DFL005 - Arboretum, Land with PP - SUSPENDED

Looks like I am to be dragged screaming and kicking into a refinance.  I wanted out like now.   If Lendy want happy investors they should fix the secondary market by abolishing fixed pricing.  Another 6 months of this squirming and wriggling is not my cup of tea. 

It's this sort of thing which is making LY the most profitable p2p platform by far.

NO doubt Lendy are stringing the borrower up be his balls with fees etc for this refinance but us lenders continue on the same terms as before.

We should be given the option to opt out and have repayment ,then a new loan placed on the platform. I only invested in the last tranche as I was led to  believe repayment was within 1-2 months.I can see  a full repayment years away if ever

Yes it's a good point and also agree with GSV3MIaC above, after mulling it over and thinking back over the loan history. I'm sure I'm not alone in being overweight in this one and the plea from Lendy to get the last tranche filled to get this done on the premise that repayment would follow shortly seemed acceptable at the time. The partial payment will reduce exposure but it's not the outcome we were expecting.
Given the new situation and that the security package has changed this should be launched as a revised PBL ideally and lenders can judge it on its merits. Instead existing lenders are effectively locked in.
I don't know the reality of a new PBL getting filled and not sure where that would leave us other than to force the borrower to refinance to another platform and repay the remaining loan amount. From Lendys perspective this is probably still viewed as a good earner and why risk losing it to another platform.

I tend to think that this is a new loan under new terms, with old lenders being railroaded in to being a part of it. A finished working project at around 50 percent LTV would go down well I feel and give current lenders their long awaited exit.


I also wonder where this "working capital" is going. There is a good argument to suggest all proceeds of this sale should be going to lenders and if the working capital is going to the borrowers other businesses, that's not on at all.

I don't know either, but I suspect Lendy have seen from the performance of the most recent loans released that they couldn't count on sufficient support to launch a new PBL and simply hope enough investors would allow their DFL005 funds to be rolled over into the new PBL.  They also know what happened with the interest credited to investors' accounts a few days ago, and we can guess it wasn't what they would have liked.  As a result, IMHO they feel they have to lock their DFL005 investors into an extension in order for it to work.

About all that those who would rather have had an easy exit can hope for is that the principal reduction and the consequent LTV decrease, plus a promise -- could we be so lucky? -- that there will not be further tranches offered, coupled with the extension, will make the parts of the continuing loan attractive enough to investors that the backlog of parts on the SM will be taken up and those who want to exit can do so without having to stand in the SM queue for an excessive time.

I suppose I really ought to put my rose-tinted specs away now! 

Agree. I don't think L knows how to judge the 'electorate'. Think "commercial decision" or action to 'gain trust' could do a lot.

L could make the decision to clearly list what terms apply to each loan, rather than when I asked, referring me to the risk statement (if the terms are cloudy, how would anyone know the risk?). Diversification doesn't work when there are multiple loans, not just in default, but are looking like they won't be recovered.

L now known from press to be one of the most profitable p2p.

One of the things I pick up, is that L seem to have blind faith in their capabilities. So what would prompt them to think a "commercial decision" is required? And would FCA rules permit?