Repayment priority in split tranche COL loans

Not for any normal second ranking loan (e.g. a second mortgage) and I can find nothing that says anything else applied here.

That's the approach adopted by MT for the Birkenhead loans certainly, but in the case of a 2nd charge loan with an external 1st charge lender, the 1st charge lender would take their capital, interest and fees before the 2nd charge holder gets anything unless a specific deed of priority was agreed (and lodged at companies house with the charge) between the two lenders at the time the 2nd charge was registered. Such a deed of priority normally caps the total £££ the 1st charge holder can claim ahead of the 2nd charge holder.

It would seem very simple for them to be straight forward and transparent.

I wonder what would happen if a P2P platform went into administration. The administrators could treat the whole loan as a first charge and repay lenders equally regardless of the tranche priority.

someone said on another thread that with the rising loan interest, earlier tranches are safer? how does it work out?

All later tranches that rank behind the earlier ones will provide the earlier ones with a protective 'cushion'. Capital is repaid before any accumulated interest. So, ignoring recovery costs for a moment, in the case of this loan only £1.683 million needs to be recovered for all 12% first rank holders to recover their capital money. £2.764 million needs to be recovered for all 12% and 14% loan holders (first and second ranks) to recover their funds (i.e. an extra £1.081m). A further £300k needs to be recovered before any third charge holders the 15% ones recover their capital i.e.£3.064m in total. Thus first charge holders have a £1.381m capital cushion behind them, and the second rank (14%s) currently have a £300k cushion behind them. Further tranches at 15% or higher increase the cushion for the earlier (lower interest rate) tranche holders.