|
Post by mrclondon on Aug 13, 2019 13:18:40 GMT
To an extent MT can "only play the cards they are dealt" .... however this week's new loan is perhaps not best suited to the current fragile state of the self select p2p sector. What is really needed at this point is a stream of relatively small (say < £300k) loans secured against assets valued on an as-is basis for which a fire sale value can be determined with reasonable certainty.
Agreed but they would normally get remortgaged via Banks. Only the "complicated" ones come to P2P unfortunately. Yes that is undoubtably the case. It has however been suggested before that there is potentially an untapped market for p2p finance to complete auction purchases where time is of the essence.
One of the never ending discussions at my last employers was the relative ease of selling 'product' vs 'services', and hence the benefit of productising the service offering. The impression I get is AC has adopted the 'productisation' principle for their marketing to borrowers ... we read them offering their 'Development Exit Bridging Loan' for example. (Lots of background online regarding the concept of productising services).
I think there would be merit in MT attempting something similar, and being able to offer a "product" which describes the solution to quick finance for auction purchases.
|
|
withnell
Member of DD Central
Posts: 550
Likes: 491
|
Post by withnell on Aug 13, 2019 13:27:00 GMT
I think there would be merit in MT attempting something similar, and being able to offer a "product" which describes the solution to quick finance for auction purchases.
I fear regulation will get in the way here, unless they get a panel of underwriters on board with the plan. With the inability to self-fund the offering, they'll struggle to sign up enough borrowers - would you be happy to bid on a property at auction, become legally obligated to buy the property and then have your funding pulled due to lack of lender interest?
|
|
|
Post by flobberchops on Sept 20, 2019 22:31:05 GMT
Sorry to dig up an old thread - did the new "lite" loans ever materialise? I see there's a platform update from the 12th of August advising of a same-day loan launch but I see no further trace of it, or any follow-up notifications.
Am I being thick, or has the idea been put on ice?
|
|
KoR_Wraith
Member of DD Central
Posts: 293
Likes: 297
|
Post by KoR_Wraith on Sept 20, 2019 22:55:03 GMT
|
|
|
Post by mrclondon on Sept 20, 2019 23:01:28 GMT
Sorry to dig up an old thread - did the new "lite" loans ever materialise? I see there's a platform update from the 12th of August advising of a same-day loan launch but I see no further trace of it, or any follow-up notifications.
Am I being thick, or has the idea been put on ice?
The loan launched, but didn't prove to be popular with lenders, so was withdrawn a short time thereafter. (If you login into MT, go to the completed loan tabs, and click on MTBM1009, then select the updates tab, then 'Read more' under 19/08/2019 you'll be able to read MT explanation for the withdrawal.) In brief it was impossible to convince prospective lenders that it was anything other than 'high risk', and it was a huge loan compared to current demand for p2p investments.
p2p in general is suffering a credibility crisis at present, and whilst lower risk / lower rate loans make a lot of sense conceptually, there are very few opportunities of that ilk available for p2p platforms to chase. There is an 8% opportunity currently listed on FS which probably fits the bill but its filling very slowly, in part due to no interest accruing until the loan draws down, but mainly due to loss of confidence in FS as a platform.
This is going to be a tough nut to crack for MT, as too many people have had fingers burnt on too many loans.
|
|