Brainer
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Post by Brainer on Jun 6, 2017 14:19:31 GMT
Just reviewing my loans coming to an end shortly to decide if I wish to renew or not. In particular BB00332 (2016 Mercedes), presumably the value will have depreciated in the six months since inception, so how will the renewal work (if there is one)? Will the LTV increase above 70%? Or will the borrower have to pay a fraction of the loan off to compensate for the reduced security value? And further, this is a loan where it is said your "motor trade partner who in the event of default by the borrower will purchase the vehicle at the loan amount". Does this 'agreement' get renewed at loan renewal, as presumably the deal is worse for them if the car has depreciated? Thanks. Collateral Rep
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Brainer
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Posts: 186
Likes: 323
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Post by Brainer on Apr 25, 2017 14:48:44 GMT
Just doing some research on this loan and found it was listed Zoopla on 20th April 2017 with a guide price of 2.65M - apparently already sold STC. Borrower's initial plan was to use the house as "his company's Northern base", and updates suggest he is working on refinancing. Changed his mind or am I missing something?
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Brainer
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Likes: 323
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FundingSecure (FS) in Administration
Picasso
Jan 12, 2017 14:45:08 GMT
Post by Brainer on Jan 12, 2017 14:45:08 GMT
Still interested in the loan's details if anyone cares to share. "Description: "La Minotauromachie" etching and engraving with scraper on laid Montval paper, unsigned, unnumbered, an impression of the seventh (final) state plate, executed in 1935, Renowned for painting as well as sculpture, Pablo Picasso is arguably the greatest printmaker of the twentieth century. He created more than two thousand printed images, working primarily in intaglio techniques but also, for extended periods, in lithography and linoleum cut. He created 50 etchings of "La Minotauromachie" across seven series, each series addressing imperfections from the previous series. This etching comes from the last series and is arguably one of the most valuable."
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Brainer
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Likes: 323
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Post by Brainer on Nov 8, 2016 1:22:10 GMT
stevefindlay: Thank you for a comprehensive and insightful answer. Out of interest, have there been many/any platforms that upon review you have decided not to continue using? (Obviously I don't expect names).
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Brainer
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Posts: 186
Likes: 323
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Post by Brainer on Nov 7, 2016 15:28:15 GMT
stevefindlay... Just a few thoughts regarding BondMason: With rates coming down across a lot of the P2P industry, do you anticipate lowering your target of 7% in the future? I understand you vet each P2P company before investing through them but do you / are you planning to review each platform at set intervals? I ask because in my brief time in P2P lending the perceived health and direction of several of the major players has changed greatly, as is probably to be expected in a new industry. One of the biggest risks is platform failure and this will depend a lot on adaptability (or lack thereof), so while a platform may have appeared sound when you first investigated them, this can change quite quickly for a number of different reasons...
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Brainer
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Posts: 186
Likes: 323
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Post by Brainer on Nov 7, 2016 14:43:47 GMT
In the previous loan description there was no mention that the vehicle was still to be purchased and it said you had raised a legal charge of the vehicle - how could you do that if the vehicle had not even been purchased? This crossed my mind too. Also makes me wonder whether the vehicle had really been "checked with HPI" and was "fully insured". Given the unusual timing of the loan and subsequent events and comments, I get the feeling this loan was very rushed. I just hope that all necessary legalities are now in order...
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Brainer
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Posts: 186
Likes: 323
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Post by Brainer on Oct 27, 2016 12:44:40 GMT
Update 5 days ago on this (and PBL055) state "Loan extended for 12 months" yet both still show negative time remaining. Why would that be? Hasn't prevented both being fully funded on the SM though. It did however prevent (or at least deter) me from being one of those to fund it though. This is a pretty clear example of an update not providing enough information, further confused by the end date remaining negative.
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Brainer
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Likes: 323
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Post by Brainer on Oct 18, 2016 14:43:50 GMT
There was an email about this loan? I don't appear to have received one...
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Brainer
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Likes: 323
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Post by Brainer on Oct 12, 2016 23:17:27 GMT
Looking for a referral if anyone is interested? Thanks.
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Brainer
Member of DD Central
Posts: 186
Likes: 323
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Lendy (L) in Administration
SS vs FS
Oct 6, 2016 0:30:58 GMT
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Post by Brainer on Oct 6, 2016 0:30:58 GMT
Thanks to james and mikes1531. Definitely sounds like something to investigate for me then. If my maths is correct, mike's example gives a return of about 23% (annualised) for the month the buyer holds the loan, so even taking into account the negatives of buying loans near term, that sounds a decent strategy. Obviously your example may not be typical, but I guess I'll find that out when I sign up. And thanks for the warning re tax threshold.
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Brainer
Member of DD Central
Posts: 186
Likes: 323
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Lendy (L) in Administration
SS vs FS
Oct 5, 2016 14:03:31 GMT
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Post by Brainer on Oct 5, 2016 14:03:31 GMT
On pure interest terms FS looks like the clear winner because the interest is tax free for individuals if you can sell the loan before it is paid. That's a substantial premium over the Saving Stream effective interest rate for most individuals. I like monthly interest but I like receiving more interest more than that. Six months isn't a long time. FS would also appear to be quite interesting for those who get interest tax free, either due to lower income or if they can hold in a SIPP or perhaps in the future an ISA. The secondary market buys at a discount to account for the tax liability then are a pure discount without the tax liability that prompted the seller to sell. I'm not in FS but as a non-taxpayer this caught my attention. Do I have this correct? People sell at a discount on the FS SM to avoid/reduce tax, which isn't applicable to me so I can reap the full benefits of the discount? But won't they only do this right at the end of the loan term, so I won't actually benefit much or for long? And like other sites, near the end of the loan term is considered the riskiest time to hold? And presumably people will be more likely to do this on the perceived riskier loans (like the SS SM being full of negative day loans)? So, as a strategy this might not necessarily pay off long-term despite the discount benefits?
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Brainer
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Post by Brainer on Sept 8, 2016 0:54:26 GMT
Could anyone give a brief summation of what went wrong on the Anglesey loan?
I'm new to p2p, but having just scanned the particulars I imagine it looked like a decent enough loan to start given the reasonable LTV (which should've only decreased as refurbishment took place) and a rental income (which I gather is a plus point).
Just wondering if there are any lessons to be learned from this loan.
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Brainer
Member of DD Central
Posts: 186
Likes: 323
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Post by Brainer on Aug 30, 2016 19:49:00 GMT
Trivial point but on the registration page where you can select 'Custom' for 'Capital Deployment Settings', under 'Concentration' you've misspelt 'your' as "yor".
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