c88dnf
Member of DD Central
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Post by c88dnf on Apr 10, 2017 16:06:46 GMT
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andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Apr 10, 2017 16:18:10 GMT
I guess the next question is which, if any, site would people recommend as an alternate venue with good deal flow and liquidity for property lending?
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james21
Member of DD Central
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Post by james21 on Apr 10, 2017 16:26:25 GMT
For me I wont be interested in small business lending with any platform, as I see it small business investment = lower interest rates, long periods to invest often 5 yrs and no security offered. All my investments in FC are property based, so I will not be investing in FC once property loans cease and I dare say there will be many folk like me
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mikeb
Posts: 1,072
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Post by mikeb on Apr 10, 2017 16:30:42 GMT
Maybe the "experienced property team" have realised what a massive chunk they've bitten off, and have finally realised that they can't keep all the plates spinning any longer.
When you see how many un-repaid property loans are being re-financed and re-re-financed, you've gotta wonder when the music will stop, and who will be holding the duff loans?
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SteveT
Member of DD Central
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Post by SteveT on Apr 10, 2017 16:33:08 GMT
My guess is that they've realised property loans need a fair bit of hands-on management and monitoring, requiring expensive real people rather than cheap computer credit-scoring algorithms. Also there's near-bottomless demand from SME borrowers and FC are now flush with cash after raising another £142m in the investment trust (whose Directors don't want property loans). Why make money the hard way when you can churn out Auto-bodge fodder until the cows come home?
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voss
Member of DD Central
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Post by voss on Apr 10, 2017 16:38:09 GMT
Perhaps this will affect the deal flow over at SS.
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trevor
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Post by trevor on Apr 10, 2017 17:27:37 GMT
I had reduced my lending to FC from 20% to 10% of my total P2P by lending to property only as I was getting too many defaults on SME's leading to an overall low rate. This will mean my FC lending will run down to zero.
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ptr120
Member of DD Central
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Post by ptr120 on Apr 10, 2017 18:35:08 GMT
This will mean my FC lending will run down to zero. Mine will head in the same direction - if it wasn't anyway due to the shambolic handling of the late London loans. Perhaps their highly experienced property team aren't so experienced after all? In any event, property loans will continue to exist on the platform for at least the next two years based on the current loanbook (and perhaps longer taking in to account current overruns) - the only difference is that by that time they won't have a highly experienced property team to oversee those loans as they will all have left for pastures new!
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trevor
Member of DD Central
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Post by trevor on Apr 10, 2017 18:53:19 GMT
My initial thought was to carry on lending to property loans but if they are running down the staff as well as the loan and take their eye of the ball then the victims will be the lenders. Maybe wise to stop investing in new loans now rather than 2018.
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blender
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Post by blender on Apr 10, 2017 18:54:25 GMT
The experienced property team (learning on the job) may take their experience to other p2p lenders. How could we know which?
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fasty
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Post by fasty on Apr 10, 2017 19:47:24 GMT
The experienced property team (learning on the job) may take their experience to other p2p lenders. How could we know which? Do I need to look out for new vehicles arriving at Brankesmere House just down the road from me?
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Post by carpecyprinidae on Apr 10, 2017 20:42:09 GMT
I received the email too.
I'm only in property loans on FC, and I will not be letting my funds go to SME as I don't consider the interest rates are equal to the default risk. Not sure what I'll do with my funds, maybe its time for it to go to bank accounts as the property loan stream dies off.
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metoo
Member of DD Central
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Post by metoo on Apr 10, 2017 22:19:15 GMT
The experienced property team (learning on the job) may take their experience to other p2p lenders. How could we know which? Do I need to look out for new vehicles arriving at Brankesmere House just down the road from me? Surely they'll set up their own p2p business, or start a new property offering from an existing organisation, but more likely the former?
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DiQ
Member of DD Central
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Post by DiQ on Apr 11, 2017 21:57:46 GMT
So this will just leave unsecured loans on FC?  |
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upland
Member of DD Central
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Post by upland on Apr 12, 2017 7:15:32 GMT
Do I need to look out for new vehicles arriving at Brankesmere House just down the road from me? Surely they'll set up their own p2p business, or start a new property offering from an existing organisation, but more likely the former? Its a shame , it worked OK for me. I suppose that FC must know their business though & some of the borrowers must have taken liberties. I wonder how soon it will become apparent where the business will drift away to , if it does.
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