ben
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Post by ben on Feb 27, 2016 23:04:16 GMT
shows how much the want the loan I suppose but also shows how desperate they are for it which may not be a good thing
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mikes1531
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Post by mikes1531 on Feb 28, 2016 4:22:45 GMT
Would not the rate of interest been already fixed? FS can hardly tell the borrower that as a result of concern with filling up the loan in good time would he/she not mind paying for the bonus? no looks like borrower is funding it , as taken from website As the borrower is now keen to complete this transaction, they have agreed to fund bonuses as follows: Investments of £25,000 and over 1% i.e. pays 13% pa Investments of £50,000 and over 2% i.e. pays 14% pa Investments of £100,000 and over 4% i.e. pays 16% pa We'll never know who's actually funding it. FS could be, but feels it would look better to say the borrower is. Is it better that the borrower looks like they want the loan to succeed, or that FS do? Maybe they've agreed to share the extra? Who knows? eascogo : Have you tried to work out the Rishton average interest rate? With 73% of the funding so far attracting bonuses, this is going to be an expensive loan for the borrower! From the listing taken at 16h50 only six investors qualify for a bonus (1@16%, 3@14%, 2@13%), one of whom put in £200k. The extra interest for those work out as £11,570*. * This figure should be halved if six months. There's still a £20k bid, but someone new must have chipped in, because at 0400 I see a fourth bid in the 2% bonus range. Total cost is now £12,720 p.a., which means the bonuses would increase the borrower's interest rate by 1.27% to 13.27%. The bonuses seem to be having the desired effect, as the loan is now 74% funded, though it's impossible to know how much the increases here have diverted money that otherwise would have gone to one of the other two loans being funded at the same time. PS. It looks to me as if £462k of the £743k raised so far has come from bids that will be earning bonuses.
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locutus
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Post by locutus on Feb 28, 2016 10:02:57 GMT
Shame. For me SS @ 12% is more attractive than FS @ 16% because of all the reasons already described elsewhere. With the struggle to fill relatively small loans, it seems I'm not alone. I can't believe FS can watch SS prefill a £4.6m loan with ease whilst they struggle for days to fill much smaller loans and still think everything is fine with their market offering to lenders. They don't seem to be able to take a hint.
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trevor
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Post by trevor on Feb 28, 2016 14:47:58 GMT
I see SS advertising for lenders all over the internet but FS nil. SS have no problem filling loans but FS do. I'm sure there's a correlation.
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duck
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Post by duck on Feb 28, 2016 15:18:27 GMT
I see SS advertising for lenders all over the internet but FS nil. SS have no problem filling loans but FS do. I'm sure there's a correlation. I suspect that is targeted advertising that follows you around because you have visited SS .......... I get it all over a motorcycle forum where I am a moderator, not very smart advertising since I already know about SS and have 3 accounts! Get the same with RS but to a lesser extent ......
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webwiz
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Post by webwiz on Feb 28, 2016 18:29:09 GMT
I see SS advertising for lenders all over the internet but FS nil. SS have no problem filling loans but FS do. I'm sure there's a correlation. I suspect that is targeted advertising that follows you around because you have visited SS .......... I get it all over a motorcycle forum where I am a moderator, not very smart advertising since I already know about SS and have 3 accounts! Get the same with RS but to a lesser extent ...... Every time I buy a product, and am therefore no longer interested in buying that product, I am bombarded with ads for that product. The industry is in its infancy and needs some work.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 29, 2016 2:48:58 GMT
I think there is a glut simply because FS has launched a lot of large loans this month. Their investors are also lending elsewhere. AC launched a massive loan last week and SS has launched 15m of loans in the last 2 weeks.
I'm impressed that FS are now stating when the loan starts paying interest. The 3 available loans should get filled fairly quickly because they are all offering backdated interest, even SS don't offer that.
As for the SM, FS should launch an ISA in April. Their SM model is ideally positioned for lenders to flip their loans into a tax-free account.
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mikes1531
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Post by mikes1531 on Feb 29, 2016 3:19:53 GMT
... FS should launch an ISA in April. : Are you basing that on some info from FS? Or just being hopeful they'll have one as soon as the new tax year starts? I'm expecting there to be delays everywhere because the details haven't been worked out by HMG. So I don't expect to actually see any IFISAs until later in the year, and when they do become possible I'd expect the first to come from the larger platforms, with the smaller platforms such as FS not having anything to offer at the very beginning.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 29, 2016 3:41:47 GMT
... FS should launch an ISA in April. : Are you basing that on some info from FS? Or just being hopeful they'll have one as soon as the new tax year starts? I'm expecting there to be delays everywhere because the details haven't been worked out by HMG. So I don't expect to actually see any IFISAs until later in the year, and when they do become possible I'd expect the first to come from the larger platforms, with the smaller platforms such as FS not having anything to offer at the very beginning. It's hope. I think P2P sites need to be fully FCA compliant before they can launch an ISA.
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webwiz
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Post by webwiz on Feb 29, 2016 8:12:17 GMT
I'm impressed that FS are now stating when the loan starts paying interest. The 3 available loans should get filled fairly quickly because they are all offering backdated interest, even SS don't offer that.. Yes they do.
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Hairbear
He who dares..wins (most of the time)
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Post by Hairbear on Feb 29, 2016 8:52:17 GMT
They certainly do, SS pay interest immediately you invest whether the borrower has drawn down or not.
Adding to the discussions above, FS have a large pipeline of loans coming through, AS THE FEEDBACK ON HERE GETS MORE NEGATIVE SO THE LOANS WILL TAKE LONGER TO FUND. I have tried to point this out in previous letter to FS , but seems to be falling on deaf ears.
A quick note on the Scottish boat yard default, im into this loan and now im getting worried, mainly because in the valuation document it clearly states that a quick 90 day sale would only value the yard at £250k.... same amount they have lent, I have a gut feeling this is going to be a proper pup.... LOSSES INEVITABLE I FEAR.
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ben
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Post by ben on Feb 29, 2016 9:13:27 GMT
They certainly do, SS pay interest immediately you invest whether the borrower has drawn down or not.
Adding to the discussions above, FS have a large pipeline of loans coming through, AS THE FEEDBACK ON HERE GETS MORE NEGATIVE SO THE LOANS WILL TAKE LONGER TO FUND. I have tried to point this out in previous letter to FS , but seems to be falling on deaf ears.
A quick note on the Scottish boat yard default, im into this loan and now im getting worried, mainly because in the valuation document it clearly states that a quick 90 day sale would only value the yard at £250k.... same amount they have lent, I have a gut feeling this is going to be a proper pup.... LOSSES INEVITABLE I FEAR. Not in that one but hopefully will not but sounds like a loss, hopefully not to big a loss. I have never put much in the property ones at FS as prefer them on AC and SS as at least most of the time they are either paying interest or already have so even if it does default there is that extra cushion, for example in your boat one if it defaults and they get the 250K for it they will be a little loss on FS by the time you take into accounts fee etc but on SS by the time you have included prepaid interest and the originally couple of % charge then the actually loss of capital will be a lot less
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Hairbear
He who dares..wins (most of the time)
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Post by Hairbear on Feb 29, 2016 9:21:43 GMT
I agree. I also use SS and it seems to be far more diligent than FS ... I wish I had looked more closely at the Scottish boat yard pup before investing, in reality the LTV could be 100% and even end up in negative territory , I have a feeling this is going to drag on for months and months and ultimately end in losses for all investors..... fingers crossed I hope im wrong.
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ben
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Post by ben on Feb 29, 2016 10:02:00 GMT
The amount of large loans FS has recently launched has been increased quite significantly sometimes they are doing 3/4 loans a day, unless they have a massive in house team proper due diligence can not be done on that. They need to reduce the loans on offer and improve the quality at the moment they seem to be going for whatever is available rather then seeing if it meets there target audience.
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hendragon
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Post by hendragon on Feb 29, 2016 10:46:36 GMT
The loans that have ,so far, fallen short on funding are all property loans. I looked back over my first 100 repaid loans and only 3 were property loans. The reason that I signed up with FS was to diversify away from property into smaller more easily disposed of items. Perhaps they need some sort of consolidated/portfolio loans (as do MT). As an investor I would rather invest in a platform with a property loan where I get my interest monthly.
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