easylender
Member of DD Central
Posts: 249 
Likes: 225
|
Post by easylender on Apr 1, 2020 23:15:24 GMT
The annualised returns on my growth ISA this year have been: January 3.65% February 4.22% March 5.40% As I've been lending through LW for just 2 years I suspect my returns may be better than lenders with older loans. It would be interesting to know what others are getting.
|
|
benaj
Member of DD Central
N/A
Posts: 5,661
Likes: 1,746
|
Post by benaj on Apr 3, 2020 8:26:55 GMT
I haven't done the XIRR yet, but according to my partner's account monthly statement, it's £5.53 in March compared £3.22 in Feb.
|
|
easylender
Member of DD Central
Posts: 249
Likes: 225
|
Post by easylender on May 1, 2020 12:51:22 GMT
The annualised return for April on my growth ISA is well down at only 1.32%.
PS. This is calculated by ((End of period balance/start of period balance) to the power(days in year/days in period) - 1) x 100.
|
|
|
|
Post by oppsididitagain on May 6, 2020 17:24:20 GMT
I presume ROR will be -ve this year as not only are they not paying us interest but we are being charged to be on the platform.
Crazy idea, if they think this will make people invest with them in the future , if you ask me
|
|
|
|
Post by carol167 on May 6, 2020 20:22:24 GMT
I presume ROR will be -ve this year as not only are they not paying us interest but we are being charged to be on the platform. Crazy idea, if they think this will make people invest with them in the future , if you ask me How are you being charged to be on the platform ? Have I missed something ?
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on May 7, 2020 5:36:25 GMT
I presume ROR will be -ve this year as not only are they not paying us interest but we are being charged to be on the platform. Crazy idea, if they think this will make people invest with them in the future , if you ask me How are you being charged to be on the platform ? Have I missed something ?
There is a 2% fee. What is currently happening is all lender interest after the 2% fee is being diverted into the Shield. The fee is not in addition to diverting interest, it does mean less money is diverted to the Shield though. With a fall in income there was little option for lending works
|
|
|
|
Post by carol167 on May 7, 2020 6:21:46 GMT
How are you being charged to be on the platform ? Have I missed something ?
There is a 2% fee. What is currently happening is all lender interest after the 2% fee is being diverted into the Shield. The fee is not in addition to diverting interest, it does mean less money is diverted to the Shield though. With a fall in income there was little option for lending works Ah,ok.
|
|
|
|
Post by jojo on May 7, 2020 9:06:54 GMT
I presume ROR will be -ve this year as not only are they not paying us interest but we are being charged to be on the platform. Crazy idea, if they think this will make people invest with them in the future , if you ask me I am not sure I understand and not sure it is a right assessment in my opinion to say that "we are being charged to be on the platform". (it is misleading) I have not seen any money being taken "as a charge" on my account, i have repayment done as usual with no interest paid yes, but i don't consider that as a charge. We have seen all platforms being in the same boat. I didn't like the fact that no interest are paid and it was not possible to draw, now, after reflection and observation of what is going on elsewhere, I very much appreciate that LW have reacted very quickly (the first one from my knowledge) , to avoid having to deal with more unsecure borrowers and was looking to use interests to boost the shield (pf) to cover future arrears. (i prefer to miss some interests for some months than lose capital). I think that past/current lenders are going to take some of the pain from the current situation in any platform ( interest frozen for some time) but I still think that new lender will have much better conditions to invest after the crisis, ie : rates still around 4% so better than BOE and normal retail banks and protection fund will be stronger too.
|
|
|
|
Post by oppsididitagain on May 7, 2020 10:01:08 GMT
I presume ROR will be -ve this year as not only are they not paying us interest but we are being charged to be on the platform. Crazy idea, if they think this will make people invest with them in the future , if you ask me I am not sure I understand and not sure it is a right assessment in my opinion to say that "we are being charged to be on the platform". (it is misleading) I have not seen any money being taken "as a charge" on my account, i have repayment done as usual with no interest paid yes, but i don't consider that as a charge. We have seen all platforms being in the same boat. I didn't like the fact that no interest are paid and it was not possible to draw, now, after reflection and observation of what is going on elsewhere, I very much appreciate that LW have reacted very quickly (the first one from my knowledge) , to avoid having to deal with more unsecure borrowers and was looking to use interests to boost the shield (pf) to cover future arrears. (i prefer to miss some interests for some months than lose capital). I think that past/current lenders are going to take some of the pain from the current situation in any platform ( interest frozen for some time) but I still think that new lender will have much better conditions to invest after the crisis, ie : rates still around 4% so better than BOE and normal retail banks and protection fund will be stronger too. Maybe charge is the wrong word, how about I use the word service margin then. www.lendingworks.co.uk/legal-informationDuring the Normalisation Period, Lending Works will receive a pro-rated servicing margin of 2.0% p.a. of the outstanding loan portfolio to cover the overheads associated with servicing the portfolio. This servicing margin is required to ensure the platform remains sustainable and can continue to service the loan portfolio without interruption. As a result of the COVID-19 crisis, the platform’s revenue has dropped from approximately £0.75m per month to near-zero. We want to highlight that we have also implemented a significant cost reduction plan in the business during this period, within which approximately one-third of our team will be placed on furlough under the government's Job Retention Scheme, while the remainder will be taking a 20% salary reduction, including the founders and directors. Which ever word you use, they have frozen your money, you are not receiving any interest and the platform is taking 2% from the interest you can't have. ! So your interest, which is going back in to the shield to protect us, they are then taking 2% of that for themselves/keep the platform open Other P2P's Im in - This is the current situation , who knows what the future holds. Ratesetter -Money not frozen, but a huge queue to release funds, Paid all interest up to End of April but have now cut future interest by 50% Assetz Capital - Money not frozen -now charge a 0.9% management fee on active loans - interest paid as usual but non Access portfolios are all paying 3.75% rather than the set rates JUSTUS. - 2nd hand market frozen , but business as usual, strangely they pay you 1.2% to hold money on your account - (which was paid for Mar/Apr), not sure I would trust that though- Im told that money is held in an escrow within their business account, so effectively you have FSCS (if you believe them) FYI lots of stocks have risen between 20-50% in April and some still rising so huge missed opportunity for some.
|
|
|
|
Post by jojo on May 7, 2020 10:23:34 GMT
I am not sure I understand and not sure it is a right assessment in my opinion to say that "we are being charged to be on the platform". (it is misleading) I have not seen any money being taken "as a charge" on my account, i have repayment done as usual with no interest paid yes, but i don't consider that as a charge. We have seen all platforms being in the same boat. I didn't like the fact that no interest are paid and it was not possible to draw, now, after reflection and observation of what is going on elsewhere, I very much appreciate that LW have reacted very quickly (the first one from my knowledge) , to avoid having to deal with more unsecure borrowers and was looking to use interests to boost the shield (pf) to cover future arrears. (i prefer to miss some interests for some months than lose capital). I think that past/current lenders are going to take some of the pain from the current situation in any platform ( interest frozen for some time) but I still think that new lender will have much better conditions to invest after the crisis, ie : rates still around 4% so better than BOE and normal retail banks and protection fund will be stronger too. Maybe charge is the wrong word, how about I use the word service margin then. www.lendingworks.co.uk/legal-informationDuring the Normalisation Period, Lending Works will receive a pro-rated servicing margin of 2.0% p.a. of the outstanding loan portfolio to cover the overheads associated with servicing the portfolio. This servicing margin is required to ensure the platform remains sustainable and can continue to service the loan portfolio without interruption. As a result of the COVID-19 crisis, the platform’s revenue has dropped from approximately £0.75m per month to near-zero. We want to highlight that we have also implemented a significant cost reduction plan in the business during this period, within which approximately one-third of our team will be placed on furlough under the government's Job Retention Scheme, while the remainder will be taking a 20% salary reduction, including the founders and directors. Which ever word you use, they have frozen your money, you are not receiving any interest and the platform is taking 2% from the interest you can't have. ! So your interest, which is going back in to the shield to protect us, they are then taking 2% of that for themselves/keep the platform open Other P2P's Im in - This is the current situation , who knows what the future holds. Ratesetter -Money not frozen, but a huge queue to release funds, Paid all interest up to End of April but have now cut future interest by 50% Assetz Capital - Money not frozen -now charge a 0.9% management fee on active loans - interest paid as usual but non Access portfolios are all paying 3.75% rather than the set rates JUSTUS. - 2nd hand market frozen , but business as usual, strangely they pay you 1.2% to hold money on your account - (which was paid for May, not sure I would trust that though) Im told that money is held in an escrow within their business account, so effectively you have FSCS (if you believe them) FYI lots of stocks have risen between 20-50% in April and some still rising so huge missed opportunity for some. Ok, I got your point on the 2%, Thanks for the update on others platform, i am only following RS, and seems that 50% cut for future interest is equivalent of LW stopping interest for 3 months. For the stock markets , this is not the same asset class so hard to compare but fair assessment, i don't need in emergency my p2p money so i can still invest in stock markets, I think on this crisis, one of the issue is for people that have invest to much needed capital, this is why i think the FCA advice to put only 10% of savings money per p2p platform (and probably choose only 2-3 max) was a fair recommandation and like i have read on this forum, people can't use p2p as normal saving account and expect to have access to the money in hours, specially on those times. Just for the anecdote, on normal economic environment, I had once to draw money from an equity share plan from a broker which was very bad and took me 3 weeks to get the money so now i know nothing is granted.
|
|
easylender
Member of DD Central
Posts: 249
Likes: 225
|
Post by easylender on Jun 18, 2020 21:50:40 GMT
According to the monthly statement the annualised return on my growth ISA for May has been exactly 0%.
Due to the pause in retail investor funded loans 10% of my investment is now idle.
|
|
|
|
Post by overthehill on Jul 14, 2020 16:20:02 GMT
ernie : What's your interest rate like ? eric : rubbish !
My interest is currently 0% presumably because they are trying to recoup already paid interest against my dwindling capital as I've been withdrawing ever since the shock announcement a few months ago.
How long are they going to leave investors in the dark, you would think the longer the limbo lasts the more reputational damage caused. Are they going to continue the retrospective interest grab and for how long? Are they going to return the interest which has been grabbed back ? Is this takeover going to provide any good news for existing investors or just new investors ?
|
|
|
|
Post by essexboy on Jul 30, 2020 11:43:46 GMT
Anyone getting repayments?
I was getting regular daily repayments (all beit mostly small) but have received nothing for the last 2 days. These loans are mostly amortising aren’t they?
|
|
picnicman
Member of DD Central
Posts: 238
Likes: 216
|
Post by picnicman on Jul 30, 2020 12:54:23 GMT
Anyone getting repayments? I was getting regular daily repayments (all beit mostly small) but have received nothing for the last 2 days. These loans are mostly amortising aren’t they? - yes they are all amortising as far as I know - not had any repayments for a few days either, but has happened before - I'm assuming that either I am not invested in all loans or if so, there are loans not amortising everyday. If you download your loan book and strip out the chaff, you can see the dates on which repayments should be due, which should provide you with an answer? Just my take on things, but might be wrong - anyway hope this helps Cheers P
|
|
|
|
Post by essexboy on Jul 30, 2020 13:25:38 GMT
Cheers. Tried to download the loan book a while back and it wasn't working, but I’ll give it another go.
|
|
