p2pfan
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Post by p2pfan on Mar 28, 2023 0:53:10 GMT
This is marvellous news indeed. A big pat on the back for KufLink. I hope it's actually enacted now and lenders are paid extra for 're-termed' loans. It'd be refreshing if, for once, a Peer-to-Peer network didn't just bend over backwards to appease borrowers. It's definitely enacted - one of my recently extended investments is now earning 9.5%. In the last week, Kuflink have sent emails to lenders to several different loans that have defaulted and are all being extended. Strangely, not one of the emails refers to an increased interest rate payable to lenders. Where's the promised enhanced rates for re-termed loans?
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Post by birdie on Mar 28, 2023 8:10:41 GMT
It seems to be different with each borrower , I have some that have been re-termed at the same rate and some have been increased by up to 9.65% .
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Post by Badly Drawn Stickman on Mar 28, 2023 8:28:03 GMT
It seems to be different with each borrower , I have some that have been re-termed at the same rate and some have been increased by up to 9.65% . Something they should include in the emails fairly prominently I would suggest. Somewhat of a faff to have to hunt down. Actually maybe they do, the emails are now that frequent I tend not to have more than a quick scan.....
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scooter
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Post by scooter on Mar 28, 2023 9:04:27 GMT
It seems to be different with each borrower , I have some that have been re-termed at the same rate and some have been increased by up to 9.65% . Something they should include in the emails fairly prominently I would suggest. Somewhat of a faff to have to hunt down. Actually maybe they do, the emails are now that frequent I tend not to have more than a quick scan..... "Actually maybe they do, the emails are now that frequent I tend not to have more than a quick scan..." I treat it like a game of bingo, marking them off on my spreadsheet. Whilst I'm sure they work hard, they don't get that message across to investors. They sound wet and weak and the borrowers seem to be running the show.
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firedog
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Post by firedog on Mar 28, 2023 9:47:25 GMT
Something they should include in the emails fairly prominently I would suggest. Somewhat of a faff to have to hunt down. Actually maybe they do, the emails are now that frequent I tend not to have more than a quick scan..... They don't. The interest rate on one of my re-termed loans was bumped, but the update did not mention the change of interest rate, and it was only mentioned (without giving details) in the mid-March general announcement. It's not mentioned in the loan updates either; you have to go into the agreement schedule to see the detail (in my case up from 7.02% to 9.51%). More transparency would be helpful.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 28, 2023 12:01:45 GMT
Personally I think the information provided by Kuf in relation to loans has major issues, possibly even regulatory compliance questions
It is not easy to ascertain how much money has been actually lent for self select lenders as tranches dont actually display the full sum advanced and are frequently missing (I assume this is the bits funded by autolend/KBL)
Occasions where Kuflink does not amend the loan expiry date on loans that have over run, so subsequent tranches are misleading (a possible in breach of COBS) eg B*****ks which is listed as ending 21 Apr on recent T11 but MS clearly states wont be done until Jun in attached valuation.
Are Kuflink really taking no spread/fees on these deals? Somewhere there must be some cost to the borrower that isnt disclosed (KBL fees/spread)
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p2pfan
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Post by p2pfan on Mar 28, 2023 12:34:02 GMT
Something they should include in the emails fairly prominently I would suggest. Somewhat of a faff to have to hunt down. Actually maybe they do, the emails are now that frequent I tend not to have more than a quick scan..... They don't. The interest rate on one of my re-termed loans was bumped, but the update did not mention the change of interest rate, and it was only mentioned (without giving details) in the mid-March general announcement. It's not mentioned in the loan updates either; you have to go into the agreement schedule to see the detail (in my case up from 7.02% to 9.51%). More transparency would be helpful. Thanks for your feedback. I've checked the Agreement Schedule of several of my loans that have defaulted and extended in the last week and not one of them shows a higher rate of interest. By way of example, H****field Ave, HD3, is still showing an "Annualised Compound Interest" to the "Lender" of "7.02%". (The "Gross Monthly Rate of Interest" to the "Borrower" shows as "1.00%", so KF are taking their usual very hefty chunk.) Are other people seeing the Agreement Schedules showing higher rates of interest for all their re-termed loans? As I mentioned in my first post about these much-hyped higher interest rates in the cases of defaults and subsequent re-terms, I suspect it was just marketing hype and KF have conveniently chosen to forget what they promised.
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p2pfan
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Post by p2pfan on Mar 28, 2023 12:36:28 GMT
Personally I think the information provided by Kuf in relation to loans has major issues, possibly even regulatory compliance questions It is not easy to ascertain how much money has been actually lent for self select lenders as tranches dont actually display the full sum advanced and are frequently missing (I assume this is the bits funded by autolend/KBL) Occasions where Kuflink does not amend the loan expiry date on loans that have over run, so subsequent tranches are misleading (a possible in breach of COBS) eg B*****ks which is listed as ending 21 Apr on recent T11 but MS clearly states wont be done until Jun in attached valuation. Are Kuflink really taking no spread/fees on these deals? Somewhere there must be some cost to the borrower that isnt disclosed (KBL fees/spread) Well-spotted. Your level of diligence on these matters is on a different level to myself. I also work in a different sector of finance and the amateurish way all P2P platforms are allowed to handle matters wouldn't allow them to even get to the starting line in other parts of the industry.
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ilmoro
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Post by ilmoro on Mar 28, 2023 13:37:14 GMT
They don't. The interest rate on one of my re-termed loans was bumped, but the update did not mention the change of interest rate, and it was only mentioned (without giving details) in the mid-March general announcement. It's not mentioned in the loan updates either; you have to go into the agreement schedule to see the detail (in my case up from 7.02% to 9.51%). More transparency would be helpful. Thanks for your feedback. I've checked the Agreement Schedule of several of my loans that have defaulted and extended in the last week and not one of them shows a higher rate of interest. By way of example, H****field Ave, HD3, is still showing an "Annualised Compound Interest" to the "Lender" of "7.02%". (The "Gross Monthly Rate of Interest" to the "Borrower" shows as "1.00%", so KF are taking their usual very hefty chunk.) Are other people seeing the Agreement Schedules showing higher rates of interest for all their re-termed loans? As I mentioned in my first post about these much-hyped higher interest rates in the cases of defaults and subsequent re-terms, I suspect it was just marketing hype and KF have conveniently chosen to forget what they promised. Thats interesting as none of my Agreement Schedule feature a Gross Interest rate to the Borrower, (that I can see) so there is some spread to Kuf on some loans. I question whether this shouldnt actually be clear on the loan page not buried in the small print visible only when you actually invest. Looking at the loan you reference, which I dont hold, it would seem to highlight the points I made. COBS requires information on full interest rate (incl fees), expiry, payment frequency/amount, total payable. This information must be updated to reflect any material change and the info must accessible to a lender. While Kuflink appears to comply in someway with these requirements, it isnt exactly easy to get a true picture without rummaging around in MS reports, updates etc. I do note form the update that the reterm hasnt actually been completed so that may be why the documents dont reflect the changes. My other question would be how is the interest being covered for the extension as that isnt mentioned, will that increase the loan/LTV? How much the borrower has actually borrowed is a mystery.
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rscal
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Post by rscal on Mar 28, 2023 15:10:19 GMT
Why not put in a 'FOI request' .. I mean raise the concerns in a formal email asking about the policies here? I get the impression KUF listens but doesn't always think and we can help guide them to the light with targeted enquiries.
Is it not significant that I have SEVEN INDEPENDENT loans with the SAME ostensible reason given by Kuflink not moving ahead? Namely:
"We have not received the information we require to consider a re-term and so have been unable to agree any additional time."
24/3 Ch#### Road UB3
27/3 Sh#####d Cr####nt RH2
27/3 E##t H#l# SW18
27/3 W#o# St#e## LE9
27/3 Re# A# B###hva TR27
28/3 Chu##h D###e NW9
28/3 C#rr#th#rs cl#s# OL10
So 'time' is now so pressing for KUF it can't hold over these loans outstanding any longer? Where did the time go? And why did it expire on independent deals at the same time?
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p2pfan
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Post by p2pfan on Mar 29, 2023 12:14:46 GMT
Why not put in a 'FOI request' .. I mean raise the concerns in a formal email asking about the policies here? I get the impression KUF listens but doesn't always think and we can help guide them to the light with targeted enquiries. Is it not significant that I have SEVEN INDEPENDENT loans with the SAME ostensible reason given by Kuflink not moving ahead? Namely: "We have not received the information we require to consider a re-term and so have been unable to agree any additional time." 24/3 Ch#### Road UB3 27/3 Sh#####d Cr####nt RH2 27/3 E##t H#l# SW18 27/3 W#o# St#e## LE9 27/3 Re# A# B###hva TR27 28/3 Chu##h D###e NW9 28/3 C#rr#th#rs cl#s# OL10 So 'time' is now so pressing for KUF it can't hold over these loans outstanding any longer? Where did the time go? And why did it expire on independent deals at the same time? This is an important point you make. Worth asking Kuflink about it? Defaults on Kuflink are nothing new and almost all loans go into default, but, as you rightfully state, what is particularly worrying about this raft of loans is that, as per Kuflink's emails, they have "been unable to agree" terms with the borrowers. I sincerely hope all these loans don't become very messy and go into long receiverships etc.
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p2pfan
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Post by p2pfan on Apr 4, 2023 21:50:56 GMT
Email about another loan today where KF have been "unable to agree any additional time" with the borrower and another one that is going to go into Receivership.
Is the ever-increasing number of problem loans worrying?
How many of your KF loans in trouble?
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Post by Ace on Apr 5, 2023 0:09:48 GMT
In my longest running account, 36 out of 53 unique loans have needed an extension. Of those, 45 have already repaid, 29 of which needed an extension. Only 1 has mention of a receiver.
It seems to be par for the course, both here and on other platforms, that PDLs often require extensions. No doubt some of those will have been due to genuine Covid issues, but even outside of the time when Covid effected projects there are still many extensions required.
My stats may not be a true reflection of the whole loanbook as I don't have much capital deployed on K, so will only have been in a small percentage of the loans. I'm fairly relaxed about it given the large number of loans that have fully repaid after being extended. I stick to first charges on K, so even if the odd loan does suffer some capital loss, I would expect the bulk of the capital to be retrieved. Therefore I wouldn't expect it to have a large impact on my XIRR. Famous last words, they'll probably all go bang tomorrow now I've written that!
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Post by uksoul on Apr 5, 2023 0:32:46 GMT
Email about another loan today where KF have been "unable to agree any additional time" with the borrower and another one that is going to go into Receivership. Is the ever-increasing number of problem loans worrying? How many of your KF loans in trouble? 7 - 4 being re termed, 3 with receivers. Kuflink has a perfect track record of dealing with default loans so not too concerned. Their loan book has increased considerably over the past year so an uplift in the number of defaults expected.
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p2pfan
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Post by p2pfan on Apr 5, 2023 18:59:52 GMT
Interesting to read the numbers of extensions, defaults and receiverships. Thank you.
Straightforward 're-terms' are one matter, the concern I have is the significant ratio of loans that are now in a position where KF has not been able to agree terms for an extension with the borrower. It seems like those borrowers are simply co-operating. Those and receiverships are a different level of concern to lenders to an agreed extension.
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