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Post by topgun on Aug 28, 2014 13:30:53 GMT
TC have a new auction in order to buyout this FK loan. New bricks for old?
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pikestaff
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Post by pikestaff on Aug 28, 2014 16:07:38 GMT
Target rate 10% and I won't be surprised if the auction finishes well below that.
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oldgrumpy
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Post by oldgrumpy on Aug 28, 2014 17:12:32 GMT
Why on earth would they accept a FK target rate (to us) of 11.5%, pay all the fees, achieve 11.34%, then go through it all again before making their first payment? Would they still come out on top at 10%?
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jhma
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Post by jhma on Aug 28, 2014 18:10:02 GMT
The new loan is for quite a bit more than the old (or rather still fresh) FK one. Over a longer time frame too I recall.
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Post by captainconfident on Aug 28, 2014 18:27:50 GMT
But having drawn down the loan, they must surely have had to pay the FK arrangement fee, about £1500. I wonder who they're getting their financial advice from?
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Post by jackpease on Aug 28, 2014 18:40:21 GMT
Someone on commission!
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Post by captainconfident on Aug 28, 2014 23:33:09 GMT
Hmm, there's an anaemic reply in the TC q&a.
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pikestaff
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Post by pikestaff on Aug 29, 2014 10:53:53 GMT
If they achieve their target rate they will get the FK arrangement fee back in saved interest on the £50k, plus they will have a longer loan (5yrs vs 3). Obviously there will be other fees as well, but I can see the attraction for them.
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oldgrumpy
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Post by oldgrumpy on Aug 29, 2014 11:06:37 GMT
One wonders why they didn't do that in the first place and save all the fees paid to FK. (Or have TC undercover agents been cosying up to FK borrowers who are already paying highish interest? Mmmm - the spy conspiracy burgeons anew..........)
Coffee time...
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shimself
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Post by shimself on Aug 29, 2014 12:03:15 GMT
I keep thinking that I saw another loan being raised by a connected party at around the same time when it was on FK, but I can't find it now, anybody else think the same or has another marble just dropped thud on the floor?
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Post by mrclondon on Aug 29, 2014 18:49:58 GMT
I don't think there is any need for conspiracy theories ( oldgrumpy) or dropped marbles ( shimself) here The director of this borrower (which is his main day job as far as I can tell) also has a string of property companies which provide care properties to this borrower. Two of these property companies have raised funds on TC although the first loan has fallen through due to legal DD uncovering a real nasty in the property that was about to be purchased. A replacement property and loan request is promised shortly. I think it clear that the director sees TC (or more precisely Fr****** & Partners the sponsors) as the route to funding his various companies. Until very recently the borrower owned a property with a first charge plus debenture to a non-P2P organisation. This blocked TC from providing a working capital loan as without a first charge debenture there would be no security. Now that the first charge & debenture has been been released, TC can provide a secured working capital loan and it makes sense to replace what was I suspect was always viewed as temporary funding at FK with the new arrangement at TC.
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Post by captainconfident on Aug 30, 2014 11:41:41 GMT
This is a far clearer explanation than the uncoordinated replies in the TC q&a. Thanks very much mrc.
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Post by topgun on Aug 30, 2014 20:51:35 GMT
Actually the same Owner Sponsor raised a short term loan initially which was drawndown earlier in August.
There has been 2 further loans (with same SPV, but separate co. from loan 1) yet to drawdown.
Now this one ( this time for H******e, which appears to be the tenant?) raising more, incl the funds to pay off the FK loan.
so in effect now 4 loans on same platform.
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pikestaff
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Post by pikestaff on Aug 30, 2014 23:09:07 GMT
...although the first loan has fallen through due to legal DD uncovering a real nasty in the property that was about to be purchased... That was a different borrower (H******n) in a different part of the country. The director has borrowed through R*****e and S********* P****** I*********** (I may not have counted the *s right.)
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Post by topgun on Sept 4, 2014 12:01:26 GMT
Target rate 10% and I won't be surprised if the auction finishes well below that. WAV Rate already down to 9.94% and auction still 3.8 days left to go!
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