North London Commercial Property Loan

NLCP loan is now on the AM.

But be quick as there's a penny discount on each £100unit from one u/wer.

I shadow bidded so can't benefit.

There's tons (pardon the pun Ton ⓉⓞⓃ) units available at 1p discount. I won't be in any rush to add now till I fully re-read the paperwork as I sat out the live loan & have forgotten what it was about (sign of getting on)

Indeed - and note, chris, that the new LTV is not accurately reflected in all places (e.g., on the Investments page is still says 70.84%)

The security for this loan makes me nervous.  The bulk of the 'equity' offered is from a second charge on the borrower's very highly valued residence.  The first charge is for 64% of the valuation.  I'm in another AC loan that's overdue, secured by an expensive residence.  Because that property needed to be sold in order to repay the loan, and apparently wasn't generating much interest from potential buyers, the offering price has been reduced significantly -- by about 20%, IIRC.  In that case, thankfully, the AC security is a first charge, so if the property sells at the lower price it will be the borrower who takes the pain rather than AC lenders.  In the NLCP situation, if it were necessary to enforce the security, and a similar reduction in price were needed in order to attract a buyer in a reasonable time, the LTV of the first charge would jump from 64% to 80% -- and not leave a lot of scope for recovery for AC lenders as the second charge holders.

That's the point to be honest, the loan is now £840k and the comm. property gives even less coverage so more there's now reliance on the 2nd charge, putting up the ltv. (2nd charges being a little more risky than 1st's)

I had forgotten about that change.  I've just been back to the loan pages to see whether the interest rate change was noted there.  It is, but I also see that the same update that said the rate had changed also said that the house valuation had come in at £3.7M, which was below the initial £3.9M estimate.  Yet the £3.9M value still is shown on the Security tab, which means the security isn't as good as stated, and the real LTV is higher than that which is shown.  I think andrewholgate needs to assign someone from AC to the job of updating the website pages for this loan so that investors can't claim they were misled by them.

<wipes boots, puts them away>

Should be sorted now.