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Post by Ton ⓉⓞⓃ on Jul 1, 2014 12:01:17 GMT
West London Property Investment Loan - 5 years interest only - 9% per annum - 70% loan to value against second charge property.
Auction No. 110
Starts
2nd July 2014 at 14:00
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j
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Post by j on Jul 1, 2014 23:01:18 GMT
The only reason I can see this @ 9% is the fact that it's based in London where it might be perceived easier to sell/rent properties & thus finance the loan. There are loans listed with far better ltv & paying higher rates based in other parts of the country. Appreciate each loan is judged on its own individual merits but, it woud be very useful if andrewholgate can give us an insight as to the dynamics of determining the final rates & why such differences on seemingly better loans attract higher rates whilst other that seem less 'solid' attract lower rates. |
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Post by andrewholgate on Jul 2, 2014 8:13:46 GMT
j1I will when I can. At the moment, another matter is occupying my time and I would like to devote myself to that. Andrew
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Post by Ton ⓉⓞⓃ on Jul 2, 2014 8:58:19 GMT
It struck me that he seemed a fairly conservative guy, not a taker of unnecessary risks. He was slowly plugging away making his pension or enjoying his hobby. Either he bought them at just the right time or had a reasonable amount of money to invest, as to my mind there was a nice amount of equity in his properties. If there were to be a downturn in the economy it tends to be shorter lived in London
IN EDIT The other thing was he found AC on his own, so good at making his own way etc
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j
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Post by j on Jul 2, 2014 14:05:13 GMT
j1I will when I can. At the moment, another matter is occupying my time and I would like to devote myself to that. Andrew Thanks andrewholgate for the prompt reply. Look forward to it
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kermie
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Post by kermie on Jul 2, 2014 18:42:09 GMT
My initial reaction was also that this was not a great rate given the headline LTV of 70% - however, having read the credit report I can understand why this is not 10% or higher.
i) the second charge is on the borrower's own property - to me this is notionally stronger than a charge on a BTL, since it means you're family are at risk of being made homeless...hence in such cases a borrower would try even harder to avoid a default.
ii) the overall LTV on his portfolio is less than 60%
iii) his disposable income is pretty high
iv) the portfolio rent-v-loan cover is pretty decent
So with that I made a small bid on this one to diversify over the longer term.
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Post by mrclondon on Jul 2, 2014 20:36:33 GMT
iv) the portfolio rent-v-loan cover is pretty decent which leads to v) the covenant on portfolio rent-v-loan cover should ensure that a sale of a property or two is initiated if interest rates on the BTL mortgages were to soar. Whether now is a good time to be buying property in London is as always an impossible question to answer, but in my area of SE London whilst many asking prices this spring are speculative (20-25% up on zoopla estimates), properties needing work doing to them are generally priced sensibly. The only other area of concern is that if HS2 is approved parts of Ealing / Acton will be disrupted during construction work for several years despite the current plans to mainly tunnel through the area.
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Post by jevans4949 on Jul 2, 2014 20:45:00 GMT
When my parents were first married in 1948 in NW London, they were advised by their families that £2500 was way too much to pay for a house ...
(OTOH, prices can go down, as well as up.)
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