(MTBF935) Commercial Bridging Loan in Lichfield REPAID

1. "In addition to the first-charge, we have a debenture over the company and as such have recourse to monthly rental income generated by the borrower through the storage container units".

2. Afaik we do not see borrower agreement. MT margin believed to be lower than, say, Lendy (ie think more a couple of % than 6%).

3. Have a look at the default page, difficult to predict what's risky or not. Prestbury is the only commercial business in default and is expected to be bought as a going concern to repay the loan; of the land only defaults, seems we're heading for a haircut on LstA, the others are not as far advanced yet.

There's no development risk here and there seems to be a commercial reason for the loan backed up by revenue generating businesses and a lowish ltv property but assessment of risk must be judged by each investor individually.

First come but you'll see there's a bidding limit for 24hrs where MT try to make it last that long.

Thanks, I missed that, but would only take 200 bidders to cover the whole loan at the limit. Not that the limit will trouble my miniscule 'toe in the water' bid to get the hang of things. Would a loan of this size normally take more than 24 hours to fill?

Hard to tell now that MT have got a few defaults and Collateral have been showing incompetence. Some people will be departing while others will have more to grab. Times change.

ed. crossed with elliotn .

archie   Oh all right then.

Hi sapphire and welcome here. 

I'll be investing in this one. There are a few points that make me think that this is perhaps less than straight forward in a default situation, but for 12% I can overlook some of those. If some other 'late' / defaulted loans repay soon, perhaps a bit more. However, one word of caution. I was once tempted to invest in a FC property loan on a trading London hotel. I was encouraged by the fact that it was a trading business, so I 'thought' in the unlikely event of a default, income would cover some / all interest. 

In recovery it has transpired that the security property is in fact leased to a connected third party who actually operate the hotel. We assume that the lease has been written at below market rates, but that the third party continues to service the lease - therefore it is difficult to terminate, and thus almost impossible to liquidate the security. 

P2P will be a bumpy road but it can be both fun and profitable, but also frustrating.

Is this Lichfield in Staffordshire? Not Litchfield in Hampshire.
If it is near to Burntwood then it's Staffordshire not far from me. However, Lichfield is a completely different place to Burntwood and in my opinion, a far more desirable and commercially profitable place to live/locate.