grahamg
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Post by grahamg on Oct 21, 2015 16:18:23 GMT
Well i put the question to LC about underwriting and got this response.
"I can confirm that all the Investors on our platform are individuals, some of which are high net worth individuals. We have no institutional capital. Each Investor can choose an interest rate that they feel comfortable with. "
"We are not involved in setting rates as a company and until the loan has closed everyone has a fair opportunity."
Interesting !
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grahamg
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Post by grahamg on Oct 21, 2015 13:28:37 GMT
G*** A** F******** is a perfect example of what is wrong . We have Bid £35,200 /Target£30,000 with 1 day to go.
However looking at the bids there some very large one's. L** £5,000 10.60% 07/10/2015 16:35 Live
s******* £5,000 10.50% 07/10/2015 10:07 Live
s******* £5,000 10.35% 05/10/2015 20:35 Live
s******* £3,000 11.00% 01/10/2015 18:19 Live
s******* £3,000 11.00% 15/10/2015 15:42 Live
If S******* is underwriting then only 47% of the loan is available to ordinary lenders if its all underwriting then only 31% who are now bidding against themselves as the loan is oversubscribed.
So in house maybe are both pushing the loan rate down and squeezing the amount available. I don't see max investment limit in the T&C maybe there should be ?
I have no problem with in house filling the remainder of a loan at the end of auction but not at our expense.
A little edit on SSL S*** holds 50% of loan and on SL 40%
Any thoughts?
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grahamg
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Post by grahamg on Oct 16, 2015 23:36:31 GMT
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grahamg
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Post by grahamg on Oct 16, 2015 12:39:57 GMT
Hi All a question for the financial gurus out there! Is there any simple way to compare the potential return on an amortising loan with fixed interest borrowing. Specifically I'm heavily into SS - for lots of reasons not least its simplicity. Each month you get 1 per cent of your capital, but of course it's locked away for the loan term (and in practice for many of their loans for rather longer as we know). I'm trying to compare this against an opportunity to invest £2500 at 18 per cent with a business known to many ReBS investors. Again a two year term. I would earn £495.42 interest over the two years with the latter versus £600 with SS. But of course with the amortising loan I would have a large chunk of capital repayment each month to reinvest unlike SS when I only get the interest to reinvest. And the risk with an amortising loan diminishes with time (if the capital isn't reinvested that is). I imagine that somewhere, someone has a fancy s/s which allows a comparison between returns assuming that all monies earned/returned each month for the balance of the 24 month term, but so far I've not been able to find one! Thanks in advance! John If you invest £1000 at 10% for 12 months. With SS or other interest only loans at the end of the year you have £1100 if you do nothing. With Rebs or amortising loans if you do nothing you have only got £1054.99. (5.5%) If you want your 10% you have to keep reinvesting the returned principal without delay every month in another 10% loan.
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grahamg
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Post by grahamg on Oct 16, 2015 12:08:08 GMT
Website now says under "New structure details available" NEW P2P TRUST STRUCTURE We have amended the new terms and conditions for lenders on the Saving Stream website. They can be found here: www.savingstream.co.uk/termsAll new loans will be completed using these T&Cs.
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grahamg
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Post by grahamg on Oct 16, 2015 11:57:10 GMT
As this will be the first loan under the new T&Cs i wonder how that will affect the underwriting. Also what's the loan for and repayment route ? Is it? Yet to be confirmed. All will be revealed by the CR, the absence of which make the 'probably by end of this week' launch seem unlikely. Doubt it will need CB, lots of redemptions imminent NEW P2P TRUST STRUCTURE We have amended the new terms and conditions for lenders on the Saving Stream website. They can be found here: www.savingstream.co.uk/termsAll new loans will be completed using these T&Cs
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grahamg
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Post by grahamg on Oct 16, 2015 11:32:19 GMT
Does anyone think the upcoming Somerset loan might need cashback offer to shift or will it be the case that there's little else going on so it will be snapped up without CB? As this will be the first loan under the new T&Cs i wonder how that will affect the underwriting. Also what's the loan for and repayment route ?
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grahamg
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Lendy (L) in Administration
Q&A Facility
Oct 16, 2015 11:24:54 GMT
Post by grahamg on Oct 16, 2015 11:24:54 GMT
As all future loans will be true P2P is there an urgent need for a Q&A facility on the website. Currently i can't see any way to send questions when logged in !!
Are you working on this SS?
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grahamg
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Post by grahamg on Oct 14, 2015 18:06:52 GMT
We have evidence that they have been paying this rent for the previous 5 years at or near the amount mentioned in the valuation in the company that owned it previously. This new co has just been set up to manage all the groups own assets. The problem with the rent is the valuers report on page 7 they are assigned the opposite way round to appendix 4 needs correcting one way or the other. Next its not really an office block , its a mix of office and workshop, difficult to split up. From Companies House Records it would appear that as far as the companies associated with the property owner go: ************ ********** LTD formed 30 Jul 2014 owns the office block. There is an existing charge on this property , no accounts filed yet. **** ******* formed in 2015 and occupies part of the building on a lease signed this year . One company has a current P2P loan, no accounts filed yet. I will wait and see what the security is but maybe give this a miss. I would want to know where the money is going and i don't see where the money is coming from to repay the loan.
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grahamg
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Post by grahamg on Oct 14, 2015 12:33:19 GMT
arbster perhaps your criticism was understood and this time the underwriter has stepped in to almost fill the loan without knocking out any higher bids. This achieves a reduction in the average interest rate and also ensures that anyone else wishing to enter the bidding process has to do so at a lower rate thus knocking off the top bids. Same result but without direct responsibility. Perhaps I am being over sensitive and perhaps even cynical, heaven forbid I would agree that without underwriters many platforms would not succeed. I just would prefer that they refrain from manipulation and that platforms remember that if our money is desired then it should be respected. If we are taking W*** H***** Some bids must have been knocked out as the total bid = 25120, except it does not show in the bid list, only adds to 25001. I can understand that maybe there are not yet enough lenders to fill loans but I think its wrong for in house to buy 60% of the loan in the first days and then have it close 2 days early. First they are making the loan seem more popular than its is. Second as has been said they are lowering our rates. Of course the upside is that everything is available on the SM for new investors to diversify and get their bonus!. I think we need a statement from LC. I don't think they are trying to manipulate rates but they are walking a fine line and maybe not getting it right, if there is a right.
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grahamg
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Post by grahamg on Oct 10, 2015 20:54:28 GMT
I think the underwriting has a different purpose. If you look at the SM you can buy parts in all the loans they have issued. Because the numbers and deal flow is so low they need to give new lenders something to buy into and diversify else no £100 pound bonus. So its for SM liquidity. Will always sell your part above theirs and new lenders can always buy.
As far as SAS goes asked several questions could not figure it out, husband and wife team, operates out of a residential address.
Motto: Never trust an accountant asking for money.
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grahamg
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Post by grahamg on Oct 8, 2015 17:26:54 GMT
I had 45 out of 289 loans. Like SteveT, many of mine are at good rates, either early closers or ones where I got in at the end. A fair few of my Es are WL rejects too, which may be more understandable. Many of them are now on the SM, but some I think I'll take a chance with. They can't possibly all default, but I was definitely more critical in my evaluation this time round. There are no failed "E" WL rejects so far
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grahamg
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Post by grahamg on Oct 8, 2015 15:21:42 GMT
Of the Reject WL Defaults all are within 12 payments
1-3 payments 5 defaults 4-6 payments 6 defaults 7-9 payments 5 defaults 10-12 payments 2 defaults
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grahamg
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Post by grahamg on Oct 8, 2015 13:56:07 GMT
I think I might be about to go through and identify all my rejected WL parts... My thought exactly Found 8 rejects 5 A+ and 3 A
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grahamg
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Post by grahamg on Oct 8, 2015 10:17:38 GMT
I know I can sometimes drop off and miss things but when did Well Heeled arrive? Thanks, I missed it too, and dealflow is still relatively slow so I don't check in daily. Very pleased to see that it's down as an 8-day auction, and filling quite fast. Thanks for listening, lendingcrowd. Filling fast? 8 out of the 12k bid so far is LC cash as far as i can see
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