mrsb
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Post by mrsb on Nov 9, 2018 16:01:35 GMT
Anyone got any idea how this scheme of senior and junior ranking loans works?
As I see it thru my limited understanding - You can lend at different "risks" for different returns at different LTVs .... on the same item(s) of physical security and (I think?) borrower guarantees.
New loan just been put into auction ... only the risky part on offer at the moment as far as I can see.
I can't get my head around what exactly is on offer (what risk if things go wrong).
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hantsowl
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Post by hantsowl on Nov 10, 2018 0:36:35 GMT
Seems a bit like the different tranches that proplend offer. It is down to the order that investors get paid back if a loan defaults and the property gets sold by administrators. The lower rate investors are paid back first. The higher rate (junior loan) investors then get repaid from what remains. Do your DD. If the borrower looks sound and the LTV looks sensible then the junior loan should be ok (barring a housing crash of course). It really is simply down to whether you are prepared to take more risk for a greater rate of interest.
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Post by slender on Nov 10, 2018 11:38:00 GMT
Received the following in an email dated 9/11/18 15:33, subject: "<recipients name>, what is your risk appetite?" - which may be in your trash. (It's from "Lender Support", which I originally misread as 'Lendy Support' so ignored until this morning!  ) There's also a link to this page - which may further enlighten.
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hantsowl
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Post by hantsowl on Nov 12, 2018 12:17:34 GMT
Anyone wanting a slice of the 'senior' part of Sefton had better act quick. 96.5% of the £330000 gone in 14 minutes, although £300000 was to a single investor!!
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IFISAcava
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Post by IFISAcava on Nov 12, 2018 12:34:56 GMT
Anyone wanting a slice of the 'senior' part of Sefton had better act quick. 96.5% of the £330000 gone in 14 minutes, although £300000 was to a single investor!! I would if they'd hurry up and repay Sto******
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