upland
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Post by upland on Mar 16, 2018 9:30:49 GMT
My guess is that this is a sort of favour to a business contact. I detect a certain concern about this move from this forum and I hold those concerns too. Agreed.
I'd also like UB to concentrate on bling but I can see that this opportunity has come from one of their jewellery borrowers so perhaps we shouldn't start thinking that this is the start of a headlong shift into property in the way we saw with Collateral.
I might take a modest slice to do my bit to help.
I did start to wonder what would happen if they had to enforce the charge , it would not be good for business. I too would be happy to take a bit in order to help but most of my loans with Unbolted are pretty small so a meaningful stake is very unlikely.
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elliotn
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Post by elliotn on Mar 16, 2018 9:45:46 GMT
I’ve just divested from Unb so haven’t looked but out of interest - is it still bullet, any indication for accrued interest on SM?
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Post by Badly Drawn Stickman on Mar 16, 2018 9:59:44 GMT
Agreed.
I'd also like UB to concentrate on bling but I can see that this opportunity has come from one of their jewellery borrowers so perhaps we shouldn't start thinking that this is the start of a headlong shift into property in the way we saw with Collateral.
I might take a modest slice to do my bit to help.
I did start to wonder what would happen if they had to enforce the charge , it would not be good for business. I too would be happy to take a bit in order to help but most of my loans with Unbolted are pretty small so a meaningful stake is very unlikely. Fairly sure my role is not to help Unbolted. In my case it has made me question some of the existing loans, entirely my own fault I had paid very little attention to what the loans were for, or to whom. I only have a modest sum invested and was treating it purely as fund and forget, might need to review that position.
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dermot
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Post by dermot on Mar 16, 2018 10:22:45 GMT
Since this is an existing borrower, I might go in for a hundred quid but no more.
That said, I've got a solid 5 figures in UB and would be very concerned indeed if this was the beginning of a shift to property.
While a second charge is not a very auspicious start, it is at least to be paid monthly (both interest and capital, if I read the terms correctly) and a 5 year fire and forget is attractive.
Not convinced that 10% is an appropriate reward for a 2nd charge, however and, as is my ever-growing concern with property l loans, I don't trust valuations worth a damn!
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jimc99
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Post by jimc99 on Mar 16, 2018 10:47:11 GMT
I was unpleasantly surprised to find I had so much lent out to this one individual. In future it would be good if Unbolted could show details of existing loans made to individuals seeking further unsecured loans. Also perhaps the autobid amount could be used as a limit for investment in the same borrower? Meanwhile I have reset my auto invest to zero for future unsecured loans to avoid this situation ocuring again. Not the result Unbolted intended I guess. There are no unsecured loans on unbolted. Do you mean loans that aren't covered by the provision fund? I queried this with UB, this is there reply... Hi All loans are secured by watches that are held in our possession. None of the loans are unsecured. The loans are however not covered by the Provision Trust, as we have recourse to the borrower in the event of default and if sale of watches do not cover full loan (watch prices collapse, etc.). Kind Regards, .............. Strange that these loans are not covered by the Provision Trust when they seem identical to other loans that are! WHY I ask? The favour to a mate theory seems likely! Complete load of xx@#*&'s it seems to me!
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Nomad
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Post by Nomad on Mar 16, 2018 11:57:42 GMT
I don't want to invest in this but I'm currently using auto-lend. Would this come under a "bespoke" loan? So do I need to turn off auto-lend to avoid investing in this? From the website - 'Bespoke Loans' are restricted to the following two categories of loans: business loans with recourse to the company and a director's guarantee, and auctions financing loans with our auction partners such as F**** A******* where the loan amount is less than 40% of the low auction estimate. Your autolend instructions will not be used to finance any other type of loan.
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peteuk
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Post by peteuk on Mar 16, 2018 11:59:51 GMT
What worries me is that the loan is going to be paid directly to the borrower , whats to say he doesn't use it somewere else. I'm out
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andy1
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Post by andy1 on Mar 16, 2018 12:05:16 GMT
I also don't want a 2nd charge on a property loan at 10% and like some others I'm also a bit taken aback to discover that about 20% - 25% of my lending on this platform is to this one guy. It's a bit of a can of worms IMO.
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Ukmikk
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Post by Ukmikk on Mar 16, 2018 12:07:12 GMT
What worries me is that the loan is going to be paid directly to the borrower , whats to say he doesn't use it somewere else. I'm out "The funds will be paid directly to the lender to release the charge. "
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Ukmikk
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Post by Ukmikk on Mar 16, 2018 12:17:16 GMT
I also don't want a 2nd charge on a property loan at 10% and like some others I'm also a bit taken aback to discover that about 20% - 25% of my lending on this platform is to this one guy. It's a bit of a can of worms IMO. I'm not too worried about the loans all being to one guy, as they are all secured, IF the valuations of the collateral were done independently of the borrower. Does anyone know if this is the case? I'm not too keen on the property loan at this stage though, not on the terms offered anyway.
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Post by skint4achange on Mar 16, 2018 13:23:43 GMT
Not convinced that 10% is an appropriate reward for a 2nd charge, however and, as is my ever-growing concern with property l loans, I don't trust valuations worth a damn! I live in this area and TBH, a house worth in excess of £450k is pretty much the norm (Provided it is in the nicer areas of Fareham!).
The main concern for me is the fact that the borrower defaulted on a credit card and then made an arrangement!! An IVA by any other name from my point of view.
Anybody in the business that this couple are in that lets themselves become a credit risk are either stupid or a real risk in my view. I have now turned off bespoke loan "Auto lend" too. I never saw the build up of loans to one person because we don't get to see the lenders details. I think UNB may regret putting this on the platform in the first place.
I understand people not wanting UNB to move into this kind of market, I was shocked to see this on the landing page. I won't be taking up any of the offering as I can get a higher APR for loaning to dodgy individuals on other platforms.
However, that all said, UNB is still one of my favourite platforms.
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Post by investor1925 on Mar 16, 2018 13:24:40 GMT
OK, so this chap has a £225k mortgage on his house, not a problem. He also has £248k worth of loans on UB, not a problem. Now he wants to increase the "mortgage" on his house by another £92k @ 10%+ ouch
That's a total loan of £568k. Not a problem provided he can keep his head above water & pay it all down.
What really worries me, though, is him defaulting on his credit card & getting shafted for it. I've NEVER not paid my credit card off completely every month.
Incidentally, if I owned half a million's worth of bling & needed £248k to play with for another project, the last thing I would do is borrow it at 10%+, I would be selling some of it.
It takes all sorts I suppose.
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IFISAcava
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Post by IFISAcava on Mar 16, 2018 14:10:18 GMT
Not convinced that 10% is an appropriate reward for a 2nd charge, however and, as is my ever-growing concern with property l loans, I don't trust valuations worth a damn! I live in this area and TBH, a house worth in excess of £450k is pretty much the norm (Provided it is in the nicer areas of Fareham!).
The main concern for me is the fact that the borrower defaulted on a credit card and then made an arrangement!! An IVA by any other name from my point of view.
Anybody in the business that this couple are in that lets themselves become a credit risk are either stupid or a real risk in my view. I have now turned off bespoke loan "Auto lend" too. I never saw the build up of loans to one person because we don't get to see the lenders details. I think UNB may regret putting this on the platform in the first place.
I understand people not wanting UNB to move into this kind of market, I was shocked to see this on the landing page. I won't be taking up any of the offering as I can get a higher APR for loaning to dodgy individuals on other platforms.
However, that all said, UNB is still one of my favourite platforms.
10% for a 60% LTV residential property is competitive. Where can you get better?
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rgog
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Post by rgog on Mar 16, 2018 14:16:39 GMT
Agree with michaelc & Esmeralda re auto lend I want to know as well. As a general comment I would say the same as I said when Coll started mixing pawn loans and property: 1 they are very different beasts and I question if the platform has either the expertise necessary to DD such loans or the specialist skills to recover in default. 2 I invested with Unbolted for diversification (indeed I was in process of closing down Coll and transferring) if they follow down the Collateral route I will leave. 3 There are a lot of property platforms out there so a lot of competition. 4 10% on a secondary charge no way, 10% on a secondary charge given the level of indebtedness on a platform without the relevant expertise? You are having a laugh!
Agree about valuations in the property market, they are very questionable.
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rzys
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Post by rzys on Mar 16, 2018 14:31:55 GMT
I will be saying no thanks as well.
As well as the risk/reward profile, I don't want to be tied up for 5 years in a platform with an untested SM.
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