First of all, I feel somewhat fortunate in that I managed to pick up 4 of 7 this morning. However, the response of the site was shocking, so much so that I think they need to space out renewals by 10 mins, I was still waiting after 5 minutes. It suggests to me that either their systems are not scalable or investment is not going in to the hardware to cope with demand, whichever way you look at it it's not a good sign for future growth of this in demand asset class. I'd guess that bling will be no more, it creates too much intense demand that's costly to service so why bother when high value property loans can bring in more profit per £ invested in the business. Just my take which is no doubt driven by my frustrating (!!!) experience this morning.... ahhh I feel much better for getting that off my chest
After a few failed attempts I managed to log in at 8:58. However none of the loan pages would load, kept timing out constantly. Pages finally began to load at about 9:13 but needless to say all were long gone by then. :-[
For the amount of interest to be gained, it really isn't worth the hassle of trying to buy renewals (or stress factor judging by the replies above). There will always be some lenders with familiar initials who are successful in achieving multiple loan parts at renewal, just as there are some lenders who appear to be disproportionately successful at securing bling on the SM. Sadly, I am not among them!
The bottom line is that bling is popular with lenders, but a shrinking part of the Collateral loan book - demand exceeds supply.
Collateral don't have the problem. All these bling loans get filled. What incentive is there for Collateral to fix this? Or to deal with bots in the SM? Where do they make the majority of their money now?
However, from an investor's point of view; this morning was a total waste of time!
Like others, I have no desire to invest in any more of their property offerings.
The servers are clearly not capable of handling the kind of traffic we saw today. I have suggested a number of times a way to manage this situation better by making these changes...
- Stagger the loans such that we have ONE loan every 10 or 15 minutes. This should help in a number of ways.
First, each user will then be only trying to buy ONE loan rather than THREE different ones at any one time. For example, if we have (say) 200 users chasing three loans, this would imply 3 windows open trying to connect to the server at the same time from each computer (600 connection attempts). If only one loan was available, we would have only 200 connection attempts and the servers should be more responsive. This is really an extension of a previous change by Collateral (a year ago we would probably have had ALL SEVEN loans going live at 09:00am!!).
Second, by spacing the renewals over a longer period of time it may discourage some from sitting at a computer and chasing every loan (particularly considering the small amounts available). This again should reduce load.
- Reduce the maximum bid limits for smaller loans to £10 when availability is under £500.
This will probably discourage some because of the small amounts on offer, which would again reduce load. A bigger bonus here is that it would 'hammer the bots' which are probably on autopilot to pick up chunks of £25 from each loan. Yes, they will still go away with £10, but there will be a bigger pot available for everyone else. Just consider the updates above from people who tried to grab £25 and failed to get anything. With the lower limit this is much less likely to occur and the loan should be spread wider. I know this suggestion will not be popular with those who (for whatever reason) usually manage to get a £25 chunk from almost every renewal, but it should benefit the majority who rarely manage to pick up much.