gustapher
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Post by gustapher on Jan 8, 2018 23:08:53 GMT
I have a fair bit of this loan and TBH it doesn't concern me. The borrower is obviously desperate to keep this bit of land (In all fairness so would I, it is my idea of heaven!). I believe he will pay up, but just not sure when.
At the moment I just see this as a safe 12% income loan. Hopefully I am NOT proved wrong!  I hope so  At the moment I'm happy that it will be extended. Definitely a glitch (or less likely someone selling then cancelling). I've been building a small position in the first charge part of the loan over the last week or so and have been checking it frequently. The 2016 valuation looked good to me and I don't think it is likely to have reduced in value since then. Obviously a no-brainer going for the first charge over the second charge if you can get it but there looks to be a fair bit of headroom here either way.
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elliotn
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Post by elliotn on Jan 9, 2018 1:49:04 GMT
I presume the bonus intrest is not going to get paid out. Lendy had already all but confirmed in a previous update that the bonus accrual would not be paid as the loan was being extended. As the loan is being extended by 6 months it will no longer be IA but IOA. However, the borrower still needs to come up with the 6 months interest He’s made some capital repayments so there may be enough headroom to extend within the existing ltv.
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Post by skint4achange on Jan 9, 2018 9:03:32 GMT
I hope so At the moment I'm happy that it will be extended. Definitely a glitch (or less likely someone selling then cancelling). I've been building a small position in the first charge part of the loan over the last week or so and have been checking it frequently. The 2016 valuation looked good to me and I don't think it is likely to have reduced in value since then. Obviously a no-brainer going for the first charge over the second charge if you can get it but there looks to be a fair bit of headroom here either way. The other possibility is someone was "Rolling" all their loan parts into one. I do this sometimes if I have lots of smaller amounts in the loan and want to just have one loan part.
It can be risky sometimes, especially if the loan is popular and you don't choose the right time!! 
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gustapher
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Post by gustapher on Jan 9, 2018 9:47:12 GMT
Definitely a glitch (or less likely someone selling then cancelling). I've been building a small position in the first charge part of the loan over the last week or so and have been checking it frequently. The 2016 valuation looked good to me and I don't think it is likely to have reduced in value since then. Obviously a no-brainer going for the first charge over the second charge if you can get it but there looks to be a fair bit of headroom here either way. The other possibility is someone was "Rolling" all their loan parts into one. I do this sometimes if I have lots of smaller amounts in the loan and want to just have one loan part.
It can be risky sometimes, especially if the loan is popular and you don't choose the right time!!
Haha - yes that happened to me very recently. Thought I was safe at 4am but no, gone in an instant. Made me wonder if it was a bot but I could have been unlucky.
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elliotn
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Post by elliotn on Jan 9, 2018 14:02:46 GMT
The other possibility is someone was "Rolling" all their loan parts into one. I do this sometimes if I have lots of smaller amounts in the loan and want to just have one loan part.
It can be risky sometimes, especially if the loan is popular and you don't choose the right time!!
Haha - yes that happened to me very recently. Thought I was safe at 4am but no, gone in an instant. Made me wonder if it was a bot but I could have been unlucky. 11am for some investors 
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mikes1531
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Post by mikes1531 on Jan 9, 2018 22:56:50 GMT
The main upshot of extending rather than renewing seems to be that I and others won't be getting any bonus interest. Again. : I wouldn't expect to get any of my accrued PBL133 bonus interest even if that loan were to be renewed. If you need an example, look at PBL142. It got to -28 days and 0.46% bonus interest -- which, I must add, still shows on the website -- when it was repaid, but Lendy refused to pay the bonus interest. I made my investment in PBL142 after the bonus interest already had started accruing. At the time I invested, I recognised that I was taking a significant risk, but felt that the increased interest rate (including the bonus) made it worth taking that risk. By the end of the day, I had taken the increased risk but received no increased reward. I am really unhappy with Lendy moving the goalposts -- yet again! -- with that decision. In particular, IMHO if Lendy know that they aren't going to pay the bonus interest then they shouldn't let the website display it accruing!
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Post by skint4achange on Jan 9, 2018 23:35:43 GMT
I really do feel that when people are unhappy with the way Lendy are doing things , they should tag Paul64 to let someone who can make a difference know that there is a problem. To sit here and moan about it is achieving nothing until you know that someone in Lendy has been told.
Now, I will probably get told off for tagging Paul again, but I have never been known for being tactful! 
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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 Jan 10, 2018 8:56:43 GMT
I fully expect Lendy to pay the bonus because the loan has become seriously overdue. Lendy should have sorted out a secondary loan months ago if they wanted to avoid paying a bonus.
If they don't honour the bonus payment, then lenders won't chance buying loans that go negative. It's a high risk strategy buying negative term loans, plus the interest rate is actually slightly lower, because the interest isn't compounded monthly. When Lendy introduced bonuses, I don't remember them suggesting it would be discretionary. Lendy cannot be sure that the secondary loan will go ahead, so the risk is currently very high.
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ingwer
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Post by ingwer on Jan 10, 2018 9:26:45 GMT
From the FAQs on Lendy's support site:-
"The bonus accrual feature will pay an enhanced monthly interest rate of 50% of the existing monthly interest rate. For example, a 12% annual loan paying 1% interest per month would accrue 0.5% of the monthly bonus. This will accrue over the remaining Tolerance Period, and will only be payable once the loan has been repaid, if we are successful in recovering sufficient property proceeds.
As an example, if a loan is 180 days overdue in the Tolerance Period the investor would receive a bonus accrual of 3%.
The bonus is attached to the loan part and is payable to whoever owns the live loan part at the date of repayment.
Notes:
* if a loan is extended, taking it out of the Tolerance Period and back into a new extended loan period which attracts interest at the published rate, any bonus accrued will be cancelled.
* if a loan part is up for sale - therefore not live - a bonus will not be paid."
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jezza
New Member
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Post by jezza on Jan 10, 2018 15:40:20 GMT
I was in PBL142 which did not extend or renew, it was brought to the platform as a DFL under a new guise/terms. Kindly pointed out above that it did not pay the bonus
This will be added to the list of complaints I make, all individual of course as there need to be 500 for it to have any bearing where the FCA are concerned, it’s a shame more people don’t follow the official complaints route as eventually it will have some effect if enough people follow it, bad ratings on trust pilot just won’t cut it.
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Post by skint4achange on Jan 10, 2018 16:19:17 GMT
I fully expect Lendy to pay the bonus because the loan has become seriously overdue. Lendy should have sorted out a secondary loan months ago if they wanted to avoid paying a bonus. If they don't honour the bonus payment, then lenders won't chance buying loans that go negative. It's a high risk strategy buying negative term loans, plus the interest rate is actually slightly lower, because the interest isn't compounded monthly. When Lendy introduced bonuses, I don't remember them suggesting it would be discretionary. Lendy cannot be sure that the secondary loan will go ahead, so the risk is currently very high. The trouble with your statement above is the Lendy would not care if lenders do not buy parts in a loan that go negative. They have already offloaded the risk onto whoever owns the loan part. Do not be confused into thinking that you are buying a IA loan part from Lendy! They have washed their hands of it long before it becomes IA from IOA.
The other thing to remember is that Lendy state "if a loan is extended, taking it out of the Tolerance Period and back into a new extended loan period which attracts interest at the published rate, any bonus accrued will be cancelled."
This is a fine get out clause for any borrower who has gone over their loan terms. All they have to do is pay outstanding interest the day before they pay the loan and save themselves a bucket load of money!
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mikes1531
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Post by mikes1531 on Jan 12, 2018 17:29:50 GMT
My guess is that Lendy are probably paying the bonus interest out of their portion of the overall interest (so rather than making 6% on interest, they are making 3%) which they (Lendy) may be able to claw back from the borrowers by way of late payment fees. I agree with @new2p2p's conclusion, but not with the numbers -- for a 12% loan, the bonus interest is 6%. If that's Lendy's share of a performing loan then they'd be giving away their entire margin during the Tolerance Period. So I'd be willing to bet that they're charging borrowers hefty late payment penalties and default interest rates in order to retain some margin during the TP. I also suspect that it's likely that borrowers don't benefit in those cases where Lendy decide not to pay the accrued bonus interest to investors but, of course, that's just based on my feelings about Lendy rather than on any facts..
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Post by skint4achange on Jan 18, 2018 13:42:23 GMT
OMG!! Lendy have just paid outstanding interest from the original loan AND ALL OUTSTANDING BONUS ACCRUALS!!!!!  |
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webwizard
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Post by webwizard on Jan 18, 2018 13:55:16 GMT
Presumably that was the purpose of the second charge loan to clear the arears, so not a complete surprise.
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Post by skint4achange on Jan 18, 2018 14:02:02 GMT
Presumably that was the purpose of the second charge loan to clear the arears, so not a complete surprise. No, clearing the arrears was not a surprise, the payment of the BONUS ACCRUAL was so surprising I have just had to defibrillate myself!
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At the moment I'm happy that it will be extended.
