Wood Green Development Loan

One is starting to get the feeling that there's a theme developing here. Maybe we should start calling ourselves the 10%ters club on account of the majority of the last few loans all being @ 10%

I tend to agree - I quite like these development loans (which are gradually drawn down) with relatively low LTV.  Would just be nice to see it back up at 12%, but for this loan at max 60%, I think the rate is pretty reasonable.  I find it is worth remembering that only a portion of your cash is actually at risk (due to gradual draw down) - but it's still earning the full rate for the life of the loan.

I think the 250k is about right, I can't understand where the higher valuations come from on the little details we have. (Looking at google maps even 250k looks generous, but I'm no expert.)

I think there's ample room and reason for the loan to be 'extended'.

It's interesting having the original designer also give us monthly valuations.

I see 'Z' has asked a questioned about what will happen if the ltv covenant is breached (Q&A). It'll be useful for other similar deals. I'm guessing it's a tool similar to PG's.

I'm intrigued as to who will be paid the first 72k considering the Borrower has born all the costs to date.

Having just re-read what I've written I see these are ramblings of someone who should be sleeping.

Seems like that to me too (either that, or platform competition is hotting up, squeezing rates down?  You'll notice SS is very quiet - I suspect due to them feeling the heat of competition - so far all their loans are at a lender rate of 12% across the board, but I suspect that is proving tough keep doing).

Is there a way of breaking the deadlock on AC?  Maybe AC should try an experiment with a 12% loan and no immediate underwriting, and see how it fills at preview stage?  I daren't mention cash-back incentives :-)

The underwriters seem to have very deep pockets.  I understand it's commercially sensitive, but I'd be very interested to hear how the underwriter deals are structured.

You may also find that AC have made a strategic decision that in order to grow fast enough to meet their targets, they simply can't get away from underwriting.  I recall that on a couple of loans, it has been suggested that guaranteed underwriting is a major reason for them choosing AC over other p2p platforms.  In that regard, it helps AC be much more mainstream.

Presuming AC know what their underwriters will support and what they won't, there's nothing to stop AC from promising borrowers that a loan will be underwritten if necessary, and still trying to fund the loan without engaging the underwriters.  I suspect that's why so many auctions start without any visible underwriting -- AC are hoping they won't need to call in the underwriters -- and the underwriting appears at the last minute if it's needed.

It's a garage as in the building I keep my car in, or where most other people keep their junk.
The address given on the credit report covers what is a semi-detached house (possinly converted to flats) with an adjacent garage.  The plan is to replace the garage with a tiddly narrow 1 bed house,slotted in between the existing house and the substation.  The details can be found on Haringey's planning website.

(I think I've fixed the above so that the quotes are attributed to the right people.)

While I agree that Lendy make the boat loans at much higher rates to the borrowers than 12%, I suspect that doesn't apply to their property bridging loans.  The boat lending effectively is a pawnbroking arrangement.  There are significant costs involved in arranging the safekeeping of the security, and the loans can be paid off at any time without penalty.  SS/Lendy have a big enough margin that they can afford to continue to pay investors 12%, and the options for boat owners wanting a short-term loan probably are quite limited.  So I suspect that side of the business is fine except for the shortage of people wanting loans.

The property bridging loans are in a lot more competitive market.  I don't expect that Lendy can charge the sort of APRs they can for the boat loans, so their margin would be a lot smaller -- but they also don't have a problem with storing the security.  And that's not to say that the margins available aren't enough to support a 12% rate to investors.  On one of the currently available AC loans, the borrower seems to be paying 15.6% interest. (Investors will be getting 10%.)  I hope that SS can continue to offer its investors 12% on all loans, but only time will tell.  If they can do that, and if they can develop a wider selection of loans available at any one time, then I think that would put pressure on AC's investor-attracting side.