ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168 
Likes: 4,859
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Post by ozboy on Jul 8, 2018 21:58:16 GMT
Yes, I did ask, and they replied that "Yes" it did apply, potentially wrt their Borrowers.  |
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trium
Member of DD Central
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Likes: 304
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Post by trium on Jul 17, 2018 15:39:55 GMT
Missed out; half went to 2 investors attracted by the low LTV, I would not expect FS to put a limit on they dont have the brain power to be able to know a small loan with low LTV will go to the few; frustrating Ignoring the subsequent unpleasant exchange between one of those investors and a critic, I note that there is a residual £16,150 available on the SM at 0.9% premium (just enough to get ahead of the other two tiddlers). That is what is frustrating. There should have been a subscription limit on this loan to prevent this kind of tactic.
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syalith
Member of DD Central
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Post by syalith on Jul 17, 2018 16:43:12 GMT
Ignoring the subsequent unpleasant exchange between one of those investors and a critic, I note that there is a residual £16,150 available on the SM at 0.9% premium (just enough to get ahead of the other two tiddlers). That is what is frustrating. There should have been a subscription limit on this loan to prevent this kind of tactic. It's me selling, I need the money for other purposes. It's not a "tactic". And notice there is no rush to take this loan now at an effective 8% interest, which proves my point that setting lower interest rates on popular loans is a better way to balance supply and demand than restricting everyone to £25 or some other paltry amount.
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susan
Member of DD Central
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Post by susan on Jul 18, 2018 16:04:06 GMT
hello,
with the 0.8 premium, it's an 8 % loan IF the loan lasts to term. If the loan is repaid sooner then the interest rate crashes.... which is why I do not buy many loans with high premiums.
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trium
Member of DD Central
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Post by trium on Jul 18, 2018 19:01:03 GMT
I don't see why anyone would buy a loan at any premium, especially not now with 18 loans on offer in the PM. More understandable, of course, is that people will sell at a premium if they possibly can. Some of those people will buy attractive loans competitively with the sole intention of offloading at a profit later. This works best on small-ish loans with generous/no subscription limits because you can basically create a supply shortage in a loan that is in demand. I'm not blaming the person who grabs the opportunity. I'd do the same if I'd spotted it. I simply assert that FS made an error on this loan by not restricting subscription. Having said that, I agree with syalith that interest rate variation is probably a better method of balancing supply and demand. |
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