Investment levels in Lendy

Reduced by 60% in March and at the time could have exited altogether with little delay. I'm withdrawing the interest from the 40% I hung onto. I'll probably reduce further given the opportunity.

Reducing.  Only hold 12% loans.  Setting a reducing target as loans approach maturity, but holding where it would take more than 7 days to sell.  Hoping the SM goes back to famine.  Would probably start adding more if there were new 12% loans but doesn't seem likely.

Edit:  Reason - ISTM risk/reward better elsewhere.

Sold out primarily because you don't earn interest for loans on sale.  The same reason I don't invest in property loans on Col.  I'm a small investor so can achieve an adequate level of diversification at sites that do pay interest whilst on sale.  The small investor means that bling on Col, FS, and Unbolted form a significant proportion of my P2P pot, unlike BHs who need big property loans and are therefore driven to Lendy and Col.

I'd half agree. It's patently obvious why people are reducing,  but it would be riveting to hear from those who are increasing (six in the poll above as I post this)

I'm happy with the product offered by L but looking to exit the platform.

I've got two loans left near the front of the sales queue which I'm happy to lose a month's interest to get the capital back and a couple more that (according to updates) should repay shortly. Then I'm out apart from one that is going to be a slog which I'm annoyed with myself that I listened to the investor updates instead of my gut and didn't get out when I could earlier in the year.

I had to readdress my motives for investing in bridging loans after the SM started to back up. If I was dubious about holding loans to term then it probably wasn't the right product for me.

I have no problem with using L in the future but for me (IMHO only) the economic cycle is turning over and it's not an area I want to have exposure to. I'm quite happy to be fully invested in other areas and happy for others who think that I'm dead wrong to continue to make a good return, it's just not for me at this point.

My position has little to do with changes over recent months - in fact I have been on a long term reduction plan since the start of the year.

I have always withdrawn all my interest in full every month from the very start which was over three years ago for me so I have got that big 12% profit safely tucked away and nothing has changed in that respect in that it will continue to be a full withdrawal of Interest every month.

As regards my capital investment here - well it is now just slightly less than half of what it was in January. I have consistently had around £10 to 15K of loan parts up for sale for the last three or four months and sale progress has been steady but slow - but yesterday things moved on massively and I believe that after the upcoming interest run I will be exactly where I want to be on the platform which is with only a very high class loan portfolio all earning me 12% interest with nothing for sale because everything I will then be holding will be super high class and could in theory liquidize my entire portfolio in one day.

Why am I reducing my exposure on this platform you ask. Well there are several reasons but one is a very basic reason and that is that nothing good lasts forever and walk away from the table when you are ahead.

Another reason is that this platform is not as new as certain other ones and therefore has an older loan book and the defaults are piling up and losses are inevitable down the line and why should I be around to suffer them when I was one of the people who invested money against boats without any track record in order to launch this business off the ground and let all the thousands on here now profit from it.

A bigger reason is that there are some New Kids on the Block which are less far down the failure curve and which have dynamic energetic management styles and better communication and investor engagement policies than this platform. Not only that but these other platforms offer more than 12% interest so it is a double bonus in that you get better communication and information combined with higher interest and a lower risk because the platforms have not yet built up a book of defaulted loans.

In summary next month I will be at about one third of what I had invested in LY at the start of the year. However that 1/3 will be an extremely robust collection of loan parts and I would be very unwilling to part with them because they look as Solid As A Rock to me for at least another two possibly even 3 months. I have to say it will be a great shame when I do finally leave this platform which I expect to happen around the end of the year because it is far and away the most exciting platform to use and it really adds to your day with all the action that goes on and the receipt of a loan part sold email still gives me a buzz just like it did back in the early days.

fp 's earlier post just about covers my reasons for reducing.  I'm down to about 2/3rds of my investment level 6 months ago, and am still withdrawing money.

As reasons, I would highlight:
 - increasing reliance on development loans, making diversification difficult
 - "Lack of control over current loan book" (quoting fp) - as evidenced by a default rate of around 13% by loan value (and a rather higher percentage by numbers of loans - which is a better proxy for small investors like myself)

If Lendy were able to resolve some of the larger defaults without loss (in particular, I'm thinking the Somerset loans, the Gloucestershire Convent series, and the leatherhead new-build fiasco) that might go some way to stabilizing my plumetting confidence. 

At the moment I don't expect to completely withdraw from Lendy (although that may yet happen), but I think it unlikely in the near future it will return even to current levels.