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Post by thickmick on Aug 6, 2017 17:20:15 GMT
Hi I have been with the Saving Stream/Lendy platform for some time but withdrew my funds when it was still SS. I've kept my account open but as life has been the usual hectic pace I have not managed to keep abreast of what has been going on since about December 2016 when I withdrew my funds. (Funds were withdrawn without any problem and were used to purchase a home) I have again managed to gather up a reasonable amount and am about to start investing again in some of the online platforms. I've tried to read through some of this forum regarding Lendy but to be honest it is taking hours to troll through countless threads without really finding anything of use. I have read some threads which show people having problems getting the money due to newer/further AML checks but I don't have a problem with this. I understand that when dealing with peoples cash checks need to be made and as a financial business they need to comply with whatever regulations are in place. I know there are a lot of 'friendly, helpful' contributers on here and maybe some of them could assist by answering a few questions I have before getting back into investing. My questions are as follows: Was there any problem which caused the name change or was it just for business/cosmetic reasons? When I withdrew my funds as far as I was aware at the time no investors had suffered any loss, is this still the case or has there been defaults and losses for investors? When I withdrew my funds around Dec 2016 I was able to put close to £20,000 on the SM and had all my loans/part loans bought within 24 hours. Is it still relatively quick to get money released by this way as there seems to be a lot more for sale on the SM than in the 'old days' :-}? If I invest in a loan which is deemed to be in default does it automatically mean that my funds will be unavalible to me until the matter is resolved either by the borrower paying off the loan or it being sold by the platform? If you feel you can give me any answers I'd appreciate, however if you have nothing useful to add.... thankyou for adding nothing.  Mike |
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archie
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Post by archie on Aug 6, 2017 17:28:06 GMT
My questions are as follows: 1) Was there any problem which caused the name change or was it just for business/cosmetic reasons? 2) When I withdrew my funds as far as I was aware at the time no investors had suffered any loss, is this still the case or has there been defaults and losses for investors? 3) When I withdrew my funds around Dec 2016 I was able to put close to £20,000 on the SM and had all my loans/part loans bought within 24 hours. Is it still relatively quick to get money released by this way as there seems to be a lot more for sale on the SM than in the 'old days' :-}? 4) If I invest in a loan which is deemed to be in default does it automatically mean that my funds will be unavalible to me until the matter is resolved either by the borrower paying off the loan or it being sold by the platform? 1) Widely believed the FCA didn't like the word Saving in the title but we don't know for sure. 2) No losses yet. 3) Queues only move significantly after interest run or when a repayment occurs. Obviously quicker if there's none of that loan on sale already. 4) Don't know.
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mary
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Post by mary on Aug 6, 2017 17:34:50 GMT
My questions are as follows: Was there any problem which caused the name change or was it just for business/cosmetic reasons? Unclear, but possibly after feedback from the FCA.When I withdrew my funds as far as I was aware at the time no investors had suffered any loss, is this still the case or has there been defaults and losses for investors? Defaults YES, capital losses NO (deficiency covered by PF), but some interest accruing has not been paid on defaults.When I withdrew my funds around Dec 2016 I was able to put close to £20,000 on the SM and had all my loans/part loans bought within 24 hours. Is it still relatively quick to get money released by this way as there seems to be a lot more for sale on the SM than in the 'old days' :-}? Depends on the loan. Post the general election masses was dumped on the SM which peaked at £8m, and is now slowly coming down, just like last year it suddenly jump to £4m after Brexit vote.
If I invest in a loan which is deemed to be in default does it automatically mean that my funds will be unavalible to me until the matter is resolved either by the borrower paying off the loan or it being sold by the platform? On default at -180 days SM sales are suspended and your stuck until recovery if you are invested.
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warn
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Post by warn on Aug 6, 2017 17:39:11 GMT
4) Once a loan is deemed to be in default (i.e. 180+ days overdue), its listing is moved from the "Live Loans" tab to "Default Loans", and you can no longer invest in it. So, if you were in it already, you can't sell it because nobody can buy it, and you will need to wait as you suggest.
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Post by GSV3MIaC on Aug 6, 2017 17:45:27 GMT
The other thing which changed is when loans go into negative time remaining (status turns to IA .. then at -180 days to DEF) you no longer get PAID the interest on the parts, it accrues (along with a notional bonus) which only gets paid when the loan finally repays the capital+interest (or if the borrowers pay enough interest into Ly's account). Previously Ly was covering interest on negative day loans, and we suspect the FCA didn't like that either. There is at least one loan (actually IIRC a pair) where the interest is pending chasing the borrower or surveyor, sicne the asset did not sell for enough to cover the debt (the PF covered the capital shortfall).
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izigor
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Post by izigor on Aug 6, 2017 20:30:59 GMT
You now have the possibility of getting less than 12% interest. So best to keep an eye on that, especially on pre-funding. However, on the other hand you can get more than 12% too. For example on DFL001, you get an extra 0.5% interest per month, so that's equivalent to 18% per annum.
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Post by thickmick on Aug 6, 2017 20:31:34 GMT
Hi Guys
Thanks for the replies. Sounds as if everything is still working mostly okay as long as you use some common sense and do your own DD, and spread the risk both over differnt loans and maybe also over different platforms.
Mike
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pom
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Post by pom on Aug 6, 2017 20:46:43 GMT
You now have the possibility of getting less than 12% interest. So best to keep an eye on that, especially on pre-funding. However, on the other hand you can get more than 12% too. For example on DFL001, you get an extra 0.5% interest per month, so that's equivalent to 18% per annum. No you don't, the bonus is a one off payment at the end, not per month (assuming they receive enough to cover it of course...
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izigor
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Post by izigor on Aug 6, 2017 23:37:14 GMT
No you don't, the bonus is a one off payment at the end, not per month (assuming they receive enough to cover it of course... The payment is at the end, but it is 0.5% per month, right? so 18% per annum (12% + 0.5%x12). That's how I've understood it, but please let me know if that's definitely not the case and I'll triple check it to be sure.
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Liz
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Post by Liz on Aug 7, 2017 0:18:06 GMT
No you don't, the bonus is a one off payment at the end, not per month (assuming they receive enough to cover it of course... The payment is at the end, but it is 0.5% per month, right? so 18% per annum (12% + 0.5%x12). That's how I've understood it, but please let me know if that's definitely not the case and I'll triple check it to be sure. I thought that was the case, although I'm still a bit confused  And if they can pay 18%pa, I wonder how much the borrower is paying in "default" interest to Lendy.
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izigor
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Post by izigor on Aug 7, 2017 5:25:09 GMT
The payment is at the end, but it is 0.5% per month, right? so 18% per annum (12% + 0.5%x12). That's how I've understood it, but please let me know if that's definitely not the case and I'll triple check it to be sure. I thought that was the case, although I'm still a bit confused And if they can pay 18%pa, I wonder how much the borrower is paying in "default" interest to Lendy. Well the borrower don't pay interest while in default. They either make settlements (of capital + interest) or Lendy repossesses the security and sell them to recover the monies. It is from this sale that all the capital + interest (original + 18%) + fees are recovered.
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archie
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Post by archie on Aug 7, 2017 6:35:10 GMT
Another change. If you put something on the sm and cancel the sale before the end of the month you won't recover the lost interest. This was the intention before but a software fault meant it didn't work properly.
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pom
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Post by pom on Aug 7, 2017 11:35:58 GMT
No you don't, the bonus is a one off payment at the end, not per month (assuming they receive enough to cover it of course... The payment is at the end, but it is 0.5% per month, right? so 18% per annum (12% + 0.5%x12). That's how I've understood it, but please let me know if that's definitely not the case and I'll triple check it to be sure. Well yes and no, because it only pays out if you hold it to the bitter end and don't try and sell, and if it takes too long there may well be nothing to pay interest or bonuses anyway. So even though it potentially works out at 18% pa - or potentially even more if you buy later during the IA phase before default - it probably isn't wise to think of it like that. It's a bonus that may or may not pay out.
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mosaic
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Post by mosaic on Aug 7, 2017 11:43:19 GMT
No you don't, the bonus is a one off payment at the end, not per month (assuming they receive enough to cover it of course... The payment is at the end, but it is 0.5% per month, right? so 18% per annum (12% + 0.5%x12). That's how I've understood it, but please let me know if that's definitely not the case and I'll triple check it to be sure. I think you need to triple check. According to your logic the loans with a 2.5% bonus accrual will pay out at 42% per annum (12% + 2.5%x12)
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Post by lendinglawyer on Aug 8, 2017 8:58:26 GMT
IMO the most significant recent change with Lendy is that most of the loans pumped out are either (a) <12% PBLs or (b) monster DFLs with seemingly insatiable funding needs. Neither is a problem in and of itself, but (a) is only OK if the rate is truly representative of the risk (most of them, I for one am not sure it is) and the problem with (b) is that lots of lenders hit their max exposure to a particular DFL in the first few tranches and so by the later stages they are harder to fill. The CB and recent repayments of a few large loans have (along with the reduced pipeline of higher rate PBLs with sensible risk profiles across all platforms frankly) have helped as evidenced by the falling SM queues on longer-dated higher-rate loans, and while I have come back in recently I remain wary of what will happen post-Summer...
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And if they can pay 18%pa, I wonder how much the borrower is paying in "default" interest to Lendy. 
