Brief But Good Updates On Proplend, Growth Street…And Sergii?
Proplend* has given an update on its P2P mortgages to commercial and residential property owners that are leasing out their properties.
One loan was repaid about a month late. Lenders earned an extra 20% interest in the month they were waiting for their money back.
There's another loan that is late, but Proplend sees no issue with the borrower or the property, and is going to allow it to borrow the money again through individual lenders through its website over the next few weeks.
Both mortgage repayments were delayed for the same reason: as the borrowers' Proplend mortgages came to an end it took them a little past the expiry date to get a new mortgage deal.
These things do happen and so considering this has just happened on a couple of mortgages, with one already resolved, it is certainly a long way away from being a cause for concern.
I'm also assured that Proplend will be rolling out auto-invest soon.
Here's a Proplend review.
Lenders now typically have 97% of their money out on loan at a time, so just 3% of funds are currently unlent. This has been the case for the past few months now, and Growth Street* anticipates this will continue for the foreseeable future.
Growth Street had an imbalance last year, where it had more lenders than borrowers. However, it has made a few major changes to correct the situation on a long-term basis:
- Growth Street dramatically increased borrowing. Total loans outstanding were in the region of £6.25m near the end of July last year, but now the figure stands at over £11.5 million. This increase of borrower demand obviously means that more lenders' funds are lent out, and (all other things being equal), they are matched faster and lenders can earn higher interest rates.
- Growth Street also now has standby lenders. This is a sum of money provided by a few lenders, but that is in Growth Street's control. The importance of this is that Growth Street can use the standby lenders to sit behind standard lenders. The standard lenders get matched first while giving Growth Street the confidence to go out and get more borrowers, without worrying there will be too few lenders to match them.
Just to elaborate on that, previously Growth Street used to use standard lenders' cash as standby cash to attract more borrowers, which meant money lent by ordinary lenders like you and I was just sitting around. Now we are not being used in this way.
Just to let you know that Sergii – no, he's not a P2P lending site – has now started at 4thWay. Sergii has been doing freelance investment research work for a prominent equity analyst for some time now. Sergii is extremely thorough, interested, and interesting, and we feel really lucky to have him in our highly skilled team!
*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Growth Street and Proplend, and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.
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