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Post by cpaken on Jun 1, 2016 15:33:42 GMT
Hi there,
Does the borrowers have to pay all the interest upfront like on Saving Stream or do they pay monthly?
Thanks
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Post by ablrate on Jun 1, 2016 17:11:54 GMT
Hi
They pay monthly.
Regards
Ablrate
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Post by GSV3MIaC on Jun 22, 2016 16:53:02 GMT
Which is good, it means if they flee to South America with the cash they only have a 31 day head start before we notice, instead of a whole year. 8>.
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stevio
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Post by stevio on Jul 2, 2016 13:55:15 GMT
Which is good, it means if they flee to South America with the cash they only have a 31 day head start before we notice, instead of a whole year. 8>. Or it means we only know month by month if they actually can afford the loan How do MoneyThing and fundingsecure handle interest for the loan
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ben
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Post by ben on Jul 2, 2016 14:09:26 GMT
MT have previously said they usually pay monthly too, funding secure is at the end of the loan. If they renew they pay the 6 months interest. I much prefer the monthly ones as like said before we know earlier if the loan is going to go into defualt.
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stevio
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Post by stevio on Jul 2, 2016 14:47:10 GMT
MT have previously said they usually pay monthly too, funding secure is at the end of the loan. If they renew they pay the 6 months interest. I much prefer the monthly ones as like said before we know earlier if the loan is going to go into defualt. Do you mean you prefer monthly to end of loan or monthly to upfront? If the interest payments are the reason for default, if they have to pay the interest upfront then you know at the start of the loan, which is earlier than a month plus down the line Additionally, you know the interest payments aren't reliant on future profits, which may or may not appear and might be dependant on future market conditions. For example the Brexit might well effect a borrowers future profits and their ability to pay the interest
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ben
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Post by ben on Jul 2, 2016 14:52:34 GMT
If you look at the SS board for example a few of the loans have pretty much been for what the person paid for the property plus the interest for the year so is it really any better?, and you do not find out for at least a year if the loan will go into default or not.
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stevio
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Post by stevio on Jul 2, 2016 15:05:49 GMT
If you look at the SS board for example a few of the loans have pretty much been for what the person paid for the property plus the interest for the year so is it really any better?, and you do not find out for at least a year if the loan will go into default or not.
Not following?
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blender
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Post by blender on Jul 2, 2016 15:59:56 GMT
The loan prospects rather depend on how long ago the property was bought and what the current valuation is. I am not keen to lend to fund straightforward property speculation, without any improvement.
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Post by Deleted on Jul 2, 2016 16:41:21 GMT
I like this interest up front bit concept, backed up by 'proper job' security, you know the kind of security that you can then whip from underneath the feat of a defaulter and resell to repay the entire loan or very near as does it. SS have been very good at this thus far [some of us currently own a a whole Garden Centre where the plants are attracting much interest prior to onward sale. Ablrate are doing a pretty decent job on this count too and ReBS are finally getting to grips with all things 'proper job' Security as well, 'bout time! I am a BIG fan of Security, and by supporting applicants that know what their doing, know their market and have a passion for how they do it [Careful Timothy  ]. Here's a thoughtful question, does anyone really like insecurity? |
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ben
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Post by ben on Jul 2, 2016 21:14:33 GMT
I like this interest up front bit concept, backed up by 'proper job' security, you know the kind of security that you can then whip from underneath the feat of a defaulter and resell to repay the entire loan or very near as does it. SS have been very good at this thus far [some of us currently own a a whole Garden Centre where the plants are attracting much interest prior to onward sale. Ablrate are doing a pretty decent job on this count too and ReBS are finally getting to grips with all things 'proper job' Security as well, 'bout time! I am a BIG fan of Security, and by supporting applicants that know what their doing, know their market and have a passion for how they do it [Careful Timothy ]. Here's a thoughtful question, does anyone really like insecurity? Im glad you mentioned the garden centre as that was one of the offers on SS I avoided like the plague. The inital loan was for £1,700,000 yet the amount paid by the borrower wss £1,475,000 add a years interest and it is getting close to the actually loan amount. So how much did the borrower actually put in themselfs? Probably not a lot as it demonstrates that as they failed to do whatever they wanted to do and have just walked away. So yes the asset when assessed might have been worth £2,400,000 on paper but obviously nobody wanted it for that as they got it for nearly a £1,000,000 less. Hopefully though in this case they done of the work they wanted to do and improved its saleability at target rate. I can see a lot of the FS loans going this way in the future.
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