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Post by spanner on Jul 13, 2016 7:37:07 GMT
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alender
Member of DD Central
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Post by alender on Jul 13, 2016 8:19:33 GMT
Taking running income feels unfair - the borrowers that pay in full subsidise those that default after one payment and the PF has to clean up the mess.... As well reducing the cost for bad borrowers at the expense of the good ones it makes it cheaper to repay early and refinance at lower rate.
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Post by spanner on Jul 13, 2016 10:18:42 GMT
I've been a subscriber to Investors Chronicle for more than a decade... But I'm becomming disillusioned. Aside from a couple of journalists, it's the same old messages regurgitated repeatedly. And most mentions of P2P are negative or dismissive. They talk about diversification all the time, but never about P2P being a relevant part of this. Hargreaves Lansdown seem to have them on quick-dial for their latest quotes and thoughts, and it isn't like they don't have a vested interest in us all blindly buying managed funds. Kevin. Can only agree. It's the age of access journalism - write what we like....or else. And don't even start me on The BBC It is easy to just dismiss the negativity of the mainstream press in this way, but what of altfi.com and other industry commentators such as Lend Academy. Thos e outlets have always been pro P2P, indeed it sustains them, why are they now becoming more cautionary? The recent FT PF article lent heavily on a piece from AltFi. Is the industry press being swayed by the mainstream or is there more to it?
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Jul 13, 2016 10:55:07 GMT
We've known for a long time. It has both been flagged and much discussed on this forum.
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Post by spanner on Jul 13, 2016 11:55:35 GMT
Oh wow. Must have passed me by.. When exactly? What thread?
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Post by andrewholgate on Jul 13, 2016 15:38:31 GMT
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trevor
Member of DD Central
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Post by trevor on Jul 13, 2016 17:42:54 GMT
Your comment was below the belt Kev and I thought you knew better. I wouldn't have blamed AH if his reply was more forthright. A golden rule in business is do not talk down the opposition but rather talk you self up.
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starfished
Member of DD Central
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Post by starfished on Jul 13, 2016 17:51:21 GMT
Your comment was below the belt Kev and I thought you knew better. I wouldn't have blamed AH if his reply was more forthright. A golden rule in business is do not talk down the opposition but rather talk you self up. Don't think I read that as Kev talking down AH, the implication was that the kicking was directed at the Journalist...
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Post by westonkevRS on Jul 13, 2016 19:00:47 GMT
Your comment was below the belt Kev and I thought you knew better. I wouldn't have blamed AH if his reply was more forthright. A golden rule in business is do not talk down the opposition but rather talk you self up. trevor ? Not sure what you mean? It was more a dig at the journalist that Assetz, trying his best to find fault in the wrong places. andrewholgate knows I'm a fan, and I've proven it (he knows how).
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Post by westonkevRS on Jul 13, 2016 19:05:29 GMT
spanner, It was communicated more formally in this blog: www.ratesetter.com/blog/article/announcing_the_introduction_of_a_target_coverage_ratioBut I've talked about it on this forum for a long time. It shouldn't be news. At this current time, nearly£7m is contractually expected in Provision Fund contributions over the lifetime of our existing loan book. This isn't currently included in the published number or the coverage ratio, and this deferment is one reason the coverage ratio has reduced the last 12 months. So there is ae plan to improve reporting to rectify this, as per the blog. Kevin
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Post by propman on Jul 14, 2016 7:50:22 GMT
Oh wow. Must have passed me by.. When exactly? What thread? I'm sure it was said before, but it doesn't work like that. The credit fees are lent to the borrowers, so if they default with a deferred fee, the default is smaller by the unpaid contribution to the PF so the hit to the PF paid for by other borrowers is the same.
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Post by propman on Jul 14, 2016 7:56:22 GMT
Re the Assetz article, the assumptions are based on a higher rate tax payer. I agree that many BTLs only make sense if we assume rapid house price growth (so unrealistic) FOR HIGHER RATE TAX PAYERS. Someone lending from abroad on their first BTL would be a lower rate tax payer and so unaffected by the interest rate deduction changes. As for refinance risk, the article said the assessment of future loans needed to assume a lower APR than is currently paid by Assetz to the lender, so refinancing should lead to a much more affordable loan under these criteria. If there is really a 140% interest coverage now, this would look a good bet in the future as long as the property can be relet at the same or higher rent. Given issues for many BTL Landlords, I can only see rent increasing!
- PM
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Post by spanner on Jul 22, 2016 9:16:24 GMT
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Post by p2plender on Jul 22, 2016 9:57:19 GMT
Doesn't read well whichever way you look at it. Certainly not adding to investments in 5yr sub 6%ish. I like RS more than all p2p but I've downgraded my feelings to comfortable (ish) from comfortable.
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Post by Deleted on Jul 22, 2016 10:30:16 GMT
Doesn't read well whichever way you look at it. Certainly not adding to investments in 5yr sub 6%ish. I like RS more than all p2p but I've downgraded my feelings to comfortable (ish) from comfortable. Pretty much sums it up for me too. Not time for a panic sell-out (yet), but I'm certainly not reinvesting at these rates with the PF on its current trajectory. So I'm just withdrawing capital from RS as it comes due. A sudden 20% jump in expected claims does not inspire confidence.
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