star dust
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Post by star dust on Feb 9, 2016 14:55:54 GMT
I hope it flies (with or without the cash-back) as I think it would be good for the platform, property based investments will help build that scale and momentum, and actually I think seeing other loans are coming up too (ie Broadoak) will assist rather than hinder that. Thanks for airing here, glad to see you're maintaining MT's excellent consultation / communication. On a personal level, as you now have an SM I might be prepared to put a bit more in than I would normally for single loan/borrower diversity reasons.
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ben
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Post by ben on Feb 9, 2016 14:59:31 GMT
I might have missed something we currently have basically a 2nd and a 3rd charge loan already, and the 1st charge is currently owned by someone else.
Your currently plan is to make the current 2nd charge loan MT277 the 1st charge loan and MT328 the current 3rd charge loan the 2nd charge loan and buy up the current 1st charge loan and reissue it as part of the 2nd charge loan.
Why can you not buy the current 1st charge loan and issue it as that leaving the current loans were they are. Everybody was happy to buy MT277 and MT328 as a 2nd and 3rd charge so surely most people would be even happier to be in the 1st charge too I know I would
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madpierre
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Post by madpierre on Feb 9, 2016 15:04:54 GMT
Right I'll come clean. I'm only posting to get a MoneyThing 'likes this' However, I've been upping my stake in MoneyThing for some time now and see no reason not to continue. 1st Charge is better than 2nd and 2nd better than 3rd, especially at 13%. And if the later tranches struggle to fill, I might just keep a bit back in case of cash back, which is better still Over to you Ed
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SteveT
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Post by SteveT on Feb 9, 2016 15:07:06 GMT
I might have missed something we currently have basically a 2nd and a 3rd charge loan already, and the 1st charge is currently owned by someone else. Your currently plan is to make the current 2nd charge loan MT277 the 1st charge loan and MT328 the current 3rd charge loan the 2nd charge loan and buy up the current 1st charge loan and reissue it as part of the 2nd charge loan. Why can you not buy the current 1st charge loan and issue it as that leaving the current loans were they are. Everybody was happy to buy MT277 and MT328 as a 2nd and 3rd charge so surely most people would be even happier to be in the 1st charge too I know I would Firstly, that would entail an upfront £1.5m investment by MT and I'm not sure the float is yet THAT big (however much the chickens have thrown in). Secondly, as an existing lender in what would become the 1st charge loan, I much prefer the strategy that Ed has outlined. A "new" 1st charge loan would have to be priced below the MT277 rate and I'm not sure how keen MT lenders would be to throw in another £1.5m at 10% / 11% for a scheme they are already heavily exposed to. MT certainly know the value of keeping their lenders happy!
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Post by MoneyThing on Feb 9, 2016 15:08:55 GMT
Right I'll come clean. I'm only posting to get a MoneyThing 'likes this' However, I've been upping my stake in MoneyThing for some time now and see no reason not to continue. 1st Charge is better than 2nd and 2nd better than 3rd, especially at 13%. And if the later tranches struggle to fill, I might just keep a bit back in case of cash back, which is better still Over to you Ed ...now I am in awkward spot. Having been over jealous in giving out likes I can't seem to stop without fear that I will offend. I also realise that I can't cancel them as that looks even worse so I am left to the decision that for this particular thread I will like all posts regardless!
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star dust
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Post by star dust on Feb 9, 2016 15:11:22 GMT
Just noticed SteveT 's at it again, extolling the virtues of MT to the disgruntled members on the newly promoted Zopa Board! He's very persuasive you really ought to give him a commission Ed! .
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ben
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Post by ben on Feb 9, 2016 15:15:07 GMT
I might have missed something we currently have basically a 2nd and a 3rd charge loan already, and the 1st charge is currently owned by someone else. Your currently plan is to make the current 2nd charge loan MT277 the 1st charge loan and MT328 the current 3rd charge loan the 2nd charge loan and buy up the current 1st charge loan and reissue it as part of the 2nd charge loan. Why can you not buy the current 1st charge loan and issue it as that leaving the current loans were they are. Everybody was happy to buy MT277 and MT328 as a 2nd and 3rd charge so surely most people would be even happier to be in the 1st charge too I know I would Firstly, that would entail an upfront £1.5m investment by MT and I'm not sure the float is yet THAT big (however much the chickens have thrown in). Secondly, as an existing lender in what would become the 1st charge loan, I much prefer the strategy that Ed has outlined. A "new" 1st charge loan would have to be priced below the MT277 rate and I'm not sure how keen MT lenders would be to throw in another £1.5m at 10% / 11% for a scheme they are already heavily exposed to. MT certainly know the value of keeping their lenders happy! As an initial investor that was not going to put any more in to the new loan this would be great news with MT plan. It makes no difference to the person selling the loan what the new loan becomes so to them does not matter if a 1st charge or 2nd charge it becomes Also why would they have to offer it at 10/11% ?
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SteveT
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Post by SteveT on Feb 9, 2016 15:23:13 GMT
Also why would they have to offer it at 10/11% ? Otherwise the original lenders in MT277 would find themselves "locked in" to a loan that was very hard to exit via the SM. Would you buy parts in a 12% £500k 2nd charge loan if there was now a 12% £1.5m 1st charge loan in the same scheme? That's not how MT does business (I hope!).
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ben
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Post by ben on Feb 9, 2016 15:32:35 GMT
Also why would they have to offer it at 10/11% ? Otherwise the original lenders in MT277 would find themselves "locked in" to a loan that was very hard to exit via the SM. Would you buy parts in a 12% £500k 2nd charge loan if there was now a 12% £1.5m 1st charge loan in the same scheme? That's not how MT does business (I hope!). I agree on that point it would make MT277 and MT328 pretty hard to sell on the secondary market. A lot of big investors would probably be happy with it being a 1st charge as unless there is a complete property crash or the valuation is completely wrong the chances are they will get all the money back. For a lot of big investors it will probably be considered low risk compared to others offering the same rates
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madpierre
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Post by madpierre on Feb 9, 2016 15:38:33 GMT
Steve is right (us usual ). This has to be a lower priority loan so as not to eclipse the existing ones. Also 13% is better than 10/11/12% and will get more of my funds. I also hear Ed is considering the added incentive of an easter egg for each of us as a thank you from the chickens
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Grezza
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Post by Grezza on Feb 9, 2016 16:08:42 GMT
Steve is right (us usual ). This has to be a lower priority loan so as not to eclipse the existing ones. Also 13% is better than 10/11/12% and will get more of my funds. I also hear Ed is considering the added incentive of an easter egg for each of us as a thank you from the chickens I'll be in for a few 'k' certainly.....I like the sound of the easter egg incentive (if the rumour is true) being non dependant on guessing the time of the loan being filled, forget about the LTV's!!!!
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Post by ladywhitenap on Feb 9, 2016 16:10:44 GMT
As a relatively new and small investor in MT, I already have 38% with this borrower so I possibly would not go for any more exposure on this one. I would be quite happy to increase my total lent through MT via other borrowers but feel the need to diversify really. Thanks for making the enquiry though - its appreciated.
LW
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webwiz
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Post by webwiz on Feb 9, 2016 16:27:42 GMT
As a relatively new and small investor in MT, I already have 38% with this borrower so I possibly would not go for any more exposure on this one. I would be quite happy to increase my total lent through MT via other borrowers but feel the need to diversify really. Thanks for making the enquiry though - its appreciated. LW I am a long time investor with MT but I am also heavily exposed to this borrower - 37% including Bradford so share LW's view. I will keep my powder dry for Broadoak or another MT loan, though it's a shame to miss out on 13%.
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treeman
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Post by treeman on Feb 9, 2016 16:34:32 GMT
As others have said, I will be far keener to put some more £££s into this project with the existing 1st charge holder exiting, and my existing holdings going up a rung. Sounds like a decent plan/offer and I hope the appetite is there to see it through.
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paulg
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Post by paulg on Feb 9, 2016 16:43:25 GMT
I like this proposal Ed. I already have a large percentage of my MT funds in MT277 and MT328 but I will definately put more into these proposed further tranches. As has been said already the last couple of tranches may be a little slower to be taken up, but I think they would go - especially with the additional investors which this loan at 13% with a good LTV will draw in.
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