SteveT
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Post by SteveT on May 2, 2017 10:06:16 GMT
If security is as described and rate at least 12% then I'd say you're likely to get there, especially if the launch coincides with repayment of MTAI576-9. A few of us can certainly put the word around on one or two other platform boards ps. If it's a short bridge then a minimum guaranteed interest term will help, as will any confirmation that interest has been retained upfront. Oh, and cashback can be effective!
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treeman
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Post by treeman on May 2, 2017 10:08:49 GMT
The bare bones of 12% / 55% LTV - sounds like a reasonable proposal. I'd likely (subject to details of course) be prepared to up my bit to help it along but I'm no big hitter either ........
Some thoughts ......
At less than 12% may prove too big an ask.
Split risk tranches may leave the lower rate tranche struggling too.
Give as much time as possible on Pending for studying / DD / potential investor questions to be answered.
Give as much notice as possible of Launch Date for people to juggle funds (not all other platforms get £££s in and out as fast as MT!)
Launch early in the week.
No bid limits.
What are your biggest hitters looking for from the Loans or the platform in order to dig deep ?
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mikeh
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Post by mikeh on May 2, 2017 10:10:17 GMT
My gut feeling is at 12% it would be no problem. MT is #1 platform on this forum and there is a lot of pent up demand as witnessed by the SM. Go for it!
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Post by Deleted on May 2, 2017 10:23:41 GMT
I realise this forum isn't indicative of the entire wider investment world but in a recent poll I ran of sites used MT came out top, the platform in 2nd is consistently coming in for various criticisms. The evidence here suggests a significant body of people keen to move money away from there and when the only MT complaint I often read is how difficult it is to get money lent out it seems to me like the time to strike if there ever was one.
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jonno
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Post by jonno on May 2, 2017 10:24:29 GMT
Yes on balance I'd agree with the general positivity shown. At 12% (or above!), given the disquiet elsewhere there may never be a better time to test your resilience to this size of loan. I would certainly support it, and depending on specifics, at a higher level than my "norm". You know your business better than anyone Ed, but I'd say go for it.
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madpierre
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Post by madpierre on May 2, 2017 10:28:14 GMT
Loans at 12% with a reasonable risk level are an increasingly rare combination these days. Add to that growing dissatisfaction with other platforms and I am looking for a new home for a fair wodge, and I'm sure I'm one of many
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ozboy
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Post by ozboy on May 2, 2017 10:43:12 GMT
Morning, As some of you have noticed, we have started to build up a healthy pipeline which we hope will shortly start to propagate into a strong deal flow. Having just completed on our largest single loan advance of £1.56m within 30 hours (24hrs with bid restriction at 11% to lenders), I feel that at this time the c. £1m to £1.5m loan is achievable. (Note that MH is our largest in total - approaching £5m over 9 advances). I am also mindful that we have a had a bit of a drought recently which would have skewed the rate of uptake of the recent loan. Although we seem to be attracting 150 to 200 new lenders per month of which typically two-thirds go on to invest. Moving on from my preamble, we have just been approached to look at a c. 55% LTV cleared land with residential planning close to Leeds city centre. The loan looks strong with a good exit with someone lined up to undertake the development finance (GDV >£50m). The bridging opportunity is however £3.3m. Without discussing the specifics of this loan, are we biting off more than we can chew at this stage with a loan of this size at the moment (at say 12% to lenders)? Feedback gratefully received. Many thanks, Ed Ed, why is this Borrower talking to MT? At c55% LTV plus the other positives I'd have thought the Borrower could approach another P2P and pay less interest, which would of course mean less interest paid to Lenders, but this is what happens if it's a "good" Loan? I'm probably missing something obvious?
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Post by MoneyThing on May 2, 2017 10:58:05 GMT
Morning, As some of you have noticed, we have started to build up a healthy pipeline which we hope will shortly start to propagate into a strong deal flow. Having just completed on our largest single loan advance of £1.56m within 30 hours (24hrs with bid restriction at 11% to lenders), I feel that at this time the c. £1m to £1.5m loan is achievable. (Note that MH is our largest in total - approaching £5m over 9 advances). I am also mindful that we have a had a bit of a drought recently which would have skewed the rate of uptake of the recent loan. Although we seem to be attracting 150 to 200 new lenders per month of which typically two-thirds go on to invest. Moving on from my preamble, we have just been approached to look at a c. 55% LTV cleared land with residential planning close to Leeds city centre. The loan looks strong with a good exit with someone lined up to undertake the development finance (GDV >£50m). The bridging opportunity is however £3.3m. Without discussing the specifics of this loan, are we biting off more than we can chew at this stage with a loan of this size at the moment (at say 12% to lenders)? Feedback gratefully received. Many thanks, Ed Ed, why is this Borrower talking to MT? At c55% LTV plus the other positives I'd have thought the Borrower could approach another P2P and pay less interest, which would of course mean less interest paid to Lenders, but this is what happens if it's a "good" Loan? I'm probably missing something obvious? It might not immediately appear so, however we are actually pretty competitive in terms of rates offered principally because the interest rate the borrower pays and what we pay lenders is more closely aligned than people might think (also we don't show low monthly borrower rates and then just load it onto the arrangement and/or exit fees). Regards, Ed.
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ozboy
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Post by ozboy on May 2, 2017 11:01:41 GMT
Thanks. tbh I thought the only way it was possible was if your margins are tighter.
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ozboy
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Post by ozboy on May 2, 2017 11:07:06 GMT
Ed, why is this Borrower talking to MT? At c55% LTV plus the other positives I'd have thought the Borrower could approach another P2P and pay less interest, which would of course mean less interest paid to Lenders, but this is what happens if it's a "good" Loan? I'm probably missing something obvious? Might I suggest that you are naively assuming that if 'another P2P' platform pays its' Lenders less interest, that it is charging its' Borrowers less interest / fees / etc? Oh, no problem with suggesting, I'm naive alright! Forgetting Lender interest rates, my point is that another P2P could offer better Borrower rates for a "good" Loan?
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jj
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Post by jj on May 2, 2017 11:11:43 GMT
This isn't a hint (honestly) but you would get more money in if there was an isa on the go.
I know this isn't a high priority but this is what I need personally if I was to invest more. So I presume that there are others like me.
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ilmoro
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Post by ilmoro on May 2, 2017 11:22:49 GMT
Might I suggest that you are naively assuming that if 'another P2P' platform pays its' Lenders less interest, that it is charging its' Borrowers less interest / fees / etc? Oh, no problem with suggesting, I'm naive alright! Forgetting Lender interest rates, my point is that another P2P could offer better Borrower rates for a "good" Loan? Sorry what is the point of this line of enquiry? Of course, another platform could offer better rates, free chocolate, a chilli plant and some dancing girls. So what? Ed has put up a vague proposal to see general appetite and you are immediately asking why MT has 'won' the business thereby implying, based on nothing, that there is something wrong with the loan or the borrower or they would have got a lower rate elsewhere.
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Post by GSV3MIaC on May 2, 2017 11:23:16 GMT
Great minds think alike .. (even three of them) .. if Ed could fly the ISA I have 5 or 6 figure sum which could head towards the platform .. probably wouldn't punt it all on this one loan, but it would lubricate the wheels a bit. If not, the ISA (coming out of a fixed rate cash ISA in mid may) will probably go flexible, or maybe S&S, instead,
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keystone
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Post by keystone on May 2, 2017 11:24:32 GMT
Amongst all the optimism I would like to add a note of caution. Firstly, you could replace the figure of £3.3m with £30m and you would still get posters saying go for it. The 12% figure seems to be some magic percentage that appears to make a loan worth investing in, rather than the quality of the loan itself. There has been a shortage of new loans so there is plenty of pent up demand, dissatisfaction with other platforms atm and as you say some more new investors who may like to get their money lent out. I think you could fill the loan, BUT your the one running the business and in reality you know the level of demand better than any of us on the forum. I also think the diversification principle for investors also applies to platforms, having a good spread of loans but don't take on a loan if it creates an imbalance on the platform. I know none of us like to think about it but what is the risk to the platform if the loan goes bad? I like many have MT as amongst my favourite platforms and wouldn't like to see it overstretching itself. Timing the loan when another repays is probably the sensible approach to take, but this may not be under your control. Personally I wont' be able to invest new money and would just be shifting existing loans IF the loan looks reasonable.
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Post by westcountry on May 2, 2017 11:26:20 GMT
Ed, a couple more thoughts:
The interest rate is probably the main factor in whether the loan will fill or not. I think it would need to be 12% as a minimum to have a chance of filling, and 13% would make it pretty certain to fill I would think - the higher the rate the more likely people will sell other P2P investments and move the money to this loan.
The loan term will also affect how well the loan fills - if it repays in 3 months or so then an investor would have to shift money around now to put it in this loan, only to have to shift it again into a new loan in a few months time. The longer the loan term the better!
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