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Post by scrumper on Mar 25, 2024 8:33:12 GMT
There are some sub 10% loans in the pipeline, are these the first ones in while or have I missed others?
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Post by Ace on Mar 25, 2024 8:57:37 GMT
There are some sub 10% loans in the pipeline, are these the first ones in while or have I missed others? There have been many that were listed as sub 10%, but they were all changed to 10%+ before they went live. I don't think there were any that made it as far as the day before it gets funded though, so this might be different. It would be poor form from CP if they have adjusted their rate range without informing lenders.
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Post by Ace on Mar 25, 2024 9:02:48 GMT
Another thought: they've only raised £13m in the first quarter so far this year, against a full year of £101m last year (so roughly £25m per quarter). So, perhaps they are having to drop rates to compete.
I think that the first quarter of last year was also pretty slow though.
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eeyore
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Post by eeyore on Mar 25, 2024 9:35:20 GMT
Alternatively, it's simply supply & demand - the loan is only £100k and the last phase offered was heavily over-subscribed at 10.1%.
Edit 28-Mar: Ooops! Where did the 10.1% come from? My list of the loans offered says that the rate was 10.3%!
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Post by scrumper on Mar 25, 2024 10:55:45 GMT
I wasn't questioning the reasons, but as Ace said, poor form if this has changed without notification.
"CrowdProperty will also be significantly increasing rates offered to investors to 10.0% - 10.5% on projects from this week." July 2023
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firedog
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Post by firedog on Mar 25, 2024 12:26:27 GMT
Don't want to be seen as a CP apologist, but I can't remember CP ever giving advance notice that rates might be weakening; and I don't think I'd expect them to, particularly when 10% plus is still on offer in most cases.
Last year's notification that rates were going up was, I suspect, a bit of PR designed to entice reluctant investors who were getting cheesed off with the 7% or so that had hitherto been available (ISTR CP had made quite a deal to potential borrowers of not raising their rates, but rising inflation eventually forced their hand).
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Post by Ace on Mar 27, 2024 16:44:17 GMT
It's now clear that CP's rates to lenders for new raises have reduced. There are 2 loans due to fund tomorrow, both are at a 0.3% drop from previous tranches. There is also one loan in the pipeline (2 tranches) at 9%.
It really is poor form that they don't keep lenders informed. There will be many autoinvest lenders who just let the system run, and will have no idea that they're now lending at lower rates.
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eeyore
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Post by eeyore on Mar 28, 2024 9:27:34 GMT
Agreed, but the second loan, initially stated at 9.8% earlier this week, has been boosted to 10.0% which meets the threshold of CP's claim of interest rates in the range of 10.0 - 10.5%. But still below the 10.3% offered in the loan's Phase 1 tranche.
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Post by scrumper on Apr 2, 2024 10:53:43 GMT
There are now loans next month as low as 8% which really is a significant drop from 10%.
I hope there is a lot of auto-invest funds available at launch because one of them is for £2 Million.
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Post by Ace on Apr 4, 2024 8:57:56 GMT
There are now loans next month as low as 8% which really is a significant drop from 10%. I hope there is a lot of auto-invest funds available at launch because one of them is for £2 Million. The one that was showing as 8% (I think it was Oxfordshire phase 2) is now showing as 10.2%. However, Oxfordshire phase 1 is showing as 9.8%. I suppose they could be different loans.
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Post by scrumper on Apr 4, 2024 10:32:41 GMT
There are now loans next month as low as 8% which really is a significant drop from 10%. I hope there is a lot of auto-invest funds available at launch because one of them is for £2 Million. The one that was showing as 8% (I think it was Oxfordshire phase 2) is now showing as 10.2%. However, Oxfordshire phase 1 is showing as 9.8%. I suppose they could be different loans. The £2 million at 8%, which I think was in Norfolk, has gone too.
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Post by Ace on Apr 9, 2024 10:47:18 GMT
Tomorrow's loan on CP is at 10% to lenders, a full 0.5% below previous tranches.
Nothing in the pipeline above 10.2%. Still no announcement from CP that their rates have dropped.
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