markr
Member of DD Central
Posts: 766 
Likes: 426
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Post by markr on May 20, 2014 14:29:07 GMT
As the subject says. New A+ property loan online and filling fast.
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Post by ranjeb on May 20, 2014 16:58:05 GMT
Missed it, only made one of the property loans so far, looking down the lst of bidders a lot of repeated names :/
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Post by aloanatlast on May 20, 2014 18:10:53 GMT
Haven't got shut of the last one yet, and the discount is up to 1% now. Don't think I'd have been tempted to bother with this one, even though there isn't much else to turn a profit on.
Don't see the point of the cashback. They could achieve the same effect all round with a lower borrower fee and a higher contract rate.
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fasty
Member of DD Central
Posts: 1,038
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Post by fasty on May 20, 2014 18:23:05 GMT
Indeed; I don't know why there was such a rush, 7% gross doesn't look that attractive. I bought a few parts, attracted mainly by the better-than-average security and short term. I didn't buy any surplus parts to milk the cashback, since experience with the previous development loan at 7% suggests that they sell very slowly at par.
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Post by GentlemansFamilyFinances on May 23, 2014 11:25:07 GMT
I managed to pick up some of the last 2 property loans.
Personally, I don't really want to invest in property and I think that the risks are underestimated.
Anyway - 1 loan is on the secondary market at the moment and it is selling very slowly.
With over 2,000 parts for sale - at a price of 7.0% - it'll sell very slowly.
I think that the next cashback loan will fail to sell as quickly - I would have put as much as I could in the 8.5% loan - but at 7.0% - it's not that attractive.
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is
Posts: 108
Likes: 14
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Post by is on May 23, 2014 12:21:02 GMT
Haven't got shut of the last one yet, and the discount is up to 1% now. Don't think I'd have been tempted to bother with this one, even though there isn't much else to turn a profit on.
Don't see the point of the cashback. They could achieve the same effect all round with a lower borrower fee and a higher contract rate.
2% cashback is equivalent to 3.635% upfront coupon payment for the 45% tax payer (cashback is exempt), or roughly 2.55% increase in coupon (assuming 7% discounting) for the 18 month loan - so you are getting A+ secured at 9.55% for 18 months, effectively.
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