expected to repay so has not technically defaulted. This does show the huge stress the PF must be under. Even if many borrowers who have requested a payment holiday go onto repay in full it still risks the PF running dry in the meantime.
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Post by oppsididitagain on Jul 9, 2020 10:28:41 GMT
I note another loan in the one year market, £1.3m+ due in November, has defaulted since I last checked. Where can you check this info - can you only see it if you are invested in it? I had a 1 year packback over night, it was a property loan which was due to mature in Dec believe. - but it didnt say defaulted. Just looked original amount was 58K of which I had 1K at 5%
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Post by gricehead on Jul 9, 2020 10:58:42 GMT
I note another loan in the one year market, £1.3m+ due in November, has defaulted since I last checked. Where can you check this info - can you only see it if you are invested in it? I had a 1 year packback over night, it was a property loan which was due to mature in Dec believe. - but it didnt say defaulted. Just looked original amount was 58K of which I had 1K at 5% I'm invested in it. I'm down to about a dozen or so 1 year loans now, so it's not much work to check them. No repayment has been made by the provision fund yet, as per the previous defaults discussed in this thread. It's assumed that comes on the due date.
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Post by jono75 on Jul 11, 2020 13:46:21 GMT
I note another loan in the one year market, £1.3m+ due in November, has defaulted since I last checked. I noticed that, I am also invested in it, hoping there are't two of that value in default, that's a big PF hit on one go. Borrower APR is 84.2%. Also got a 48k one in default in 1yr. Let's hope they can recover some, but in this climate I doubt it.
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Post by vv on Aug 27, 2020 15:59:04 GMT
I was due to have 3 x1yr loans repay in August. Currently I’ve had 13 repay ranging from dates August to January. Coincidence? Or is the one year queue being tackled differently? My qif number is hardly moving.
Vv
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ceejay
Posts: 971
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Post by ceejay on Aug 27, 2020 16:15:09 GMT
I was due to have 3 x1yr loans repay in August. Currently I’ve had 13 repay ranging from dates August to January. Coincidence? Or is the one year queue being tackled differently? My qif number is hardly moving. Vv Half of my 1Y loans have repaid since March, all of them early - some by just a few weeks, others by several months. It is possible that RS are actively bringing this about, though I note that all of my 1Y loans are/were property development, where it's common to close the loan whenever the project is finished - or indeed refinanced, given the government cash that is swilling around.
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Post by aidanw on Aug 27, 2020 16:32:34 GMT
I've also had three early repayments, two not due until December paid back on 24th along with one that wasn't due for about another month paid back on 14th.
There's still 762 in the queue in front of my 1Y withdrawal request but at this rate there won't be much to pay back so I'll probably cancel it before I'm at the front.
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aju
Member of DD Central
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Post by aju on Aug 28, 2020 10:12:59 GMT
I was due to have 3 x1yr loans repay in August. Currently I’ve had 13 repay ranging from dates August to January. Coincidence? Or is the one year queue being tackled differently? My qif number is hardly moving. Vv Half of my 1Y loans have repaid since March, all of them early - some by just a few weeks, others by several months.It is possible that RS are actively bringing this about, though I note that all of my 1Y loans are/were property development, where it's common to close the loan whenever the project is finished - or indeed refinanced, given the government cash that is swilling around. That's encouraging, we had a bigun come through early this week too, it was a property loan. I'm not really expecting the 1Y to do that much selling off anyway.
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wishy
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Post by wishy on Sept 11, 2020 11:26:40 GMT
I am coming to the end of my last few 1 year loans. I am wondering whether it is sensible to get a £10 loan to maintain access to the market or pointless because the 1 and 5 year markets don't have any future anyway. Anyone have any thoughts?
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Sept 11, 2020 12:07:03 GMT
I am coming to the end of my last few 1 year loans. I am wondering whether it is sensible to get a £10 loan to maintain access to the market or pointless because the 1 and 5 year markets don't have any future anyway. Anyone have any thoughts? Frankly, why keep funds in a product that will end. I would walk away and play elsewhere
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slippery
Member of DD Central
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Post by slippery on Sept 11, 2020 12:39:10 GMT
Pointless I think is the consensus. The takeover by Metro means the business model is changing.
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Post by Deleted on Sept 11, 2020 12:40:04 GMT
I am in a similar position and agree with beagle above. I am going to let the loans repay and I will lose access to the 1Y market. I also have a few 5 year loans each less than £10. Is there any way to cash these in eg by closing down the account completely? Just to tidy things up really.
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