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Post by d_saver on Mar 4, 2017 8:53:35 GMT
I would agree with the above. The most boring platform I have. That however is not a downside. It's simply deposit and forget at a rate above inflation. Funds seems to take an age (many months for me) to be loaned, but you do get interest during that time at the same rate as deployed funds, so that's a plus. Might be a concern for the platform though.
If it's this hard to put conventional funds to use now, what will happen when the ISA funds flood in, which I expect they already are. These seem to have been hugely popular elsewhere. How are opportunities split between people who use the ISA, and people who do not. Also, whilst I've not looked into it at all, I note the ISA product is paying an interest rate well above the conventional product. Unfortunately I cannot use the ISA product, so do not benefit. I understand there is a tax advantage for UK taxpayers, but why the different rate if the underlying investment is the same?
[edit] I just noticed the ISA does not pay interest until funds are lent out. Perhaps this accounts for the differing rates, given the possible long wait to get your investment deployed [edit]
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Post by khampson on Mar 5, 2017 10:14:32 GMT
How can a platform make money by paying interest on uninvested funds?
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Post by d_saver on Mar 6, 2017 10:25:37 GMT
How can a platform make money by paying interest on uninvested funds? I believe their response to this is that they are confident that their pipeline in future months will be enough to utilise the funds. As I see other platforms struggling in the same way though, we have to wait and see.
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Post by bikeman on Mar 20, 2017 11:57:37 GMT
Hi
Arrived here when searching for info on Landbay.
I've had funds sitting in the investment queue for 2.5 months. Granted I am getting interest but i'm concerned that Landbay's loan book is so slow. Despite reassurances from july last year it's still slow.
Of course if there's no new loans then interest is being paid from queued investments and doesn't that make Landbay a ponzi scheme?
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SteveT
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Post by SteveT on Mar 20, 2017 12:09:48 GMT
Of course if there's no new loans then interest is being paid from queued investments and doesn't that make Landbay a ponzi scheme? The statement you make would be a serious allegation, if true, and entirely in breach of FCA rules on management of client funds. I suggest that you withdraw it unless you have clear evidence. My presumption is that the "Cashback" paid on queued investments is coming from Landbay's own balance sheet (retained profits / shareholders funds). I agree that the situation cannot be sustainable indefinitely.
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Post by pepperpot on Mar 20, 2017 12:31:22 GMT
I'd expect to see some significant pipeline movement in the next 6 weeks or so. According to their most recent raise on seedrs (just about to close tomorrow) there are also some big plans due to be rolled out in '17 and they've got a some extra £££'s to spend on gaining momentum. They have always said their biggest restraint on new lending is £'s on the platform, even if several hundred people each have a few thousand waiting to lend, it might only be enough for a handful of new mortgages. Lots and lots of new mortgages is the intention.
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alant
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Post by alant on Mar 23, 2017 9:18:32 GMT
I too have had money invested since early January but it's still in a queue. Of course, like many others, I've put money in p2p to beat the dire 0.05% basic bank savings interest, but also I like to think I'm helping others to get loans and mortgages. I will monitor what's happening with Landbay, but at the moment I'm not going to invest any more money there.
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Post by johnnykash on Mar 23, 2017 11:01:22 GMT
I have thought for a very long time that Landbay does not appear to be in a healthy state. I have no facts but I say that based on the following:
1) They stopped lending for a very long time and even now, it appears to be slow. So where is their retail (non-investor-flows) income coming from? 2) They are paying interest to customers on money which is sat idle and not invested. That is not sustainable and will surely lead to collapse !? 3) For such a small operation that does not appear to be doing much lending at all, they seem to have a high staff count.
Landbay used to be my favourite platform but I withdrew my savings because essentially, I cannot personally see a bright future for Landbay. Deals and events which they are predicting will have a great impact don't cut the mustard for me. For example, a tiny fundraising round on Seedrs, the Zoopla deal, full FCA status, the IFISA product and the appointment of an ex Foundation BDC as director. None of those events solve the main problem of minimal lending.
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pom
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Post by pom on Mar 23, 2017 12:40:00 GMT
I suspect at least some of the delay is because they had to stop pre-funding loans. Probably made their pipeline a lot lumpier. Strangely when I look at the dashboard it says I have queued funds, but when I look at the transactions it seems everything's getting invested on the first day of the month anyway. So I'm not entirely sure how big an issue there really is?
EDIT - mine is all re-investments tho, which I guess may be prioritised over new money.
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Post by landbayceo on Mar 27, 2017 15:29:59 GMT
Just to give you all an update on the queue length and lending.
On Fixed rate products we would expect new funds to be lent out in the space of 2 weeks. In tracker it is likely to be nearer 6 weeks. There is currently far more activity in the market on Fixed rate Products. Mortages take a long time to complete, mainly due to the conveyancing process to ensure that we can take u good title 1st charge on the property we lend against. many p2p lenders take Title Insurance to speed the process up - in some cases we believe that this can present a risk and so we take the same line as most mainstream lenders on this. The result is that the process takes 2-4 months (and sometimes longer). Our current Mortgage Pipeline is 2.5 times the size of the queue and applications are coming in daily.
Again unlike the majority of p2p lenders around 80% of our revenue comes in over the course of the loan as opposed to up front lending fees. That means that our interests are more aligned with lenders and our revenue is more stable - ie we continue to generate revenue even when our monthly lending has been low.
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Post by nesako on Mar 29, 2017 12:49:12 GMT
Well, my Tracker investment from 23/01/2017 is still on the queue, so 9 weeks and counting
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alant
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Post by alant on Apr 8, 2017 20:40:43 GMT
It's now almost Easter and my investment has been sitting in the queue for 3 whole months. If it doesn't move soon I'm going to withdraw and move it to a p2p company which can lend it out to someone who needs it. I've just downloaded Landbay's loan book and they have issued just 5 loans in 2017 and only 8 in the last 12 months.
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Post by dan1 on Apr 8, 2017 21:15:43 GMT
It's now almost Easter and my investment has been sitting in the queue for 3 whole months. If it doesn't move soon I'm going to withdraw and move it to a p2p company which can lend it out to someone who needs it. I've just downloaded Landbay's loan book and they have issued just 5 loans in 2017 and only 8 in the last 12 months. My investment was placed on the tracker queue on 22nd December (2016!) and is still awaiting investment. They've paid cashback equivalent to the tracker rate up to now so at least my cash is earning whilst on the queue. It's not sustainable but these are long-term BTL investments (10 year) subject to somewhat seasonal demand (I guess things were markedly quiet following the end of the 2015-16 tax year when the 3% stamp duty for second-homes was introduced). Membership of the P2P Finance Association provides some comfort.
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phil
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Post by phil on Apr 9, 2017 0:09:05 GMT
I was in Landbay when I first started P2P and considered them a relatively safe P2P but low interest rates at around 3.5 - 4%. Landbay do have a small reserve fund safety net supposedly to protect lenders but I can't see that it's worth their low rates.
If I wanted to invest my money in what I'd personally consider the safer end of P2P then I'd probably go for the likes of Kufflink at around 6%, they take a certain percentage of the first loss. Another fairly good one is Lendinvest. I had over £220k in Lendinvest a year ago in approx. 80 loans at average 7%, only 3 loans have gone overdue but are still paying interest until their property sales are concluded.
Only criticism I have of Lendinvest is that in the past year they have changed their lending criteria, they are now doing a lot of 70-75% LTV single tranche loans. At one time most loans would be in two tranches at different rates so the cautious investor could invest in tranche A at around 50% LTV and receive 1%pa less than tranche B investors. I asked them why they changed and they told me investors prefer single tranches up to 75%. I personally don't like going to 75% LTV so I have withdrawn two thirds of my investment and mainly gone for Bridgecrowd and others offering 12% on loans that are less than 65% LTV. I still use Lendinvest for their low LTV loans. Currently they are offering 7.75% on 64% LTV - 7.75%pa development plot, not my cup of tea, I think 7.75% is too low for development, but horses for courses.
Relendex, Housecrowd offer at around 8-10% at what some may consider somewhat riskier than Landbay but I invest with them on their lower LTV bridging loans.
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Mick
Be nice... People respond.
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Post by Mick on Apr 10, 2017 12:05:31 GMT
Hi for the users of Landbay what are your reviews? No ISA Tracker investment available, fixed is there to be had, but three month projected wait for investment. You do get interest on money not invested but the funds go into an ordinary fund, not ISA. I find them a good fair company, but would struggle to do business with them at the moment. Personally I would not put any funds into a long term fixed rate at the moment.
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