|
Post by justuslee on Jul 2, 2018 15:54:39 GMT
People might view an "A1 profiled homeowner" as being the most creditworthy type of homeowner available. But, if that were true, they wouldn't need to pay 28%. Whose definition of "A1" are you using (other than your own which tells me nothing) ? If you get chance to look at the JustUs risk profile we explain that an A1 risk grade is a homeowner with an Equifax credit score of 500 + .. I.e they’ll have a credit history showing excellent personal financial management and payment history.
|
|
|
Post by justuslee on Jul 2, 2018 15:59:41 GMT
Something I've wondered for a few years since I first heard Amigo advertise on the Radio, is why does the guarantor agree to this?
I've often wondered this myself
>40% interest rate on a secured loan? Why doesn't the guarantor borrow the money at single figures and then pass it on?
As detailed in a previous post, the higher risk borrower is borrowing at 28% - the guarantor is not the borrower but there as a backstop. The borrower benefits from the support of a Peer/Family/Friend to access fair cost credit as opposed to the 100’s and 1000’s APR currently promoted at scale. In turn they can aide the repairing of a borrowers low credit score/file.
|
|
cb25
Posts: 3,522
Likes: 2,666
|
Post by cb25 on Jul 2, 2018 16:15:52 GMT
Something I've wondered for a few years since I first heard Amigo advertise on the Radio, is why does the guarantor agree to this?
I've often wondered this myself
>40% interest rate on a secured loan? Why doesn't the guarantor borrow the money at single figures and then pass it on?
Because they don't trust their 'amigo' that much ?
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Jul 2, 2018 16:23:08 GMT
Good question bigfoot12 - A well conducted guarantor loan improves the borrowers credit history, and as you would expect from these types of borrowers, many have experienced a few credit blips in the past. So in many instances this can be deemed a credit history repair loan. We settle expensive credit directly and pay any proceeds directly to the Personal Guarantor so they are completely aware of the financial contractual relationship between all parties. But the cost of £3,000 to £3,5000 extra interest on a £5,000 loan seems a high price to pay for a possible credit history repair.
|
|
|
Post by justuslee on Jul 2, 2018 17:44:29 GMT
Good question bigfoot12 - A well conducted guarantor loan improves the borrowers credit history, and as you would expect from these types of borrowers, many have experienced a few credit blips in the past. So in many instances this can be deemed a credit history repair loan. We settle expensive credit directly and pay any proceeds directly to the Personal Guarantor so they are completely aware of the financial contractual relationship between all parties. But the cost of £3,000 to £3,5000 extra interest on a £5,000 loan seems a high price to pay for a possible credit history repair. The long term costs of a poor credit history can run into the £10’000’s and £100’000’s - the average premium for a non-standard mortgage is approximately 3% p.a . Take a £200K average mortgage over 5 years fixed and the numbers really do make sense. In the UK we’re still 5 years behind the USA in valuing our personal credit score. We’re catching up though.
|
|
|
Post by justuslee on Jul 3, 2018 8:42:59 GMT
I've often wondered this myself
>40% interest rate on a secured loan? Why doesn't the guarantor borrow the money at single figures and then pass it on?
Because they don't trust their 'amigo' that much ? cb25 Your'e actually not far wrong, in many instances it's actually the parents who prefer a formal arrangement as the kids/relatives in many instances feel less obliged to repay the bank of mum and dad in a timely manner.
|
|
huxs
Member of DD Central
Posts: 300
Likes: 218
|
Post by huxs on Jul 3, 2018 9:31:37 GMT
Because they don't trust their 'amigo' that much ? cb25 Your'e actually not far wrong, in many instances it's actually the parents who prefer a formal arrangement as the kids/relatives in many instances feel less obliged to repay the bank of mum and dad in a timely manner. I have been using Justus for a few years (when you where still eMoneyUnion) and really like the Guarantee loans I just wish there was more.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Jul 5, 2018 18:02:26 GMT
Ok justuslee, my interest is piqued but some of the comments above suggest a scarcity of these loan types. What is the loan flow for these loans in the pipeline, how much could I expect to be able to invest and in what timescale? What cash drag should I expect and default rates? How are defaults handled? Thank you in anticipation.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Jul 12, 2018 16:00:35 GMT
Ok justuslee, my interest is piqued but some of the comments above suggest a scarcity of these loan types. What is the loan flow for these loans in the pipeline, how much could I expect to be able to invest and in what timescale? What cash drag should I expect and default rates? How are defaults handled? Thank you in anticipation. Or not.
|
|
|
Post by justuslee on Jul 13, 2018 9:17:52 GMT
Sorry Ukmikk we don't receive any notification when comments are made and we've been mad busy completing the £540K bridging loan and on-boarding lot's of new lenders. I suggest you use our JustUs.co live chat for anything urgent, it's operational during working hours. When a borrower is late, we make contact with them first and if they can't/won't pay the guarantor pays. We have had a couple of instances where we have had to take the guarantor to court for payment, then they have paid in full. Of the 100 + loans to date no lender has lost any capital or interest. We complete about one Guarantor Loan per week, but this is planned to increase to at least 1 a day over the coming months. So on these loans alone, you would probably only be able to lend currently £500 per month, but on our property loans, some lenders are able to deploy £100,000 + per month. Cash drag is prevented by JustUs paying 1.2% p.a. on un-lent cash. We have received HMRC and FCA clearance to pay this on ISA and Non-ISA deposits. You can see all our live statistics and and risk profiles on the website.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Jul 15, 2018 11:12:19 GMT
Sorry Ukmikk we don't receive any notification when comments are made and we've been mad busy completing the £540K bridging loan and on-boarding lot's of new lenders. I suggest you use our JustUs.co live chat for anything urgent, it's operational during working hours. When a borrower is late, we make contact with them first and if they can't/won't pay the guarantor pays. We have had a couple of instances where we have had to take the guarantor to court for payment, then they have paid in full. Of the 100 + loans to date no lender has lost any capital or interest. We complete about one Guarantor Loan per week, but this is planned to increase to at least 1 a day over the coming months. So on these loans alone, you would probably only be able to lend currently £500 per month, but on our property loans, some lenders are able to deploy £100,000 + per month. Cash drag is prevented by JustUs paying 1.2% p.a. on un-lent cash. We have received HMRC and FCA clearance to pay this on ISA and Non-ISA deposits. You can see all our live statistics and and risk profiles on the website. Many thanks for your response. I will look further at your website. Cheers. PS. I wouldn't say cash drag is 'prevented' by 1.2% pa, but it certainly helps and is a very good idea.
|
|
ashtondav
Member of DD Central
Posts: 1,805
Likes: 1,087
|
Post by ashtondav on Jul 18, 2018 7:31:07 GMT
If I could be assured I would be in guarantor loans I would sign up, but as I understand I can be loaned out to property developers on 75% LTV - and I’ve been right royally stuffed at FS with those characters!
|
|
huxs
Member of DD Central
Posts: 300
Likes: 218
|
Post by huxs on Jul 18, 2018 8:03:28 GMT
If I could be assured I would be in guarantor loans I would sign up, but as I understand I can be loaned out to property developers on 75% LTV - and I’ve been right royally stuffed at FS with those characters! You can select what types of loans to invest in and avoid the ones you don't
|
|
|
Post by justuslee on Jul 18, 2018 8:07:28 GMT
If I could be assured I would be in guarantor loans I would sign up, but as I understand I can be loaned out to property developers on 75% LTV - and I’ve been right royally stuffed at FS with those characters! Good morning ashtondav you can set your personal risk grade and lending level appetite, so if you want Guarantor Only then this is risk grade G1. You can also determine your individual lending risk profile in the IF-ISA ; full details on each risk grade is available on the website; you choose who you want to lend to; we’re passionate about providing options.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Jul 18, 2018 13:52:09 GMT
Sorry Ukmikk we don't receive any notification when comments are made and we've been mad busy completing the £540K bridging loan and on-boarding lot's of new lenders. I suggest you use our JustUs.co live chat for anything urgent, it's operational during working hours. When a borrower is late, we make contact with them first and if they can't/won't pay the guarantor pays. We have had a couple of instances where we have had to take the guarantor to court for payment, then they have paid in full. Of the 100 + loans to date no lender has lost any capital or interest. We complete about one Guarantor Loan per week, but this is planned to increase to at least 1 a day over the coming months. So on these loans alone, you would probably only be able to lend currently £500 per month, but on our property loans, some lenders are able to deploy £100,000 + per month. Cash drag is prevented by JustUs paying 1.2% p.a. on un-lent cash. We have received HMRC and FCA clearance to pay this on ISA and Non-ISA deposits. You can see all our live statistics and and risk profiles on the website. Hi justuslee, I have downloaded your loanbook and it shows only 14 Guarantor loans from jan17 to Jun18, significantly less than 1 per week. Is this correct? Also where can I find details of the risk grades please as I am unable to find them on the site. I have submitted my details yesterday and am waiting to receive login information, how long does this take (it says moments on the site!)? Many thanks.
|
|