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Post by investor1925 on Feb 3, 2018 19:07:33 GMT
I've just registered with another P2P platform, mainly for diversification, and when looking through the investments available, one in particular caught my eye.
Basically it was a loan for a site in Scotland & part of the details said it was to pay off an existing loan from another platform. (it actually states that)
I only remember it because it was one of my investments on the previous platform.
It made me wonder how many borrowers simply shift their loans from one platform to another & whether any other investors have noticed any of this happening.
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marka
Member of DD Central
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Post by marka on Feb 4, 2018 6:20:54 GMT
Borrowers will go where they get the best deal. There's nothing to say all their business has to go through one platform. (Do you do all your financial transactions through one bank?)
It would be naive of them to think that platform A will not know about a loan from platform B - especially so if they are secured on the same property/business. That's not to say that there might not be "less than open" platforms that don't make that clear to lenders, but it is very common to see the exit strategy of a loan is to refinance at a lower rate elsewhere, typically when planning permission is attained, or development finished, or some other significant point in a project where the ability to get a better rate arrives.
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Post by jackpease on Feb 4, 2018 7:06:25 GMT
Borrowers will go where they get the best deal. So true! Which makes it puzzling that so many posters criticise platforms for lowering interest rates - an established platform really has little choice if others are dropping their rates. Jack P
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Post by Deleted on Feb 4, 2018 11:17:09 GMT
Borrowers will go where they get the best deal. So true! Which makes it puzzling that so many posters criticise platforms for lowering interest rates - an established platform really has little choice if others are dropping their rates. Jack P I suspect we don't like lowrering rates when the risk stays the same. If a loan gets planning permission then the risk has gone down, if nothing has really changed the lenders don't want the rate to change, and I suspect portals don't want the "difference" to change.
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sarahcount
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Post by sarahcount on Feb 4, 2018 20:33:43 GMT
I've just registered with another P2P platform, mainly for diversification, and when looking through the investments available, one in particular caught my eye. Basically it was a loan for a site in Scotland & part of the details said it was to pay off an existing loan from another platform. (it actually states that) I only remember it because it was one of my investments on the previous platform. It made me wonder how many borrowers simply shift their loans from one platform to another & whether any other investors have noticed any of this happening. Is that the MT loan that was on ABL? Or the COL loan that was on Ly?
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Post by GSV3MIaC on Feb 5, 2018 9:33:58 GMT
Borrowers will go where they get the best deal. There's nothing to say all their business has to go through one platform. (Do you do all your financial transactions through one bank?) It would be naive of them to think that platform A will not know about a loan from platform B - especially so if they are secured on the same property/business. That's not to say that there might not be "less than open" platforms that don't make that clear to lenders, but it is very common to see the exit strategy of a loan is to refinance at a lower rate elsewhere, typically when planning permission is attained, or development finished, or some other significant point in a project where the ability to get a better rate arrives. One suspects, but can't prove it, that sometimes the borrower refinances at a HIGHER rate elsewhere, when their current lender refuses to kick the can any further down the road.
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marka
Member of DD Central
Posts: 224
Likes: 175
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Post by marka on Feb 5, 2018 10:16:09 GMT
Borrowers will go where they get the best deal. There's nothing to say all their business has to go through one platform. (Do you do all your financial transactions through one bank?) It would be naive of them to think that platform A will not know about a loan from platform B - especially so if they are secured on the same property/business. That's not to say that there might not be "less than open" platforms that don't make that clear to lenders, but it is very common to see the exit strategy of a loan is to refinance at a lower rate elsewhere, typically when planning permission is attained, or development finished, or some other significant point in a project where the ability to get a better rate arrives. One suspects, but can't prove it, that sometimes the borrower refinances at a HIGHER rate elsewhere, when their current lender refuses to kick the can any further down the road. Yes that's possible. Also of course in cases where a bridging loan is from one platform but a development loan from a second.
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Post by investor1925 on Feb 5, 2018 15:26:36 GMT
Is that the MT loan that was on ABL? Or the COL loan that was on Ly? The Latter. Incidentally, it was at the same rate (for us) of 12%, but now there is a development loan for a further £60k at 13%
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