Bootle loan

Didn't have 24 hours to reconsider my reinvestment ( was a LTV of 53.85% and on renewal is now 64.6% - an increase of well over 10%).

FS consider that slightly more than 22.5 hours to consider the change in LTV is more than adequate - which assumes you are "on line" and receive/ read the email in a timely fashion.

Will be following this up when I arrive back in the UK as I think the regulatory body should make a ruling as to the fairness of less than 24 hours to receive the information and make a decision when there has been a substantial change in the LTV.

And the increase in interest rate is a result of an increase in borrowing. I take your point though mikes1531. I pointed it out in order to direct people with renew button set and £5k to check rather than assume bonus rate remained as it was.

Good point mikes1531. I hadnt noticed on microsculptures. Wonder when cashback will be applied to fill it?

It's interesting isn't it that FS is one of the few (only?) places where interest rates have been on the rise over the last 12 months.

It is the sharp end of asset backed P2P lending though in my view, which is why they need to offer these rates. Defaults and extended lock-ins can and do happen regularly on FS. Still, I prefer living in the real world, rather than the peculiar simulcrum over on SS where there are almost no defaults apparently (appreciate this may/should change in a couple of weeks, although we'll see). I wonder if SS will need to offer similar rates once their non-forum userbase realise that P2P lending isn't 'saving'  

It could be either -- it'll depend on the specific agreement between FS and the underwriter.

SteveT:  Doesn't this also depend on the underwriting agreement?  I expect the underwriters are being paid more than 12% p.a. while their funds are tied up.  If FS think they're going to be paying the high underwriters' rates for an extended period then they might decide to offer incentives to fund the loan and get rid of the underwriters.  Having said that, though, the loan is nearly 60% full now and if they do offer incentives they'd probably have to give those to the investors already committed to the loan, so it might be cheaper for them to pay underwriter rates on part of the loan and 12% on the rest than to pay incentive rates on the whole loan.  There's also the possibility that the incentives wouldn't work and they'd end up paying incentive rates on part of the loan and underwriter rates on the rest.

ISTM that something -- probably FS's long list of overdue loans -- is taking a toll on investor confidence.  Whereas renewals used to go live on the platform showing to be 60-70% filled via rollover investments, nowadays the rollover percentage seems to be down to the 30-40% range.  (That's what happened with Southampton and Carlisle this week.)

I also find it misleading that FS quote a renewal as a new loan for statistics purposes just because they issue a new loan number. Skews the cummulative loans made figure in statistics making them meaninglass marketing tools. If they added orderbook size to the graph or a split of new originations and renewals then they would be giving the true picture. My belief is that the loanbook size is decreasing as loans get paid off and not renewed. Reduces opportunities for investment so FS then need to up the marketing sctivity.