elliotn
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Post by elliotn on Sept 14, 2018 14:31:49 GMT
I'm trying them again, after poor results first time round. The current promotion gives you a 5% buffer against defaults - limited to the first 1000 to sign up for current investors. (no limit for new investors) Very good offer! I would've gone for it if I didn't already have up to my self-imposed limit for LC. Annoyingly just got a ‘measly’ £200 for 10k!
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Post by df on Sept 14, 2018 19:54:05 GMT
Very good offer! I would've gone for it if I didn't already have up to my self-imposed limit for LC. Annoyingly just got a ‘measly’ £200 for 10k! I've never been paying proper attention to never ending bonus offers (they were releasing them non-stop since more than a year ago), but noted that they tend to become more and more generous. I might be over reacting, but this makes me worried a little when platforms make growth as their priority goal. The loan flow now is not compatible with what it was when I signed up, this move obviously need more more investor's funds, but can potentially turn into FC problem where default rate has gone too far up... Recently I've noticed an increase of A rated loans that look more like C+.
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r00lish67
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Post by r00lish67 on Nov 10, 2018 15:45:50 GMT
Just to give everyone a break from 'the London loan' I was one of the vociferous anti-LC people a couple of years back. No regrets, they really dropped a few balls, and then seemed unable/unwilling to pick them up again. I still came out with a profit due to the generous bonus, but not with a stain from a cockroach-infested pizza or two. However, I did recently take them up on their Autumn offer (5% CB up to £10k). Reasons I did: 1) They now have much higher loan origination. Not quite FC, but there are often hundreds of loans on the SM to diversify into it, rather than a handful as before. 2) FC has worsened considerably IMV, whilst LC has mostly stayed the same. So, LC rates now appear relatively generous and of course self-select is available. 3) I reviewed their total loanbook and was encouraged by the minimal number of defaults they've had of late. Recoveries still a question mark however. 4) 5% cashback. Obvs. I'm now about 2 months in. I am taking an active approach, attempting to pick up early signs of trouble where possible. Have ditched a few loans on the SM and sold quickly, although none of those I've sold have actually been downgraded. I'm intending to put aside a little interest every month to act as some 'self-provision' for bad defaults. It's obviously too early to tell how I will fare, but I consider 5% CB a decent cushion and at least there's some leeway to have an edge on the average return potentially (watch out for the 0.5% SM fee though). They've now just started an identikit 'Winter promotion' of 5% CB for up to £10k investment for new and existing customers. If you're brand brand new then they also offer £50 if you sign up via a friend.
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elliotn
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Post by elliotn on Nov 10, 2018 15:57:13 GMT
I didn’t see the 2016 cohort but looking at some of the defaults the companies weren’t very impressive. I can only speculate that the increased origination (underpinned by Scottish Investment Bank SME funding) and scaling the business has upped the range of offerings. There are profitable co’s in there. And around half include debentures. That said it can time be time heavy to micro-manage and I wonder should I just take FC’s 7% and (current) 90%+ liquidity...especially after my C2F defaults anyway! And then I remember the CB .
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r00lish67
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Post by r00lish67 on Nov 10, 2018 16:16:37 GMT
I didn’t see the 2016 cohort but looking at some of the defaults the companies weren’t very impressive. I can only speculate that the increased origination (underpinned by Scottish Investment Bank SME funding) and scaling the business has upped the range of offerings. There are profitable co’s in there. And around half include debentures. That said it can time be time heavy to micro-manage and I wonder should I just take FC’s 7% and (current) 90%+ liquidity...especially after my C2F defaults anyway! And then I remember the CB . They do also offer an auto-diversified 'invest and forget' product that has a target of 6% p.a. But, that'd be boring.
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p2pmark
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Post by p2pmark on Nov 10, 2018 21:53:15 GMT
They've now just started an identikit 'Winter promotion' of 5% CB for up to £10k investment for new and existing customers. If you're brand brand new then they also offer £50 if you sign up via a friend. Grateful if somebody could send me a referral code and link. Thanks
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Post by carol167 on Nov 11, 2018 11:34:27 GMT
They've now just started an identikit 'Winter promotion' of 5% CB for up to £10k investment for new and existing customers. If you're brand brand new then they also offer £50 if you sign up via a friend. Grateful if somebody could send me a referral code and link. Thanks I've pm'd u.
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rscal
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Post by rscal on Nov 17, 2018 8:38:33 GMT
I didn’t see the 2016 cohort but looking at some of the defaults the companies weren’t very impressive. I can only speculate that the increased origination (underpinned by Scottish Investment Bank SME funding) and scaling the business has upped the range of offerings. There are profitable co’s in there. And around half include debentures. That said it can time be time heavy to micro-manage and I wonder should I just take FC’s 7% and (current) 90%+ liquidity...especially after my C2F defaults anyway! And then I remember the CB . They do also offer an auto-diversified 'invest and forget' product that has a target of 6% p.a. But, that'd be boring. I see that 6% target rate less 1% on withdrawals and then I see the 1% on self-select account interest plus 0.5% on loan selling. I was wondering how the effect of the two charging models would compare? (I'm looking to avail myself of the 5% cashback so that would be an effective 10% if left for the 12 months and then witdrawn - or at least somewhat drawn down - yes?)
Thanx in advance.
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r00lish67
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Post by r00lish67 on Nov 17, 2018 15:20:14 GMT
They do also offer an auto-diversified 'invest and forget' product that has a target of 6% p.a. But, that'd be boring. I see that 6% target rate less 1% on withdrawals and then I see the 1% on self-select account interest plus 0.5% on loan selling. I was wondering how the effect of the two charging models would compare? (I'm looking to avail myself of the 5% cashback so that would be an effective 10% if left for the 12 months and then witdrawn - or at least somewhat drawn down - yes?)
Thanx in advance.
Hi rscal . The impact of the charging models really totally depends on how you're going to be using them i.e. how much you sell on the SM or withdraw from the Growth account. If I were you, I'd very much base your decision on how much time you want to put into it. It took me hours and hours over a few weeks to achieve a diversified loan pool on the manual select, and given that I had to choose from what's available on the SM in a limited timeframe to get the bonus, it's quite difficult to get that level of diversity especially at decent rates. TBH, if you're in any doubt at all about investing a lot of time, then I'd go with auto-select. It apparently has also achieved significantly better than target rate of late, although of course that's no guarantee. Best of luck with it!
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Post by dobbo on Jan 23, 2019 21:54:07 GMT
What rates are people finding achievable? A colleague of mine is claiming 10% and hassle free investing, but I have my doubts. Maybe he's just trying to refer a friend. Or hasn't logged in for a while!
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r00lish67
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Post by r00lish67 on Jan 23, 2019 22:05:44 GMT
What rates are people finding achievable? A colleague of mine is claiming 10% and hassle free investing, but I have my doubts. Maybe he's just trying to refer a friend. Or hasn't logged in for a while! With a 3 month old portfolio (of old and new loans) my average rate is currently 7.72%. I also have a 5% bonus locked in for a further year. I have 230 different loans - obvs some of those will inevitably go bad. It is conceivable that if I experience a low amount of defaults in the next year, I could get 10% all told for the year's effort once all recoveries are dragged in, but we'll see. I'd be very happy with 7-8%. I do put some effort into chopping/changing/monitoring - difficult to say to what effect though - ask me in a year IMV though 10% is not achievable hassle-free. It's a) spending time separating wheat from chaff, continually b) Making full use of bonus offers and c) being downright lucky. If your colleague has just chocked his portfolio full of B/C+ loans to achieve their "10%", then the very best of British to him/her :-)
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mb
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Post by mb on Jan 24, 2019 11:29:25 GMT
What rates are people finding achievable? According to LC my "actual rate of return" is 4.5%. That doesn't include promotions and I have had two of those, so I'm a (fairly) happy bunny. LC say my "estimated return", which is an estimate of future returns, is 8.38%. I don't have much faith in that figure but I can believe your colleague could easily get that estimate up to 10% by investing in riskier loans than me.
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Post by Butch Cassidy on Jan 24, 2019 12:10:10 GMT
What rates are people finding achievable? A colleague of mine is claiming 10% and hassle free investing, but I have my doubts. Maybe he's just trying to refer a friend. Or hasn't logged in for a while! It's definitely possible; I run 2 separate, self select 5 figure accounts (started Sept 2015), one conservative with the other slightly higher risked & my latest "weekly update" shows the following net returns after fees & bad debt followed by estimated net returns; 13.05%/9.5% over 56 loans (dashboard states actual 10.2% ex bonus's) & 15.3%/8.8% (dashboard states actual 9% ex bonus's) over 48 loans.
I actively manage them & try to invest on the PM in new loans for the best rates but will top up via SM on loans that I hold & trust. I only tend to invest in 2 or 3/10 loans that I review, as any signs of weakness or even gut feeling I avoid. I have had several generous bonus offers to soften the blow of any defaults (both accounts have a couple of lates that look to be heading the wrong way but currently comfortably have bad debt< bonus). Loan quality, DD & choice have all improved dramatically over the last couple of years & although rates are marginally lower it would certainly be possible to build a decent portfolio that returns 8%+ in a short period by active use of both PM & SM. I see LC as a good replacement for FC who have become uninvestable IMHO due to their all out drive for volume growth & potentially ruinous incoming bad debts.
Once you have built the portfolio it's relatively hassle free just reinvesting income, minimum £20 parts, once or twice a week but they also have an auto invest function if even that proves too onerous a time commitment but I have no experience of using it. I have had one full recovery but nothing from another couple so the jury is still out on their recovery ability but the best default is always the one which you avoid altogether with good/lucky DD.
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Post by dobbo on Jan 24, 2019 13:04:56 GMT
What rates are people finding achievable? A colleague of mine is claiming 10% and hassle free investing, but I have my doubts. Maybe he's just trying to refer a friend. Or hasn't logged in for a while! It's definitely possible; I run 2 separate, self select 5 figure accounts (started Sept 2015), one conservative with the other slightly higher risked & my latest "weekly update" shows the following net returns after fees & bad debt followed by estimated net returns; 13.05%/9.5% over 56 loans (dashboard states actual 10.2% ex bonus's) & 15.3%/8.8% (dashboard states actual 9% ex bonus's) over 48 loans.
I actively manage them & try to invest on the PM in new loans for the best rates but will top up via SM on loans that I hold & trust. I only tend to invest in 2 or 3/10 loans that I review, as any signs of weakness or even gut feeling I avoid. I have had several generous bonus offers to soften the blow of any defaults (both accounts have a couple of lates that look to be heading the wrong way but currently comfortably have bad debt< bonus). Loan quality, DD & choice have all improved dramatically over the last couple of years & although rates are marginally lower it would certainly be possible to build a decent portfolio that returns 8%+ in a short period by active use of both PM & SM. I see LC as a good replacement for FC who have become uninvestable IMHO due to their all out drive for volume growth & potentially ruinous incoming bad debts.
Once you have built the portfolio it's relatively hassle free just reinvesting income, minimum £20 parts, once or twice a week but they also have an auto invest function if even that proves too onerous a time commitment but I have no experience of using it. I have had one full recovery but nothing from another couple so the jury is still out on their recovery ability but the best default is always the one which you avoid altogether with good/lucky DD.
Thanks, Butch. I might have a closer look at them - I've been getting out of AC and could do with another platform to spread the risk
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Post by Berkeley on Mar 6, 2019 15:27:44 GMT
Like some of you I entered LC some time ago and was hit by exploding Pizza and other detritus. Due to early losses and the fact that about 60% (or more) of new offerings are with NO security I shy away from the A+ loans. I believe the high risk of losses on this platform require a higher return. I also keep investment per loan to a minimum.
According to LC figures on the Dashboard my lifetime return is about 5% future return just over 10%
My portfolio is A-7% B+-38% B-39% C+-15% (Note the B & C+ loans are mostly aged.)
16 Losses A-1% B+-56% B-31% C+-6% (1-2016, 4-2017, 8-2018, 2-2019)
Surprisingly the so called high risk B & C+ loans have not suffered the greatest losses, but then It is difficult to fathom how LC assess the risk levels, without more information being provided by the platform. To date total loss recoveries have been a paltry 1.352% , hence the reduction of investment per loan. This is one reason why I would never consider an ISA with LC. I can offset the losses against tax, which I could not do if the loan returns were not taxable. It is also the reason why LC is very low in my P2P portfolio.
I would be interested to see a similar loss chart from A - C+ if anybody can provide one.
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