macq
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Post by macq on May 10, 2017 11:11:24 GMT
understand that 7% does not do it for you but still think there is a market for the Ac & Lw accounts paying 4% to people looking for so called less risk accounts ,but that is all they are a promise of less risk so may be you have a point.As i said i am in 14% loans but your point of the reward being worth the risk at what rate in the future would you stop investing? As for new lenders offering better rates to drive new business means happy days, it could also mean companies taking on loans no one else wanted just so they have product and the higher rate offered may not even reflect that extra risk.
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macq
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Post by macq on May 10, 2017 11:32:45 GMT
Going back to the original point the risk factor may be coming into effect with Li as they are probably finding big investors being more happy to invest in P2P,so they no longer want the expense of lots of little accounts possibly.
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rxdav
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Post by rxdav on May 10, 2017 12:05:11 GMT
Macq: I take your point about new entrants potentially taking on loans that others may not. However, I would counter with two points - firstly, this is where and why the ability and willingness to take time and effort with DD is crucial so as to mitigate risk (and also why I suggest P2P is not for the amateur). Second, we've just seen Lendy launch some of the most 'iffy' loans I've seen for some time (borrower in receivership) - so maybe it's not just the new entrants that are having to fight hard for product? (Incidentally, I took a small slice of PBL178 - but won't be holding beyond the six months that interest has been deducted at source).
As for the point at which I would cease lending - that's a complex question. Essentially it would be when I considered the risk/reward ratio's fell below my comfort threshold. But that decision would certainly include vectoring in issues such as geopolitics, the current and foreseeable micro and macro-economic climate etc. - not solely the specific offerings of P2P platforms at any given time.
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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 10, 2017 16:45:15 GMT
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dandy
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Post by dandy on May 11, 2017 8:21:54 GMT
Also not a LI investor, but I can't see much alternative for platforms allowing selection of individual loans in the medium term. It will be simply too expensive to provide the level of financial disclosure and analysis on a per loan basis required to provide a defence against retail investors suing for mis-selling. Retail investors will have to be restricted to pooled funds in the long term. Yes this will hurt those of us that don't fit into the HNW/Professional Investor categories, but there is more than enough evidence on the forum of retail investors investing in loans without understanding for example what a residual value valuation is and what it isn't. Interesting view but what makes you believe this to be the case? As has been pointed out the restrictions are based on regulations and all it takes is a £20 investment on Seedrs or such platform to qualify. You could probably invest £20 in a friend's idea and qualify. I think this is really to help HIGHLIGHT that capital is at risk and provide some extra tick boxes. Like, are you REALLY REALLY sure you know what you are doing.
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Post by Financial Thing on May 11, 2017 20:31:28 GMT
I believe LI is complying with the FCA with this new eligibility requirement. When I got the notification, I selected I was a high net worth investor, took a simple quiz then my account was just as normal. Not sure why people are exiting because of this?
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elliotn
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Post by elliotn on May 12, 2017 0:33:29 GMT
littleoldlady. If you are happy with 7% (with 75% LTV) then good luck to you - you are clearly the kind of lender that LI are now actively seeking. However, I'll stick with the 12 to 16% (mainly commercial property) loans available on MT, FS, Abl, L and others. I accept they may well be higher risk (caveat emptor) but I don't consider they are double the risk (perhaps with the notable exception of the recent L 'borrower in receivership' offerings!?). If you really want to minimise your exposure you could always try your friendly local High Street Bank - they will be delighted to offer you a pittance for near zero risk! It's good that there are different investors with different risk:reward profiles or we would all be after the same thing. But there is no need to be rude patronising. My question was genuine - I though that you might know of a platform paying more that 7% on residential. The difference between 7% low risk and 12% higher risk is not so great. It only takes 10% of loans at 12% to suffer an average 50% loss and the net yield is 7%. You could try lanlordinvest, they have a mix of rates but are trying to position themselves in the btl market. And an Ifisa.
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bigfoot12
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Post by bigfoot12 on May 12, 2017 6:54:23 GMT
I believe LI is complying with the FCA with this new eligibility requirement. When I got the notification, I selected I was a high net worth investor, took a simple quiz then my account was just as normal. Not sure why people are exiting because of this? ...because not everyone has an income over £100,000 or £250,000 in liquid assets!
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n
Member of DD Central
Yet another Nick
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Post by n on May 12, 2017 8:15:39 GMT
I believe LI is complying with the FCA with this new eligibility requirement. When I got the notification, I selected I was a high net worth investor, took a simple quiz then my account was just as normal. Not sure why people are exiting because of this? ...because not everyone has an income over £100,000 or £250,000 in liquid assets! I also qualified by virtue of an inheritance, but my initial reaction to the notification was that I was being poked in the eye with a sharp stick.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 12, 2017 8:22:41 GMT
I believe LI is complying with the FCA with this new eligibility requirement. When I got the notification, I selected I was a high net worth investor, took a simple quiz then my account was just as normal. Not sure why people are exiting because of this? ...because not everyone has an income over £100,000 or £250,000 in liquid assets! True, but everybody has, or could easily acquire for £20, "sophisticated investor" status as shown above.
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archie
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Post by archie on May 12, 2017 8:34:29 GMT
Has anyone been asked to prove their status?
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 12, 2017 8:43:52 GMT
Has anyone been asked to prove their status? The term "self-certification" would imply not.
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archie
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Post by archie on May 12, 2017 8:51:40 GMT
Has anyone been asked to prove their status? The term "self-certification" would imply not. Exactly 
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Post by stuartassetzcapital on May 14, 2017 12:19:15 GMT
Apologies for crossing boards but given the subject matter that's fine as a one off I am sure. Well for anyone seeking bridging and development loans there's always ourselves of course. We have worked very hard to remain both true to P2P and also 36(H) compliant from an FCA perspective to permit everyone to partake, not just a select few. Every platform has to follow its own path and that includes how it funds its lending and there may well be a few more divergences of platforms away from P2P over coming months.
For our part we remain fully committed to letting retail investors continue to benefit from this marketplace and would welcome all investors seeking to continue funding these types of loans.
Thread invasion over !
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Post by brightspark on May 14, 2017 20:05:14 GMT
Nice to know that someone loves us!
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