bugs4me
Member of DD Central
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Post by bugs4me on Jun 26, 2015 10:15:06 GMT
When Lendy/SavingStream change their system so that we are lending to individual borrowers and NOT to Lendy that should make the platform safer. IIRC, this was on a list of 'things to do' from SS a few months ago. In the absence of same, I have a strict limit on my exposure to the platform. The headline rates are great but of course you've still got to collect them. Unfortunately (said with tongue in cheek), whilst the demand exceeds the supply then there is little incentive on the part of SS to make sure this subject has a big urgent rubber stamp on it.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jun 26, 2015 21:57:37 GMT
I agree in principle that notification should be given when loans are extended but, in terms of for example the yacht loan, at 15% ltv & the fact the asset is fairly secured & not floating about, one can be quite relaxed extensins-wise. I have however taken others' advice on board & will sift through my loans & reduce accordingly until the trust structure is sorted properly (have been promised this many months ago!). Better be safe than sorry for the sake of a few quids' interest per year.
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sam i am
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Post by sam i am on Jul 2, 2015 16:56:15 GMT
Looks like the loan extension for PBL015 which was announced in the recent update has now gone live. It shows 97 days outstanding which takes it into October.
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mikes1531
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Post by mikes1531 on Jul 3, 2015 10:44:02 GMT
I recommend deciding on your total potential investment in SS, dividing by 20 and spreading your investment over 20 loans. You could then suffer a total loss on 3 loans and still be ahead. : I'm afraid I don't follow the above calculation. If I put 5% of my investment into each of 20 loans and three of those are total losses, then I will have lost 15% of my capital. The 12% interest on the successful 85% would be just 10.2% of my capital, so it looks to me like I'd have a 4.8% loss overall rather than being ahead as suggested above. Am I doing something wrong? Furthermore, not all SS loans are for a full 12 months, so those loans wouldn't generate the full 12% interest and that would make my loss even larger. Then there's the tax effect where, until the law actually is changed as HMG have suggested they intend to, taxpayers have to pay income tax on the 10.2% of income received in the example above and get no relief at all on the 15% of losses suffered.
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webwiz
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Post by webwiz on Jul 3, 2015 20:54:00 GMT
I did say could rather than would. It all depends on a number of factors. You can expect to get some interest payments before the loan defaults. There should be something to be recovered from the asset. There might be a payout from the Provision Fund. All things considered you would be very unlucky to be losing money if 85% or more of your loans repay OK. The govt have said that will allow bad debts against tax this year, although they have not d one so yet. I have assumed that repaid loans are always rolled over into new loans quickly.
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