ingwer
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Post by ingwer on Dec 6, 2017 14:27:23 GMT
This loan is really not very popular. I am playing a waiting game before investing (a small amount) to see if this loan will even succeed. The BHs and also ahem the LHs (Little) appear to be avoiding this but I cant really see why? Anyone have any thoughts?
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Post by Badly Drawn Stickman on Dec 6, 2017 14:33:30 GMT
This loan is really not very popular. I am playing a waiting game before investing (a small amount) to see if this loan will even succeed. The BHs and also ahem the LHs (Little) appear to be avoiding this but I cant really see why? Anyone have any thoughts? I think its current level of popularity is about right.
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Post by shyinvestor on Dec 6, 2017 15:12:36 GMT
This loan is really not very popular. I am playing a waiting game before investing (a small amount) to see if this loan will even succeed. The BHs and also ahem the LHs (Little) appear to be avoiding this but I cant really see why? Anyone have any thoughts? I think many people will have been put off by the phrase "the company is currently in Receivership". I certainly was.
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ingwer
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Post by ingwer on Dec 6, 2017 17:24:52 GMT
Rightly or wrongly I am a fan of Collateral's as their DD appears more thorough than certain other sites. It still seems odd that the CB is not attracting the numbers. Maybe a higher rate is required to reflect the negatives.
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hazellend
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Post by hazellend on Dec 6, 2017 19:24:42 GMT
Rather than a higher rate of cashback, I would favour a lower LTV of 50% (and assurance this will remain first charge over future higher interest loans for DFL)
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ingwer
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Post by ingwer on Dec 6, 2017 19:38:23 GMT
I meant a higher interest rate as opposed to higher CB rate as the CB itself is not seemingly attractive enough. A higher interest rate for the initial loan might help any future SM too. But that adjusts the headline rates and maybe / maybe not enough to address the underlying issues here that is affecting the take up.
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oik
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Post by oik on Dec 7, 2017 11:08:33 GMT
Well there's a lot of spare cash looking for a home floating around at the moment so if loans can't get away now then something's amiss.
Perhaps too many very high-risk loans with rates that don't match that risk trying to compensate with a small amount of 'cashback'. Investments in this loan under £5k get just 0.25% cashback and I notice the majority of investments are under £1000. If the BHs aren't attracted by an extra 4% then not too surprising that 0.25% or so for the minnows isn't doing it either. Seems many have cottoned on that an extra pound or two for being locked into a loan for six months, or far longer, with the double whammy of being paid no interest while they attempt to sell, possibly for months, possibly throughout the term, isn't much of a deal. Cashback offers for unattractive loans may now be seen as a negative by as many peeps as they encourage. Collateral may need a rethink.
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littonowl
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Post by littonowl on Dec 7, 2017 14:22:45 GMT
Well there's a lot of spare cash looking for a home floating around at the moment so if loans can't get away now then something's amiss. Perhaps too many very high-risk loans with rates that don't match that risk trying to compensate with a small amount of 'cashback'. Investments in this loan under £5k get just 0.25% cashback and I notice the majority of investments are under £1000. If the BHs aren't attracted by an extra 4% then not too surprising that 0.25% or so for the minnows isn't doing it either. Seems many have cottoned on that an extra pound or two for being locked into a loan for six months, or far longer, with the double whammy of being paid no interest while they attempt to sell, possibly for months, possibly throughout the term, isn't much of a deal. Cashback offers for unattractive loans may now be seen as a negative by as many peeps as they encourage. Collateral may need a rethink. For me, that rethink would include the odd bit of bling, every now and again.
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Post by Collateral Rep on Dec 8, 2017 12:54:52 GMT
Afternoon,
UPDATE RE: BL00079-1-2-3-4
The borrower has agreed terms with the receivers for us to take first charge on the land and are also in advanced talks with Travelodge who have issued Heads of Terms.
They have also been approached by a Student Property Development company who are interested in building student accommodation on the site due to it's close proximity to the University of Derby, Chesterfield Campus.
Following further discussion with the borrower they have agreed to raise the interest rate to 15% for investors. This rate will be applied to all loan parts previously bought.
The Cashback Incentives remain the same.
Many thanks,
Gordon
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ingwer
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Post by ingwer on Dec 8, 2017 13:28:04 GMT
The update and rate increase should help the loan to get over the line and benefits both the BHs and others too.
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spyrogyra
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Post by spyrogyra on Dec 8, 2017 13:53:46 GMT
Definitely it will benefit the borrower, COL, the big hitters and all those who manage to get out on time. I'm not sure for the rest. 19% interest is similar to Mintos second hand car loans in Latvia, but they come with a guaranteed payment from the originators in case of 60 days non payment. But hey, we are in UK!
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Post by westcountry on Dec 8, 2017 14:11:25 GMT
The 15% interest rate has made me have another look at this loan, despite the cashback & resulting inevitable jammed secondary market. But I haven't been able to find any details of the purchase price of this land that the loan is secured on, to see how this compares to the VR. Could anyone advise me if I've missed something, please? Collateral Rep, would it be possible for you to find out the purchase price of the land from the borrower, please, and upload it onto the loan page? |
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Post by Collateral Rep on Dec 8, 2017 14:16:33 GMT
Hi westcountry, The borrower has owned the land for a number of years and is looking to refinance. Many thanks, Gordon |
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kaya
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Post by kaya on Dec 8, 2017 14:33:16 GMT
I for one will not pander to this blatant bribery. Oh, come on now, 19%!!!  Now I just have to find another 99k.
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awk
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Post by awk on Dec 8, 2017 14:57:46 GMT
I for one will not pander to this blatant bribery. Oh, come on now, 19%!!! Now I just have to find another 99k. Actually it’s 23% pa (assuming it’s a 6 month loan), with a big chunk tax free ! oh yes ... almost forgot ... and it pays back and doesn’t default 
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