shimself
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Post by shimself on Jul 16, 2021 18:57:58 GMT
I'm not a great believer in punitive rates unless one is sure that the borrower is just being an a**e. For me forbearance is often the right way to go being sure that the lenders are not being put into a worse position. So if with forbearance capital is returned and a lower of even no interest is received thats better than a capital loss and additional interest not received. I am a simple guy and do like the way AC in general manage the borrowers. There have been exceptions I know.
Of course there's no sense in driving a borrower out of business. And some borrowers don't deserve it.
But the uplift tends to be about 2-3%. Was 7% is 9% kind of thing. Not "punitive". In most cases extending the term for 6 months or so would cover it.
It turns it into choice, pay us, or defer a supplier, or change the program so house 2 gets finished after house 1. And actually AC now often do impose the penalty.
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shimself
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Post by shimself on Jul 14, 2021 15:23:37 GMT
Years ago now I waged war on AC (here mainly) because of their refusal to impose the enhanced rate of interest if a borrower was late (which was in OUR T&Cs, let alone in the agreement signed by the borrower, and in neither was labelled as discretionary). I think I wore them down somewhat.
But praise where it's due, they do seem to keep in contact with borrowers, I don't have any numbers but I think that their default rate is amongst the best of
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shimself
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Post by shimself on Jul 12, 2021 13:29:44 GMT
Moral of the story - don't allow your email address(es) to time out and potentially be recycled. If you have your own domain (eg bernythedolt.com, which is available from all good registrars) then you're all set
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shimself
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Post by shimself on Jun 21, 2021 13:17:38 GMT
email received today
Good morning,
I hope you are keeping well and haven’t been affected too much by the pandemic.
I am pleased to inform you that XXXXX paid their loan off in full a couple of months before their end date.
These funds were credited to your account but you may not have had the automated email to notify you of this – please accept my apologies for this.
As this was the final loan on the Funding Empire platform, we are now in the process of winding up the platform and returning all lenders funds on account back to them. Could I ask that you please login and make a withdrawal request for the funds you hold on account with us, if any.
Finally, we’d like to sincerely thank you for your support over the years. Although we didn’t have a plethora of loans, the ones we did list, all repaid in full and on-time.
If there is anything you feel I can help with in my role at Downing, please do let me know. More information about Downing and its’ products, can be found at: www.downing.co.uk
Best,
Parag, Dinesh and Jonathan Funding Empire
Thinks. All loans paid back. Didn't have a plethora of loans. Hmm. I wonder if these are connected
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shimself
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Post by shimself on Jun 14, 2021 18:54:48 GMT
Any chance of multiple small claims getting anywhere? (Sorry for those who exceed small claims limits)
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shimself
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Post by shimself on May 26, 2021 14:51:17 GMT
To remove risk from the building project going awry. First offering 6.5% 50%LTV, 7.5% at 70%LTV I might be tempted
Relendex introduces Development Exit Bridge Finance Relendex is pleased to announce that we are now offering Bridge Development Exit loans on completed, or near-completed developments.
By their nature, these loans carry less risk than our normal development loans and will offer marginally reduced interest rates on Senior loans with greater reductions on Junior loan coupons.
What is a Development Exit Bridge Loan? Relendex usually provides loans that finance everything from the acquisition of land with planning consent, all through the construction and sales stages. Clearly, the earlier in the construction cycle we become involved, the greater the risk that something can go wrong. Cost over-runs and delays routinely happen.
From the borrower’s viewpoint, a developer understands that a loan might be expensive to account for these risks. However, once the building work is complete, or nearly complete bar the snagging and perhaps landscaping, the risks are reduced, and the borrower is paying an unnecessary premium.
This is where Relendex can step in and offer a short-term loan, typically 6-9 months to finance the sales process until completion of all sales. The borrower receives a competitive deal, and our lenders can invest in loans with minimal capital risk. What type of return can our lenders receive? As the principal risk is one of liquidity, not one of capital loss, there is very little risk differential between Senior and Junior loans, they are both well supported by real assets, and only the most severe downturn in property values could jeopardise the Junior loan. As such, Senior loans will be paying in the range of 6.0% - 6.5%, and Juniors around 1% more.
The first Development Exit loan is due to list at 2PM tomorrow. Look out for the listing of the Southampton (Shirley Road) Development Exit Bridge in the Coming Soon section of our Marketplace. As this is our first loan of this type the yields will be at the top of the range, at Senior 6.5% and Junior 7.5%.
We believe that these loans will make a good contribution to your overall portfolio diversification.
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shimself
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Post by shimself on May 15, 2021 16:07:30 GMT
Anybody heard when we might be able to access money held in our accounts? I had a loan repaid around the time Thincats/BLN went into administration, keep requesting a withdrawal but no action. It’s all in FAQ 16 but basically client money held in accounts will be frozen for “several weeks” while the administrators verify they amounts due to each lender are correct and that the lenders identity and AML status are checked. AML checked AGAIN. Because presumably the administrators can slice £100 a head for doing it. Now these (and many others) are costs which should not be visited on investors, they should come out of the creditors pockets not ours
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shimself
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Post by shimself on May 12, 2021 12:52:13 GMT
Please see below an update to our T&Cs around capital and interest being paid. 8a. Compound Interest In the event that there is a repayment shortfall from the borrower, the order of the payment priority is the following: Firstly, capital will be repaid proportionally to all investors, Secondly, any unpaid interest (simple or compounded) will be repaid proportionally to all investors. This is different to that of tiered loans as each tier of the loan will be paid capital and interest in order, i.e. Tier 1 capital and interest repaid followed by Tier 2 capital and interest and so on (for the tiered loans T&Cs please read Part 7)
What does Firstly, capital will be repaid proportionally to all investors, mean? .
And please any unpaid interest (simple or compounded) will be repaid proportionally to all investors. This is just insanely incompetent. You cannot repay unpaid interest.
This section is headed Compound Interest and then goes on to discuss simple interest.
This is different to tiered loans as each tier.... So tiered loans are different from tiered loans, is that what you are saying
I promise you I try my very hardest to avoid lawyers, but you really really need someone who is capable of writing clearly. Of thinking clearly. If push comes to shove every investor can interpret that they are in the front of the queue, you might even finish up having to dig into your own pockets if a loan is not fully repaid.
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shimself
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Post by shimself on May 10, 2021 12:36:49 GMT
I recall at the start of the 2010's the P2P sector was having a lot of success and was growing fast (I was lending with Z and FC, and working at RS). There were just a few platforms with honest players trying to build something new with better investor returns. Then mid 2010's, a lot of new platforms starting to launch led by individuals that had no lending experience but knew a bandwagon when they saw one. My advice, look at the individuals involved in a platform, never fall for the PR gumph. Are they experienced in the sector, and do they have an unblemished career. View AttachmentI don't know about the past blemishes but he was clued up on btl
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shimself
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Post by shimself on May 10, 2021 12:34:19 GMT
The tier system in Kuflink doesn't make sense, bound to be changed soon. I only see a huge benefit to tier 1 investors and the lure of higher interest rates for disproportionate amount of extra risk. It is so non-sensensical that Kuflink's idea of recovery for one of these loans may not concur with an investor's idea of recovery.
Well IF it was tier 1 capital then tier 2 capital then tier 1 interest then tier 2 interest, then actually the difference in risk is much narrower that one might think. And really it's still unclear, but as interest is paid monthly it doesn't much matter
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shimself
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Post by shimself on Apr 29, 2021 9:00:00 GMT
Dead simple question posed to KL twice, no clear answer given If a loan goes wrong do investors in tier 1 receive both capital and interest before tier 2 investors receive anything? Your faq page kb.kuflink.com/knowledge/loan-tiers is not clear about tier 1 interest being paid before tier 2 capital. It just says Order of Priority, when capital is repaid.
Whilst the whole loan is secured by way of a 1st or 2nd legal Charge over the security property, the Tiers are ordered by priority. So, in the above example, Lenders who have lent funds in Tier 1 will be paid first on any capital repayment, then Tier 2, then Tier 3, and then Tier 4. When Lending in Tiered Loans, you and all lenders in all the Tiered Loans of the security charge are accepting the order of priority, linked to LTVs, when you invest.
Kuflink did answer this question on the forum before, the answer was that tier 1 capital and interest ranked ahead of tier 2. kuflink , please add this clarification to your Ts&Cs. The question is here: p2pindependentforum.com/post/332760/thread. The answer is here: p2pindependentforum.com/post/332779/thread.
WELL. Actually the point is moot because K pay interest monthly in the main, so I feel silly for asking HOWEVER I did get a reply. Which said the exact contrary Select-Invest: In the event of receivership we will only pay back capital to all tier 1 and the tier 2 and so on. Interest will only be added at the end if it might be compounded. If you have opted to be paid monthly you will already have received the interest due.
As you can appreciate this will be deemed as a case by cases basis as the variables can effect the process. Therefore, I cannot give you 100% clarity as it may change due to the individual circumstances.
Here is a snippet of our T&C’s around the subject: In the event that there is a repayment shortfall from the borrower, the order of the payment priority is the following: Firstly, capital will be repaid proportionally to all investors, Secondly, any unpaid interest (simple or compounded) will be repaid proportionally to all investors. Kuflink reserves the right to suspend and/or end compound interest. Kuflink reserves the right to remove the compound interest feature from the platform
Full our full T&C’s please see the following link: www.kuflink.com/investor-terms-conditions/
KUFLINK you really really need to make your minds up.
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shimself
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Post by shimself on Apr 27, 2021 12:51:36 GMT
I'm probably not typical, being invested in the BTL properties, which are of course each owned by a separate company (a SPV).
I've seen in the proposals I think a notion that they think investors would favour selling these properties off, and yes that's my opinion. My concern is to try to keep the administrators away from this; we need an estate agent not some people charging £350 an hour (not to forget FF getting his kilo of flesh).
I'm completely out of my depth in how to set about this, any ideas?
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shimself
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Post by shimself on Apr 27, 2021 12:44:56 GMT
Dead simple question posed to KL twice, no clear answer given If a loan goes wrong do investors in tier 1 receive both capital and interest before tier 2 investors receive anything? Your faq page kb.kuflink.com/knowledge/loan-tiers is not clear about tier 1 interest being paid before tier 2 capital. It just says Order of Priority, when capital is repaid.
Whilst the whole loan is secured by way of a 1st or 2nd legal Charge over the security property, the Tiers are ordered by priority. So, in the above example, Lenders who have lent funds in Tier 1 will be paid first on any capital repayment, then Tier 2, then Tier 3, and then Tier 4. When Lending in Tiered Loans, you and all lenders in all the Tiered Loans of the security charge are accepting the order of priority, linked to LTVs, when you invest.
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shimself
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Post by shimself on Apr 16, 2021 19:39:19 GMT
Is there another forum anywhere where this is being discussed? Or a website, as for Lendy's disgruntled lenders? I am surprised that there are so few participants in this thread. If this is the only place that this is being discussed, then there's your answer shimself. There's another thread on the private board, but not a huge amount of activity. I think TC has been in wind down so long now, with just a trickle of returns, that administration hardly seems like much change for lenders. I would assume/hope that the legal action wrt NG loans will continue under the administration, you might think it would be be nearing some sort of resolution by now, we are told ESF should be continuing the wind down of the loan book as planned. But what we've found out is that administrators don't much care about mere investors. Their legal obligation is to creditors. They don't mind corresponding with lawyers because they charge say £500 an hour for doing so, but I don't think there's any difference for them between winning and losing.
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shimself
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Post by shimself on Apr 16, 2021 14:21:30 GMT
Their website says Money&Co. has been lending for over 5 years and has only had two bad debts so far, representing a bad debt rate of 0.03 per cent per annum.
If true that's excellent. How much is this a massaged stat?
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