j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Oct 3, 2014 18:07:54 GMT
£100k, 5 yrs, 9% pa, 55% ltv
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Post by chielamangus on Oct 3, 2014 18:13:20 GMT
I am not certain I am believing my eyes on this one.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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Post by j on Oct 3, 2014 18:19:45 GMT
Mostly seems to be second ranking charges & debentures. After the recent Sth Manc debacle where the second charge seemed meaningless without first charge holder authorisation, I think I might sit this one out despite what looks like a low ltv. The one positive is the area in which the co operates which can have a positive ethical/social influence.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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Post by j on Oct 3, 2014 18:21:19 GMT
I am not certain I am believing my eyes on this one. 
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Post by batchoy on Oct 3, 2014 18:36:51 GMT
The one positive is the area in which the co operates which can have a positive ethical/social influence. It depends how you view making money out of the foster care system. My credit rating service comes to a vastly different conclusion to that of the CreditSafe report and is based on the same data.
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Post by andrewholgate on Oct 4, 2014 10:45:09 GMT
Mostly seems to be second ranking charges & debentures. After the recent Sth Manc debacle where the second charge seemed meaningless without first charge holder authorisation, I think I might sit this one out despite what looks like a low ltv. The one positive is the area in which the co operates which can have a positive ethical/social influence. The second charge isn't meaningless. Please see the thread on that one, but in short the first charge holder cannot stop us appointing, but they do get preference on who the Receiver would be. The second charge is very meaningful, otherwise we would not have put forward the loan.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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Post by j on Oct 4, 2014 18:47:01 GMT
Mostly seems to be second ranking charges & debentures. After the recent Sth Manc debacle where the second charge seemed meaningless without first charge holder authorisation, I think I might sit this one out despite what looks like a low ltv. The one positive is the area in which the co operates which can have a positive ethical/social influence. The second charge isn't meaningless. Please see the thread on that one, but in short the first charge holder cannot stop us appointing, but they do get preference on who the Receiver would be. The second charge is very meaningful, otherwise we would not have put forward the loan. , the wording of last update on the Sth Manc loan intimated that there was no point in activating the 2nd charge option. If, as you indicated, this is in contradiction to reality, then clarification is needed so that there is no confusion on lenders' part as to the value of 2nd charges
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Post by andrewholgate on Oct 4, 2014 20:14:14 GMT
Worried I'm going to look dumb here but I always assumed that having second charge means that we would not get any cash returned in a recovery until the first charge holder had got 100% of what was owed to them. So it's much worse holding a second charge rather than a first? That is correct, but the first charge holder cannot stop us from enforcing the security.
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Post by jevans4949 on Oct 4, 2014 20:15:33 GMT
As I see it (and I am no expert), the value of a second charge as security depends on the borrower's equity in the property, which in this case more than covers the loan. The risk then would be a serious collapse in London residential property prices; if that were to happen then it would probably be in context of an even deeper crisis across the economy as a whole, and all bets would be off for any AC loan. This charge is really underpinning of the personal guarantee; we would just need to be sure that there was no possibility of a third charge.
What we are betting on is the borrower's management skills, in general and in this market sector, to be able to return the loan in good time so that we don't have to resort to selling his house.
As for making money out of foster care, they are probably better value for money than the council's in house staff, and if there were evidence that an agency were making a bad job of it, their contract would probably be cancelled far quicker than it would be possible to fire council in-house staff.
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Post by Ton ⓉⓞⓃ on Oct 5, 2014 13:27:13 GMT
This auction's now launched, but chris when you get to work on Monday; the repayments don't seem quite right. |
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mikeb
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Post by mikeb on Oct 5, 2014 19:11:19 GMT
This auction's now launched, but chris when you get to work on Monday; the repayments don't seem quite right. That's twice as bad as this one! Keep doubling up and we'll end up millionaires when a £1 loan pays back 
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jjc
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Post by jjc on Oct 9, 2014 12:39:22 GMT
£1k bid limit has been lifted on this loan now
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mikes1531
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Post by mikes1531 on Oct 9, 2014 14:53:53 GMT
£1k bid limit has been lifted on this loan now In the current environment, in which very few auctions have been well supported, much less completely filled, the imposition of bidding limits seems to be rather unnecessary. Lifting bidding limit on this loan to £10k hasn't exactly brought in a flood of bids -- the grand total of today's bids so far is just £290.
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jjc
Member of DD Central
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Post by jjc on Oct 9, 2014 16:48:21 GMT
I think AC are wanting to allow a wider base of (also new) lenders to participate, seems fair enough to me. Don't expect loans to fly out the door instantly, not all lenders are connected 24/7 onto the AC site, take-up might quicken in due course once more peeps have had the chance to read & duedil.
Personally I think this is a good loan. There's a tendency it seems amongst some (on this forum anyway) to focus solely on the security, forgetting perhaps the fundamental business case behind the loan & the likelihood of the repayments being made. If that is strong then security becomes less important (if never irrelevant). Just my thoughts.
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jjc
Member of DD Central
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Post by jjc on Oct 11, 2014 12:27:32 GMT
Loan take-up picking up now (10% gone despite the lack of lenders' free funds &/or preference to buy on the AM). After what we've seen on the AM last few days following the redemption of SM*ncs, I reckon this loan (& at least a good portion of BMLT2 & P** windie to name just 2 more) will disappear mighty zippily when H***ney BL redeems next week.
Last week there were a lot of other BL's into which lenders could recycle, there are none now. An interesting week ahead.
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