grahamg
Member of DD Central
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Post by grahamg on Aug 19, 2015 22:32:35 GMT
Not sure what the difference between these and the "A+" loans are:
Are they the one's where the builder run out of bricks?
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am
Posts: 1,495
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Post by am on Aug 19, 2015 23:54:55 GMT
Not sure what the difference between these and the "A+" loans are: Are they the one's where the builder run out of bricks? There are several different classes of secured loans on property. Most of the ones on FC are property development loans, where the loan is to finance the purchase, development and sale of a property, but there have been some commercial mortgages and bridging loans, and buy to let mortgages have been seen on other platforms. 15139 is a bridging loan, providing short term finance until the borrower can realize assets or longer term financing. According to FC's report, in this case the borrower intends to obtain planning permission for a residential conversion, which would be refinanced by a property development loan, which in term would be repaid from the proceeds of selling the resulting flats. If planning permission is not obtained, the fallback is to refurbish and let the property as offices, which presumably would be refinanced onto a commercial mortgage. I don't really know why bridging loans are considered more risky, but I've seen bridging loans and commercial mortgages run into trouble on other platforms.
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