pickles
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Post by pickles on May 7, 2017 10:08:19 GMT
I'm new to MT, and so far it looks pretty good. Account information is clear, the site is responsive, everything seems to work, unlike any of the other P2Ps I've been using.
What's not so clear is the operation of the SM. Is it really fee-free? From what I've seen over the last week there's very little SM activity but when stuff is listed it get snapped up pretty quickly. Can it really be the case that you can close out a position quickly and with no cost? Or have I missed something?
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SteveT
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Post by SteveT on May 7, 2017 10:12:07 GMT
Yes, there are no fees. Lender demand has been outstripping borrower supply for some months, so pretty much anything listed on the SM has been getting snapped up quickly. Much like Saving Stream in the good old days ...
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pickles
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Post by pickles on May 7, 2017 10:34:25 GMT
That sounds amazing. It looks like I should fill my boots. I wonder how long before they change it? I have some cash I may need in six months, it looks reasonable safe to assume I can pull it out if needed (FTAOD I will not starve if it can't be ). Another question: are the loans actually interest-only under the hood, or are they pure bullet with interest pre-funded from the original loan? What I mean is: does the borrower actually pay over the interest each month or is this done from a retention by MT, like the way FC loans work?
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am
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Post by am on May 7, 2017 10:43:45 GMT
That sounds amazing. It looks like I should fill my boots. I wonder how long before they change it? I have some cash I may need in six months, it looks reasonable safe to assume I can pull it out if needed (FTAOD I will not starve if it can't be ). Another question: are the loans actually interest-only under the hood, or are they pure bullet with interest pre-funded from the original loan? What I mean is: does the borrower actually pay over the interest each month or is this done from a retention by MT, like the way FC loans work? There are no guarantees that you will be able to get your money out in 6 months (even if you put in it loans with less that 6 months to run) 1) a particular loan may default or otherwise turn toxic 2) supply may in the future outstrip demand leading to slow sales on the secondary market I believe the source of interest for MT loans is loan-specific. (MT does working capital as well as bridging and project loans.)
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ben
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Post by ben on May 7, 2017 10:46:57 GMT
That sounds amazing. It looks like I should fill my boots. I wonder how long before they change it? I have some cash I may need in six months, it looks reasonable safe to assume I can pull it out if needed (FTAOD I will not starve if it can't be ). Another question: are the loans actually interest-only under the hood, or are they pure bullet with interest pre-funded from the original loan? What I mean is: does the borrower actually pay over the interest each month or is this done from a retention by MT, like the way FC loans work? If you may need money in 6 months why invest in some of the most risky asset class avaliable?. At the moment the secondary market is active but you only need to look at the Lendy board to see the panic some people have now that there secondary market is not as active as it was a few months ago. Out of all of the high paying interest accounts MT is probably my favourite but it is certianly not safe.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 7, 2017 11:43:34 GMT
That sounds amazing. It looks like I should fill my boots. I wonder how long before they change it? I have some cash I may need in six months, it looks reasonable safe to assume I can pull it out if needed (FTAOD I will not starve if it can't be ). Another question: are the loans actually interest-only under the hood, or are they pure bullet with interest pre-funded from the original loan? What I mean is: does the borrower actually pay over the interest each month or is this done from a retention by MT, like the way FC loans work? No, MT have never operated the retained interest model except on maybe one occassion. Its been covered a few times. (NB all posts pre-full authorisation and with MT self funding loans initially) p2pindependentforum.com/post/100469p2pindependentforum.com/post/121498p2pindependentforum.com/post/137037It has also recently been indicated that they on occassion use their own funds to smooth payments if the borrower is delayed or on a different payment schedule to monthly. This may not continue to any great extent with full authorisation as the FCA is against small platforms taking on too much balance sheet risk.
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archie
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Post by archie on May 7, 2017 11:46:08 GMT
While not safe I'd be very surprised if you couldn't get out in 6 months, no guarantees though. No fees.
SM activity is more prominent on days when there is a new loan, lenders may reduce existing holdings to buy into the new one.
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metoo
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Post by metoo on May 7, 2017 13:46:17 GMT
A secondary market without fees is what makes it possible for new lenders to get diversification in a reasonable time frame and therefore be able to invest more on the platform, benefiting from others who are spreading their risk by selling part of their holdings to buy into new offerings. This allows the platform to grow despite a fairly slow pipeline of new loans. Whereas FC charges a small fee, they also allow sellers to charge a premium, so usually the cost is with the buyer. MT keeps it nice and straightforward and everyone benefits.
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ben
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Post by ben on May 7, 2017 14:20:12 GMT
While not safe I'd be very surprised if you couldn't get out in 6 months, no guarantees though. No fees. SM activity is more prominent on days when there is a new loan, lenders may reduce existing holdings to buy into the new one. 6 months ago people were saying same on Lendy. So if you may need the money why bother. Over 6 months for every £1000 your only talking £50 pre tax differnece between a normal bank account and a 12% loan. You probably can exit but why risk it if you have no intention of holding.
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archie
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Post by archie on May 7, 2017 14:30:29 GMT
While not safe I'd be very surprised if you couldn't get out in 6 months, no guarantees though. No fees. SM activity is more prominent on days when there is a new loan, lenders may reduce existing holdings to buy into the new one. 6 months ago people were saying same on Lendy. So if you may need the money why bother. Over 6 months for every £1000 your only talking £50 pre tax difference between a normal bank account and a 12% loan. You probably can exit but why risk it if you have no intention of holding. True but that's more down to the changes Lendy have made and the ever growing defaults list there.
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pickles
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Post by pickles on May 7, 2017 16:48:59 GMT
While not safe I'd be very surprised if you couldn't get out in 6 months, no guarantees though. No fees. SM activity is more prominent on days when there is a new loan, lenders may reduce existing holdings to buy into the new one. 6 months ago people were saying same on Lendy. So if you may need the money why bother. Over 6 months for every £1000 your only talking £50 pre tax difference between a normal bank account and a 12% loan. You probably can exit but why risk it if you have no intention of holding. Well, yes, but that's an argument against investing at all. As I said above, I won't starve if I can't close out my position easily. The fee-free SM as explained by others makes a lot of sense now. Another question: I can't find the stats on defaults, can someone point me in the right direction?
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archie
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Post by archie on May 7, 2017 17:01:45 GMT
There haven't been any defaults.
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justme
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Post by justme on May 7, 2017 17:02:17 GMT
I don't think there was any as yet. The number of loans is far lower than on another platforms and it has not been on for long yet.
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littleoldlady
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Post by littleoldlady on May 7, 2017 17:08:33 GMT
IMO the main reason for the absence of defaults so far is MT's DD. It also the cause of a relatively slow deal flow compared to other platforms that will lend to anybody because after all it's not their money. However no doubt there will be a default one day.
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metoo
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Post by metoo on May 7, 2017 21:52:34 GMT
Another question: I can't find the stats on defaults, can someone point me in the right direction? Defaults haven't happened so far. Here is the statistics page.
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