agent69
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Post by agent69 on Nov 20, 2017 17:59:18 GMT
Not in a million years
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trevor
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Post by trevor on Nov 20, 2017 18:05:49 GMT
Not when I can get far higher rates on RS and they have a 5.5% rate with PF. Crazy.
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happy
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Post by happy on Nov 20, 2017 18:41:33 GMT
And you don't think being secured against an asset valued at approaching 3x the loan value is worth more safer than a PF that is only marginally above expected defaults?
I have to admit to not having looked at the loan details yet but if the security looks good I cannot see why 5% with a fairly liquid sm is not a fairly safe place to park some un-invested cash for a while at least. JMHO.
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mikes1531
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Post by mikes1531 on Nov 20, 2017 19:14:17 GMT
... if the security looks good I cannot see why 5% with a fairly liquid sm is not a fairly safe place to park some un-invested cash for a while at least. I may well be wrong, but I wouldn't expect a £525k loan at 5% to have a very liquid SM.
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happy
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Post by happy on Nov 20, 2017 19:43:55 GMT
Valid point, however this loan has a very low LTV so may be more attractive to risk-averse investors and looking at the current lower rate loans on AC they do seem to be reasonably well subscribed. 5% is breaking new ground for low interest rates though.
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mikes1531
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Post by mikes1531 on Nov 20, 2017 19:56:10 GMT
I'll certainly keep my eye on this one to see whether or not parts appear on the SM.
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misscas
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Post by misscas on Nov 20, 2017 20:40:20 GMT
... if the security looks good I cannot see why 5% with a fairly liquid sm is not a fairly safe place to park some un-invested cash for a while at least. I may well be wrong, but I wouldn't expect a £525k loan at 5% to have a very liquid SM. Unfortunately I think you may be proved correct. It looks to be a solid loan though and more people are becoming cautious so we may be surprised.
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trouble
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Post by trouble on Nov 20, 2017 21:24:23 GMT
Perfect loan for ISA launch
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Steerpike
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Post by Steerpike on Nov 20, 2017 23:35:08 GMT
Rates are dropping, there have been a number at 4.5% or 4.75% on LendInvest recently, Assetz are competing with the bigger boys now.
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Post by lusitania on Nov 21, 2017 6:33:01 GMT
There have been so far 4 loans at 5.5% but 5% is a new low record... unless AC are planning to open the IFISA real soon I think that my £2.5K on the Nationwide current account at 5% is still a better option even if it won't last for 5 years.
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pikestaff
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Post by pikestaff on Nov 21, 2017 8:25:31 GMT
I'm not tempted to invest directly, but I don't think AC expect us to. Not in numbers, anyway. It will be OK for the 30DAA / QAA.
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happy
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Post by happy on Nov 23, 2017 18:49:46 GMT
Only £20k sitting on the SM so not a bad take-up for a 5% loan. With this amount on the SM based on previous experience and the current in-flow of money to AC I think liquidity should be reasonable although probably not instant. Looking at the numbers I estimate about 45% is in the QAA/30Day so there has been pretty good take-up from the MLIA investors.
Personally I see these very low LTV low rate loans much more attractive at the moment than the likes of Zopa, FC etc with lower rates and no security and provide a useful lower capital loss risk balance in my portfolio
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jonah
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Post by jonah on Nov 23, 2017 19:39:06 GMT
Only £20k sitting on the SM so not a bad take-up for a 5% loan. With this amount on the SM based on previous experience and the current in-flow of money to AC I think liquidity should be reasonable although probably not instant. Looking at the numbers I estimate about 45% is in the QAA/30Day so there has been pretty good take-up from the MLIA investors. Personally I see these very low LTV low rate loans much more attractive at the moment than the likes of Zopa, FC etc with lower rates and no security and provide a useful lower capital loss risk balance in my portfolio I reckon around 464k is still in the QAA / 30day accounts. As AC know exactly what demand there is from the mlia, I’m guessing they released a little more than enough to give everyone their requests, leaving some, say 20k to persuade other buyers. I’m guessing that they might want to trickle out over parts as mlia demand mops up any more. Im not in this loan, due to the rate. Whilst i suspect its pretty low risk, getting a sub inflation post tax return in a potentially illiquid loan isn’t something I want unless it’s zero risk, which this isn’t.
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Post by df on Nov 23, 2017 19:47:59 GMT
There have been so far 4 loans at 5.5% but 5% is a new low record... unless AC are planning to open the IFISA real soon I think that my £2.5K on the Nationwide current account at 5% is still a better option even if it won't last for 5 years. Unfortunately Nationwide's offer only lasts for 1 year and then goes down to 1%  I enjoyed that little reward two years ago and still keep the account running to feed 5% regular saver. I like Nationwide for the consistency of their offer (unlike some other banks/bs) and it's an excellent rate for risk-free investment. I didn't even look at this AC 5% loan. It's not easy to accept such rate on MLIA, I've only recently began getting used to reinvesting in 7%ers, 5% without PF is too "advanced" for me grasp even at a very low LTV.
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happy
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Post by happy on Nov 23, 2017 21:18:17 GMT
Why do you need a PF when you have good asset security, in this case about 3x security? Sure the rate is low but right now for both personal and wider impending ecconomic reasons my focus is on selecting low risk investments on platforms I trust that have a low likelyhood of default and an even lower likelyhood of capital loss that also pay me above inflation returns (gross). I am sure I am not alone in the view that ROC always beats ROI, something that will be much more important over the next 12-36 months as we negotiate some fairly unpredictable and uncharted waters. As the famous Frank Spencer once said "There are old pilots and there are bold pilots, but there are no old, bold pilots".  In these times caution may prove to be the better part of valour I feel.
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I enjoyed that little reward two years ago and still keep the account running to feed 5% regular saver. I like Nationwide for the consistency of their offer (unlike some other banks/bs) and it's an excellent rate for risk-free investment. 
In these times caution may prove to be the better part of valour I feel.