SteveT
Member of DD Central
Posts: 6,875 
Likes: 7,924
|
Post by SteveT on Aug 21, 2017 10:12:34 GMT
Nope, just the lenders who are holding the parts in it. So does that mean that lenders who don't get rid of loans before 18 September will be "stuck" with them; unless of course a portion of the loan is sold when one selects to sell a fixed value of loans? (Hope that makes sense) That's my understanding. You won't be able to sell a specific loan part, only to tell Autosell to get rid of some proportion of your overall loan book (with parts selected "at random")
|
|
|
|
Post by spiker on Aug 21, 2017 10:24:03 GMT
I don't like the decision as I no longer get my 15%+ from flipping.
But at the end of the day, its a good move for FC (It will lower their admin & IT costs)
I'll wait until the IFA opens, and then invest a limited amount but the party is all but over....
I foresee a large stock market correction in the near future, and I'll be well positioned to take advantage of that.
|
|
ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
|
Post by ashtondav on Aug 21, 2017 10:26:29 GMT
Great news. I can now cheaply and quickly diversify my personal loan portfolio into corporate debt. Have started transferring from Zopa today and will continue as the repayments roll in.
|
|
|
|
Post by takeshi on Aug 21, 2017 10:27:53 GMT
When they make major changes removing your options and say that it is 'fairer', then you know it is time for a managed withdrawal. As the old saying goes, "Don't p*ss on me and tell me it's raining".
|
|
|
|
Post by jackpease on Aug 21, 2017 10:28:28 GMT
About six months ago I started to wind down a considerable investment in FC as i had tried various investment strategies (based on advice on this board) - there's a considerable lag (I reckon over 9 months) before any strategy is tested by defaults to see whether you do better than autobid. For each default, I always looked at whether there were any warning signs and I rarely saw any patterns to improve selection. The time and effort in marginally beating autobid was just not worth it.
I think the previous advice to 'avoid autobid at all costs' is no longer valid so this may mean i stop winding my account down and learn to live with autobid - I also think that the risk of newbies losing lots of money (presumably making money for the experts) will also mean that future 'mis-selling' shocks can be avoided.
Having never used autobid before, can i tell it to avoid "secured" property loans?
jack P
|
|
|
|
Post by bracknellboy on Aug 21, 2017 10:36:03 GMT
having to read between the tea leaves......has this come out as an email from FC ? I don't seem to have received.
|
|
|
|
Post by GSV3MIaC on Aug 21, 2017 10:37:17 GMT
The advice is (arguably) not valid AFTER 18TH SEPTEMBER .. until then it is still wise to avoid autobodge. Even thereafter you'll be getting a fine selection of skimmed milk (i.e. the loans that the whole loan buyers with their £160m etc didn't want), but you may well achieve an acceptable rate, yep.
And no, you can't tell autobid to avoid anything in particular (although if you currently tell it to avoid A+,A,B that should keep you out of property .. I don't think there are any C rated property loans (there are many which SHOULD be, but none which are, afaik). Until 18th September your chances of landing many D/Es are slim though.
I guess it's just a matter of time before all loan details get vanished .. why do you need company names, amounts borrowed, durations, financials, and what they need it for .. you can't do anything with it anyway.
Well that's all three of the P2P big fish which have morphed into amphibians pseudo-banks, and left the pool. 8<.
|
|
|
|
Post by GSV3MIaC on Aug 21, 2017 10:38:12 GMT
having to read between the tea leaves......has this come out as an email from FC ? I don't seem to have received. No it's a pop-up when you go to logon. A popup and a link-trail if you want the whole story. www.fundingcircle.com/uk/lendingupdate/
|
|
|
|
Post by takeshi on Aug 21, 2017 10:40:36 GMT
It's also an email
|
|
|
|
Post by mrclondon on Aug 21, 2017 10:42:50 GMT
I'm another one that these changes will encourage to re-engage with FC (particularly once the IFISA is launched). The scrapping of SM premiums to clip the wings of the bots/flippers skimming margin from normal lenders is long overdue - no normal lender can achieve the platform average if the bots/flippers hoover up all availability in certain categories of loans.
Over the years I've posted several times that I believe ultimately the FCA will restrict retail lenders to black-box platforms, and selection of individual loans will be restricted to (self-certified) sophisticated / high net worth investors only. For a high volume platform such as FC it is simply impossible to provide the level of disclosure that allows investors to make an informed decision. Even with the low volume platforms, we see examples of zero disclosure of important info (MT failed to disclose there were in effect prior charges on a secured loan), poor disclosure (COL implying the borrower had 2 principals one very experienced when in fact only 1 director with minimal experience). And then there are the lenders - even some sophisticated forumites believe the failure to achieve full capital recovery AND accrued interest on a 100% LTV loan wrt distressed sale value is evidence of malpractise. The FCA clearly needs to do more to protect lenders from investing in what they perhaps don't fully understand, and from what the platforms are hiding from lenders.
The more detailed due dilligence I do on loans on the like of COL/L/MT/FS, the more I have begun to realise the borrowers on these platforms are either a hugely complicated web of companies, some hidden offshore, loosely linked by their principals (think Mr SD and his large group of associates), or there is enough evidence out there to label them as "shady characters" or "hopelessly out of their depth". Unless the security is rock solid, such borrowers are perhaps best avoided.
Against this background the use of a black box account (undistorted by bots/flippers) investing in straight forward UK SME unsecured debt for part of my p2p portfolio feels a sensible part of a diversification strategy.
|
|
|
|
Post by maddriver on Aug 21, 2017 10:43:17 GMT
Hi All,
I cant seem to work out how this new system is going to manage the portfolio as it stands today, I.E. do any of you know if I'll be able to leave my current loan parts run out there term without the new Auto bid system re-investing my funds as they become available.
Ultimately I am going to move all my funds to another P2P platform but would like my current loan parts to run there course.
Thanks.
|
|
|
|
Post by valerieb on Aug 21, 2017 10:44:13 GMT
having to read between the tea leaves......has this come out as an email from FC ? I don't seem to have received. Found mine in Spam - no comment!
|
|
|
|
Post by GSV3MIaC on Aug 21, 2017 10:45:20 GMT
Hi All,
I cant seem to work out how this new system is going to manage the portfolio as it stands today, I.E. do any of you know if I'll be able to leave my current loan parts run out there term without the new Auto bid system re-investing my funds as they become available.
Ultimately I am going to move all my funds to another P2P platform but would like my current loan parts to run there course.
Thanks. Yes, it is not going to affect your holdings in any way, until/unless you try to sell, or make new investments.
|
|
|
|
Post by maddriver on Aug 21, 2017 10:47:46 GMT
Hi All,
I cant seem to work out how this new system is going to manage the portfolio as it stands today, I.E. do any of you know if I'll be able to leave my current loan parts run out there term without the new Auto bid system re-investing my funds as they become available.
Ultimately I am going to move all my funds to another P2P platform but would like my current loan parts to run there course.
Thanks. Yes, it is not going to affect your holdings in any way, until/unless you try to sell, or make new investments. Thank you for the clarification GSV
OK so my current investments will continue as planned but what about when the payments when there made? I don't want this Auto-bot to re-invest my funds before I have the opportunity to withdraw them.
|
|
|
|
Post by GSV3MIaC on Aug 21, 2017 10:53:21 GMT
I guess if you don't turn autobid on, and/or don't agree to all the new T&Cs, then money will just pile up in your holding account waiting for you withdraw it. Well that's how it SHOULD work, but you might want to check with FC in case they know.
|
|
