paulgul
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Post by paulgul on Jun 30, 2016 8:28:49 GMT
I didn't realise that on loans being renewed for those that chose not to renew we had to wait until the renewal was fully funded before we are paid.
I just queried this with FS regarding the Bootle loan as i was waiting for repayment (loan ended 24th June) and as the renewal is only 48% funded I might have a long wait, I didn't ask what happens if the loan doesn't get funded, perhaps I should have done.
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hendragon
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Post by hendragon on Jun 30, 2016 9:55:29 GMT
This is one of mine too. The current lenders hold the loan until it is fully funded. The Microsculptures took quite a while to fund but did so eventually. Iirc the Bexlexy Heath loan took 20 days. In the event of the loan only being part funded I would expect FS to give a pro-rata repayment to thise who have chosen not to renew.
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paulgul
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Post by paulgul on Jun 30, 2016 10:10:02 GMT
I'm not very happy with fundingsecure over this, perhaps I didn't read all the details but I assumed it would be like MT, if you chose not to renew you would get the loan repaid at the end of the designated period and not have to wait until the renewal was fully funded, they are after all separate loans. I will certainly think twice before making further investments with FS |
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ben
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Post by ben on Jun 30, 2016 10:29:44 GMT
I have read in one of previous posts from FS that you hold the loan until it is renewed if you choose not to renew. I am sure they also said you still got the interest for it a bit like selling it on the secondary market. MT uses its own funds to cover the renewal period.
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stevio
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Post by stevio on Jul 12, 2016 17:29:17 GMT
This is a tad unfair
So if you renew or not, do you get interest while it's filling up to renew?
eg if you DON'T renew is the end date extended till the renewal is fully funded and interest paid?
OR
if you DO renew is the start date for interest from when it started funding for renewal?
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SteveT
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Post by SteveT on Jul 12, 2016 17:51:10 GMT
This is a tad unfair So if you renew or not, do you get interest while it's filling up to renew? eg if you DON'T renew is the end date extended till the renewal is fully funded and interest paid? OR if you DO renew is the start date for interest from when it started funding for renewal? Lenders in the original loan continue to accrue interest up to the point the original loan is completed and interest is paid, which can only happen once the renewal loan is filled and ready to activate, whether or not they are renewing.
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paulgul
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Post by paulgul on Jul 13, 2016 15:37:17 GMT
Regarding my original post on renewals, particularly the Bootle loan, I received a reply from FS finance manager to the effect if the renewal is not fully funded after 30 days the borrower is asked to repay the loan, if not, the loan is put into default.
As the Bootle loan is still at 51% 3 weeks after the renewal of the previous loan it looks like a repayment or default is on the cards
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sqh
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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 Jul 13, 2016 16:55:02 GMT
Perhaps lenders who didn't rollover should ask to change their decision, and rollover. Then the loan would fill and could then be sold on the SM at a small discount. In this case I believe it would be a better solution than allowing a potential default.
EDIT: I would happily buy this loan at a 1% discount.
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hendragon
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Post by hendragon on Jul 14, 2016 8:46:01 GMT
posted in error
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mikes1531
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Post by mikes1531 on Jul 14, 2016 17:52:34 GMT
Regarding my original post on renewals, particularly the Bootle loan, I received a reply from FS finance manager to the effect if the renewal is not fully funded after 30 days the borrower is asked to repay the loan, if not, the loan is put into default. As the Bootle loan is still at 51% 3 weeks after the renewal of the previous loan it looks like a repayment or default is on the cards That loan is up to 59% funded now, so that's looking a bit more hopeful, though there's more competition for funds because of other loans posted today. Having a loan, particularly a renewal, fail to be funded and become a default would be a significant embarrassment for FS, so I expect them to try to avoid that if at all possible. They might be able to use some of their own funds to top up the loan, or they might decide to offer incentives to lenders, or they might even call in underwriters.
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stevio
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Post by stevio on Jul 14, 2016 18:00:04 GMT
Regarding my original post on renewals, particularly the Bootle loan, I received a reply from FS finance manager to the effect if the renewal is not fully funded after 30 days the borrower is asked to repay the loan, if not, the loan is put into default. As the Bootle loan is still at 51% 3 weeks after the renewal of the previous loan it looks like a repayment or default is on the cards That loan is up to 59% funded now, so that's looking a bit more hopeful, though there's more competition for funds because of other loans posted today. Having a loan, particularly a renewal, fail to be funded and become a default would be a significant embarrassment for FS, so I expect them to try to avoid that if at all possible. They might be able to use some of their own funds to top up the loan, or they might decide to offer incentives to lenders, or they might even call in underwriters. Could be just extending the date of default 6 months then though
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stevio
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Post by stevio on Jul 15, 2016 5:15:25 GMT
This is a tad unfair So if you renew or not, do you get interest while it's filling up to renew? eg if you DON'T renew is the end date extended till the renewal is fully funded and interest paid? OR if you DO renew is the start date for interest from when it started funding for renewal? Lenders in the original loan continue to accrue interest up to the point the original loan is completed and interest is paid, which can only happen once the renewal loan is filled and ready to activate, whether or not they are renewing. For those that DO renew, when does the initial 6 month period interest get paid, at renewal or at the end of the loan effectively as 12m interest? I suppose there isn't much difference for a 6m period of interest paid monthly and reinvested vs at the end, but more over a 12m period (or longer if it takes 30d for renewal and the initial filling)
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duck
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Post by duck on Jul 15, 2016 5:30:36 GMT
For those that DO renew, when does the initial 6 month period interest get paid, at renewal or at the end of the loan effectively as 12m interest? At renewal. The loan is given a new number and interest for the old loan is paid against the old number.
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Post by bluechip on Jul 15, 2016 14:05:41 GMT
That Bootle loan did jump from 51% to 59%, but there have only been only a handful of people invest in several weeks now. There was one £25k investment this week that made it seem like the loan was gathering momentum I notice. I'm not happy with the amount of money I have locked up in loans that are well overdue, I haven't renewed any recently as I wanted to move some money out of FS and into other things, but that is proving to be very difficult unfortunately.
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