SteveT
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Post by SteveT on Jan 27, 2016 12:33:58 GMT
Hi MoneyThing / Ed This will be my first investment on your platform and I had a couple of questions on this particular loan and on more general stuff I would be grateful if you answer: 1. When do you expect the loan will drawn down once the loan has been filled, ie roughly how long before interest will start accruing; 2. Can I make multiple bids that total up to the 1% bid limit that is in place for the first 24 hours, or are we limited to a single bid? 3. Can loan parts that have been purchased, be subsequently sub-divided for sale in the secondary market (like SS), or do the loan parts remain whole and separately identifiable. I had intended to accelerate my deployment of funds on the platform by initially over buying PM loans, and subsequently diversifying by selling down and investing in new loans as they come to market. Obviously SM liquidity is critical to such a plan and I envisage size of loan part will impact liquidity if you are stuck will the original loan size bid, hence questions 2 & 3. I apologise for partially high-jacking this thread and raising questions that have probably been asked and answered elsewhere, but I'm very time poor at the moment! Thanks Nick 1) Interest accrues immediately (loans are already drawn down when launched on the platform, funded first by MT) 2) No, just 1 bid (but an email to Ed can usually get a second bid placed manually if there's still availability) 3) Yes, you can sell as little as £1 at a time (in £1 increments). Interest carries on being accrued while parts are listed on the SM (although mostly parts sell in seconds currently, once all new loans are filled anyway)
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Post by MoneyThing on Jan 27, 2016 12:35:13 GMT
Just for clarification. This project has outline planning permission. Detailed planning permission was submitted in Dec 2015 and is subject to approval of "reserved matters" by the city planning committee. Afternoon, With regards to the progress on Cardiff since October, they have progressed in finalising the reserved matters for the planning which includes satisfying all the conditions from the council to ensure that full detailed planning is ready to start the site. They have also progressed with the marketing of the scheme and will be ready to launch the units in the next 2 weeks. I will also upload the Brochures on the platform once this has been produced. Kind regards, Ed
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Post by MoneyThing on Jan 27, 2016 12:38:10 GMT
Hi MoneyThing / Ed This will be my first investment on your platform and I had a couple of questions on this particular loan and on more general stuff I would be grateful if you answer: 1. When do you expect the loan will drawn down once the loan has been filled, ie roughly how long before interest will start accruing; 2. Can I make multiple bids that total up to the 1% bid limit that is in place for the first 24 hours, or are we limited to a single bid? 3. Can loan parts that have been purchased, be subsequently sub-divided for sale in the secondary market (like SS), or do the loan parts remain whole and separately identifiable. I had intended to accelerate my deployment of funds on the platform by initially over buying PM loans, and subsequently diversifying by selling down and investing in new loans as they come to market. Obviously SM liquidity is critical to such a plan and I envisage size of loan part will impact liquidity if you are stuck will the original loan size bid, hence questions 2 & 3. I apologise for partially high-jacking this thread and raising questions that have probably been asked and answered elsewhere, but I'm very time poor at the moment! Thanks Nick Hi Nick, stevet beat me to it again! (I can confirm that stevet's answers are correct). Feel free to ask any other questions. Kind regards, Ed
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nick
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Post by nick on Jan 27, 2016 12:39:02 GMT
Hi MoneyThing / Ed This will be my first investment on your platform and I had a couple of questions on this particular loan and on more general stuff I would be grateful if you answer: 1. When do you expect the loan will drawn down once the loan has been filled, ie roughly how long before interest will start accruing; 2. Can I make multiple bids that total up to the 1% bid limit that is in place for the first 24 hours, or are we limited to a single bid? 3. Can loan parts that have been purchased, be subsequently sub-divided for sale in the secondary market (like SS), or do the loan parts remain whole and separately identifiable. I had intended to accelerate my deployment of funds on the platform by initially over buying PM loans, and subsequently diversifying by selling down and investing in new loans as they come to market. Obviously SM liquidity is critical to such a plan and I envisage size of loan part will impact liquidity if you are stuck will the original loan size bid, hence questions 2 & 3. I apologise for partially high-jacking this thread and raising questions that have probably been asked and answered elsewhere, but I'm very time poor at the moment! Thanks Nick 1) Interest accrues immediately (loans are already drawn down when launched on the platform, funded first by MT) 2) No, just 1 bid (but an email to Ed can usually get a second bid placed manually if there's still availability) 3) Yes, you can sell as little as £1 at a time (in £1 increments). Interest carries on being accrued while parts are listed on the SM (although mostly parts sell in seconds currently, once all new loans are filled anyway) Thanks Steve!
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SteveT
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Post by SteveT on Jan 27, 2016 12:45:31 GMT
1) Interest accrues immediately (loans are already drawn down when launched on the platform, funded first by MT) 2) No, just 1 bid (but an email to Ed can usually get a second bid placed manually if there's still availability) 3) Yes, you can sell as little as £1 at a time (in £1 increments). Interest carries on being accrued while parts are listed on the SM (although mostly parts sell in seconds currently, once all new loans are filled anyway) Thanks Steve! No worries. Just leave a bit for the rest of us!
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nick
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Post by nick on Jan 27, 2016 13:37:48 GMT
Hi MoneyThing / Ed
A couple more newbie questions if I may:
1. Fees - are any fees payable by lenders to MT in respect of loans held on the platform or in respect of subsequent resale on the SM, or is the platform wholly funded by fees levied on the borrower?
2. Accrued interest on parts sold on the SM - does interest on loan parts accrue to the seller until the sate of sale, ie is the sale price equal to capital outstanding plus accrued interest? If so, who bears the risk of non-interest payment in respect of the month of sale if there is a default, e.g. is the accrued interest credited to the seller immediately or at month end when interest is collected (probably not relevant as I understand that full interest on loans are deducted from the initial loan and held by MT so in theory no/limited risk of a default in interest payment mid loan).
3. Assuming that a seller on the SM is given full credit for intra-month interest accrued on loan parts sold, is accrued interest part of the price received formally recorded as interest (as reported as such on the tax statement) or as capital payment in respect of the principal sold? 4. Do you have arrangements in place for a third party to step in as platform/loan administrator in the event of MT's failure/insolvency etc (just trying to gauge how much platform risks currently exists)? 5. Are you able to guide me to the terms & conditions governing the operation of the SM (if there are any formal T&Cs) - I have had a quick flick through the main Terms & Conditions posted on the website plus the website itself, but couldn't immediately see anything regarding the operation of the SM.
Many thanks
Nick
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SteveT
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Post by SteveT on Jan 27, 2016 13:46:45 GMT
I'll leave Ed to deal with 4) and 5) but ...
1) No lender fees on PM or SM 2) Only the capital element is sold on the SM. Accrued interest for the part month up to the sale date is paid to the seller at the next monthly payment date (so the payment risk is shared) 3) Not really applicable as it's paid and recorded as interest (see 2)
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Post by pepperpot on Jan 27, 2016 13:50:36 GMT
Hi MoneyThing / Ed A couple more newbie questions if I may: 1. Fees - are any fees payable by lenders to MT in respect of loans held on the platform or in respect of subsequent resale on the SM, or is the platform wholly funded by fees levied on the borrower? 2. Accrued interest on parts sold on the SM - does interest on loan parts accrue to the seller until the sate of sale, ie is the sale price equal to capital outstanding plus accrued interest? If so, who bears the risk of non-interest payment in respect of the month of sale if there is a default, e.g. is the accrued interest credited to the seller immediately or at month end when interest is collected (probably not relevant as I understand that full interest on loans are deducted from the initial loan and held by MT so in theory no/limited risk of a default in interest payment mid loan). 3. Assuming that a seller on the SM is given full credit for intra-month interest accrued on loan parts sold, is accrued interest part of the price received formally recorded as interest (as reported as such on the tax statement) or as capital payment in respect of the principal sold? 4. Do you have arrangements in place for a third party to step in as platform/loan administrator in the event of MT's failure/insolvency etc (just trying to gauge how much platform risks currently exists)? 5. Are you able to guide me to the terms & conditions governing the operation of the SM (if there are any formal T&Cs) - I have had a quick flick through the main Terms & Conditions posted on the website plus the website itself, but couldn't immediately see anything regarding the operation of the SM. Many thanks Nick 1. No fees payable by lenders. What you see is what you get. 2. Accrued interest is 'remembered' and paid to whoever it's owed to when the next monthly payment is made. You sell capital only, and yes I think all MT loans are interest retained. 3. See 2. 4. and 5. will be better coming from Ed. edit; darn, Steve's got there first again. He needs weighing down with something. Was it 3 or 4 shredded wheat this morning?
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Post by MoneyThing on Jan 27, 2016 14:02:20 GMT
Thanks stevet.
Additional answers:
4. Yes, we have an arrangement in place with a 3rd party to administer & run down our loan book in the event MoneyThing (Capital Mortgages Direct Ltd), fails.
5. We are currently in the process of reviewing all our website content and Tc&Cs to bring them up to date after all the technical changes to the platform since launch. The SM (which we launched early December), has yet to be incorporated.
Kind regards,
Ed
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SteveT
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Post by SteveT on Jan 27, 2016 14:26:56 GMT
2. Accrued interest is 'remembered' and paid to whoever it's owed to when the next monthly payment is made. You sell capital only, and yes I think all MT loans are interest retained. Not sure that's right for all loans, although may be for some. For example, the art and car loans (where redacted loan agreements are attached) say "Interest and fees .... will be added to the balance on the same day of the month as the repayment is due. .... Full and final payment of £XXXX.XX due [loan end date] (loan can be extended by a further 6 months subject to interest being paid". So effectively as per Funding Secure but MT pay us monthly interest during the loan. For the big bridging loans and managed portfolios (CS / AE), my assumption is that interest is likely being paid to MT monthly. I can't imagine a 24 month loan being viable either on a "retain full interest" or "pay interest at term" basis. Of course, MT will be charging the borrowers rather more than the rate payable to lenders.
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Post by MoneyThing on Jan 27, 2016 14:39:26 GMT
2. Accrued interest is 'remembered' and paid to whoever it's owed to when the next monthly payment is made. You sell capital only, and yes I think all MT loans are interest retained. Not sure that's right for all loans, although may be for some. For example, the art and car loans (where redacted loan agreements are attached) say "Interest and fees .... will be added to the balance on the same day of the month as the repayment is due. .... Full and final payment of £XXXX.XX due [loan end date] (loan can be extended by a further 6 months subject to interest being paid". So effectively as per Funding Secure but MT pay us monthly interest during the loan. For the big bridging loans and managed portfolios (CS / AE), my assumption is that interest is likely being paid to MT monthly. I can't imagine a 24 month loan being viable either on a "retain full interest" or "pay interest at term" basis. Of course, MT will be charging the borrowers rather more than the rate payable to lenders. Our loans are a mixture between term, monthly & drawdown interest (with rates offered to borrowers adjusted accordingly). Therefore for term loans (whereby interest is paid at the end of the loan term), we fund the investor monthly interest out of our float/capital. Regards, Ed.
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nick
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Post by nick on Jan 27, 2016 14:58:05 GMT
Thanks Steve, Pepperpot & Ed for all your responses! It all sounds good to me - time for me to dip my toe in to the water............
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pom
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Post by pom on Jan 27, 2016 15:22:06 GMT
Thanks Steve, Pepperpot & Ed for all your responses! It all sounds good to me - time for me to dip my toe in to the water............ Make sure you're quick before the tide goes out!
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nick
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Post by nick on Jan 28, 2016 12:36:19 GMT
Just how quick will we have to be to land a bid? Are talking seconds, minutes, hours, or should we be okay within the first 24 hr restricted bid period? I had alternative plans to playing on a pc/phone at 9pm on a Friday night......
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webwiz
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Post by webwiz on Jan 28, 2016 12:42:33 GMT
Just how quick will we have to be to land a bid? Are talking seconds, minutes, hours, or should we be okay within the first 24 hr restricted bid period? I had alternative plans to playing on a pc/phone at 9pm on a Friday night...... MT try to arrange things so that it takes about 24 hours to fill, but there is obviously some guesswork involved.
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