Hi filipkaradaghi Will there be an option to carry over existing parts into the re-finance? If not will there be a repayment from the old loan before the new one goes live?
Hi n. We're finalising the logistics and believe that lenders into the current loan should be able to pre-commit all or part of their current investment for a certain time period into the refinanced loan as the repayment will not occur until the refinanced loan is fully financed and drawn down. In any event, we will announce the specific solution shortly.
Post by filipkaradaghi on Sept 19, 2017 8:42:16 GMT
It has been a while since we had a new loan on the platform so please find the following update about potential upcoming loans in the next weeks:
We currently have the following two loans that we expect to launch next week (or possibly the week after depending on the turnaround of valuation reports) subject to satisfactory assessment (all figures are preliminary and subject to change):
• Second charge bridging loan
• Security property: Owner-occupied 3 bedroom residential in Middlesex
• Loan amount: £116k
• Gross LTV: around 50-60%
• Annual rate: 11.4%
• Term: 12 months
• Interest retained throughout term
• Purpose of loan: refinance an existing loan
• Re-financing of the loan "Bridging Loan - Mandervell Road"
• Security property: Commercial unit (same as currently)
• Loan amount: £145k
• Gross LTV: 60-65%
• Annual rate: 10.9%
• Term: 6 months
• Interest retained throughout term
• Purpose of loan: refinance existing platform loan
In addition to the two loans above, we have issued a number of loan offers and are awaiting borrower acceptances prior to being able to proceed.
Post by filipkaradaghi on Sept 7, 2017 8:57:09 GMT
As you all know, today is the last day for the no-fee secondary market trial.
It has been an interesting experience and it has without any doubts increased activity on the market.
However, we have also received quite a few complaints about the emails that go out each time a new loan listing becomes available – the frequency of these emails has prompted around 40% of those that had email notifications enabled to switch them off during the trial period given the volume of emails that they have received.
Further, as we are still not prepared to fully-automate the secondary market, and will require an admin to review and approve each transaction, we will continue incurring administrative costs.
As such, we are likely to make an announcement tomorrow that the Sale fee will remain but will be reduced to 0.25%, or a 50% reduction.
We are also likely to announce that we will extend processing times into Saturday, allowing lenders to buy and sell loan parts on the weekend for those lenders that have limited time available during the week.
I am aware that this may be disappointing for some lenders, but we need to ensure that the secondary market is of benefit to all lenders and fulfils its main objective which is giving lenders the possibility to exit their investments before maturity.
Post by filipkaradaghi on Sept 5, 2017 15:06:59 GMT
Hi ilmoro. Yes, the fee waiver has without any doubt increased liquidity on the secondary market. We will shortly announce if the fee waiver will be permanent.
We're considering a fully automated secondary market and have been discussing it internally quite substantially. However, we're still not fully comfortable with a fully automated solution as it may be difficult to make any changes if something goes wrong - we need to ensure that lenders are protected from any undue complications. We will therefore continue manually approve each transaction until we're fully confident that a fully automated solution will not cause any unforeseen or unexpected issues. Hopefully, we'll be in the position to fully automate the secondary market in a few months’ time.
Post by filipkaradaghi on Sept 5, 2017 14:46:42 GMT
Thank you for your input, rs. If we would believe that the delay could have an impact on the borrower's ability and/or willingness to repay the loan we would likely withdraw the loan offer. However, it is still not a guarantee that payment difficulties would not occur going forward (subject to completion).
Post by filipkaradaghi on Sept 5, 2017 8:57:03 GMT
Hi all. It seems as the loan will be further delayed and could still eventually be withdrawn as the solicitors acting on the behalf of platform lenders are still not receiving satisfactory responses to enquiries (which is the sole reason for the delay).
As such, we welcome your thoughts and suggestions on how to proceed with this loan (and other potential future loans that experience protracted completion delays):
• Hold a vote among all investors that committed funds into the loan on whether the loan offer should be withdrawn. A weighted majority vote (50.1% or more) of those that invested would be required for a decision; or
• Set a final deadline (for example at end of business day Friday this week) to the borrower that the loan offer will be withdrawn if not complete by then – meaning all commitments will be returned to investors (resulting in cash drag).
The proposed first charge lender is fine with whichever course of action we choose to pursue, even if it could result in them also withdrawing their loan offer, as they understand the urgency for a resolution. We’re looking forward to hearing your thoughts and suggestions.
Post by filipkaradaghi on Sept 1, 2017 7:09:27 GMT
Hi all. We were unfortunately unable to complete yesterday due to an unexpected, potentially minor issue but potentially with a significant risk. We hope that we will be able to resolve it today and finally be able to complete, as unfettered security is of outmost importance to us. Further updates will be made in due course.
Post by filipkaradaghi on Aug 30, 2017 16:06:16 GMT
Hi all. The executed Security Documents (including the Deed of Priority) are currently being hand delivered to the solicitors acting on behalf of lenders. There is a very small chance that we will be able to complete today but most likely tomorrow morning/lunchtime.
Many thanks Filip, these changes are excellent, I'll have to re-check on the next SM listing as my invested amount had escaped me so I may have been juggling between tabs unecessarily!
For the SM email notification, would it be possible to indicate the loan and amount available so we know at first sight if it is one we would like to invest in?
& thanks again for the super-quick updates already!
Hi elliottm. Many thanks for the feedback! Very good suggestion and makes perfect sense - we will add it which loan the loan part relates to and the amount in the emails. Should be implemented shortly. Please let me know if you have any other suggestions.
Post by filipkaradaghi on Aug 25, 2017 16:06:00 GMT
Hi all. A loan update has been posted on the platform - we now expect the loan to complete the loan in the next week as we are awaiting the executed Deed of Priority prior to being able to complete. Hopefully, we will be able complete in the beginning of the next week as the borrowers are making arrangements to visit their solicitor to sign the Deed Tuesday 29 August.
Post by filipkaradaghi on Aug 25, 2017 13:48:04 GMT
By way of update, it is unlikely that the loan will complete by end of business day today. Therefore, the borrower servicing fee will be reduced and the rate payable to investors will be increased by 0.5% (on an annualised basis) - all lenders that have committed funds to the loan will receive an email next Tuesday confirming this.
I apologise for the unexpected and protracted delay.
Post by filipkaradaghi on Aug 22, 2017 16:22:17 GMT
After careful consideration, if the loan does not complete latest end of business day Friday this week, we'll reduce the borrower servicing fee with 0.5% and thereby increase the rate payable to investors with the same proportion.
However, I need to make it clear that LLI does not assume any responsibility for the delay as it outside LLI's control and we have done everything we can to bring this loan to completion (subject to satisfactory searches and other).
Hi all. A new loan update has been posted on the platform - we now hope that we will be able to complete in the next week. Just to clarify, the main reason for the delay is due to the solicitors working on the transaction and not borrower, who is keen to complete as soon as possible (subject to satisfactory searches and other).
This is about a month now - this is supposed to be bridging lending speed not a normal mortgage speed
Can you confirm if lenders are receiving interest during this period? If not, LI has tied up investors funds for a month earning no interest. If they are then not so much an issue
If the borrowers solicitors are not competent in dealing with this, then LI should intercede and insist that appropriate lawyers are used
I note this is not the only loan that is pending on the platform
Hi stevio. In retrospect, I fully agree with you - the borrower should perhaps have chosen another solicitor to represent him. I have seen the last enquiries sent by the solicitors acting on behalf of platform investors and have good hope that we should be able to complete shortly.
EDIT: As discussed in other threads and set out on the platform, including the T&Cs, interest only begins to accrue once a loan is draw down.