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Post by phoenix on May 21, 2014 9:51:48 GMT
Hi, newbie here, I have a stake in the current £125k loan but there's only two days to go and it's not reached 50%. Any opinions on its chances?
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Post by mrclondon on May 21, 2014 13:00:26 GMT
FS seem to be attempting to force lender yields down at present compared to the typical 13% return. Their justification will be (on this one and the forthcoming paintings) c. 50% LTV compared to the more normal c. 70% ... but SS offer 12% fixed return and zero deadtime, and AC on 6 month bridges at least 12% (and with a shadow account a similiar 3 to 4 days deadtime).
My guess is this one will be extended by a week, with a rate increase (probably to 12%). I'm not interested at 11% for more than a token amount, at 12% I'll contibute if it looks like filling, at 13% I'd contribute immediately.
Current / future live loans:
£125k yachts 11% 52% LTV (47% filled after 5 days)
£35 k paintings 10% 45% LTV
£1.8k watches 10% 72% LTV
I'm not impressed by that last one.
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ramblin rose
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Post by ramblin rose on May 21, 2014 14:34:37 GMT
I've steered clear of all these lower rate loans. I'm a long time supporter of FS but only really on the 13% loans, with the occasional dabble at 12%. I was a bit surprised at how many people piled large amounts into the last one. Historically, if lenders hold back, the borrower can be persuaded to up the rate, but clearly not if lenders pile in anyway. It's a bit like the RS scenario where people willing to accept less than they need to, pull the rate down for everyone. As MRC says, 12% easily available elsewhere.
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bugs4me
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Post by bugs4me on May 21, 2014 21:11:22 GMT
I've steered clear of all these lower rate loans. I'm a long time supporter of FS but only really on the 13% loans, with the occasional dabble at 12%. I was a bit surprised at how many people piled large amounts into the last one. Historically, if lenders hold back, the borrower can be persuaded to up the rate, but clearly not if lenders pile in anyway. It's a bit like the RS scenario where people willing to accept less than they need to, pull the rate down for everyone. As MRC says, 12% easily available elsewhere. Agree 100% Rose, I'm not interested at less than 13%. So I guess the next move is up to FS to persuade the borrower - ball in their court. Unless of course enough are prepared to jump in at the lower rate then that may set the benchmark for the future. We will see whether I participate in future loans. Hmmm..............
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ramblin rose
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Post by ramblin rose on May 22, 2014 8:08:15 GMT
We will see whether I participate in future loans. Hmmm.............. The lower rate ones seem to generally be filling easily enough at the moment, even quite a large loan recently. I was thinking the same as you last night - newer lenders (and some of the older ones, actually) here are accepting lower rates, and it may be that they become the norm. I hope not, but if they do this might be another platform where my portfolio goes into run - off 
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star dust
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Post by star dust on May 22, 2014 10:42:01 GMT
Pricing to liquidity problem again... The difference between 10/13% to lenders is a negligible amount for the borrower, £27 on a £1.8k loan over 6 months. Would that be a deal breaker?? Well, if it's a deal breaker to the lenders why shouldn't it be to the borrower, who presumably is in need of cash?
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ramblin rose
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Post by ramblin rose on May 22, 2014 12:08:33 GMT
Pricing to liquidity problem again... The difference between 10/13% to lenders is a negligible amount for the borrower, £27 on a £1.8k loan over 6 months. Would that be a deal breaker?? Well, if it's a deal breaker to the lenders why shouldn't it be to the borrower, who presumably is in need of cash? For the borrower it is a negligible difference compared with what they are paying to FS overall, which is a very large percentage number - as lenders we are seeing a relatively small proportion of it. To us lenders it's a big difference between 10% and 13%. I'm very heartened to see that this afternoon's loan is/was at 13% though, although it was a small loan.
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star dust
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Post by star dust on May 22, 2014 14:31:10 GMT
For the borrower it is a negligible difference compared with what they are paying to FS overall, which is a very large percentage number - as lenders we are seeing a relatively small proportion of it. To us lenders it's a big difference between 10% and 13%. Well, I probably shouldn’t comment as I do not invest in FS, but if it’s the way you describe it then perhaps the suggestion should have been for FS to take the squeeze.
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ramblin rose
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Post by ramblin rose on May 22, 2014 18:13:13 GMT
For the borrower it is a negligible difference compared with what they are paying to FS overall, which is a very large percentage number - as lenders we are seeing a relatively small proportion of it. To us lenders it's a big difference between 10% and 13%. Well, I probably shouldn’t comment as I do not invest in FS, but if it’s the way you describe it then perhaps the suggestion should have been for FS to take the squeeze. They seem to have listened to you; they're offering cash back to anyone that invests enough money in the boat loan, which will increase the overall return to something more like normal. Unfortunately it's only for people who put in more than £20k, which will count most of us out. If it amounted to a really tasty rate I would have maybe liquidated elsewhere to go for it, but as it is, it wouldn't.
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star dust
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Post by star dust on May 22, 2014 18:56:59 GMT
They seem to have listened to you; they're offering cash back to anyone that invests enough money in the boat loan, which will increase the overall return to something more like normal. Unfortunately it's only for people who put in more than £20k, which will count most of us out. If it amounted to a really tasty rate I would have maybe liquidated elsewhere to go for it, but as it is, it wouldn't. Well, glad to have been of help  , but I was thinking more of the plight of the watch pawner than the boat!
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mikes1531
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Post by mikes1531 on May 27, 2014 22:39:07 GMT
Wednesday's jewellery loan will be an interesting test. The LTV is relatively high (67%), yet the interest to lenders is just 11%. I certainly won't be participating. And I'm not sure why anyone else would choose that loan over the yacht collection loan, where the interest rate also is 11% but the LTV is a much more favourable 52%.
We'll see.
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, but I was thinking more of the plight of the watch pawner than the boat!