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Post by chris on Nov 24, 2013 10:15:10 GMT
All three are fully underwritten and will launch fully tomorrow.
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mark
Posts: 163 
Likes: 166
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Post by mark on Nov 24, 2013 12:40:35 GMT
Thanks for the heads up Chris
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Post by mrclondon on Nov 24, 2013 13:54:21 GMT
Perfect ... something to study on a grey winter Sunday.
I can't help but think that at either 1% or 1.25% per month all three of these are 0.25% pm too low. As six month terms they all have varying degrees of inherent risk on drawdown dead time, early repayment, or late repayment. That only one of the three credit reports discusses late repayment is strange.
That said, I intend to bid on one of these.
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Post by chris on Nov 24, 2013 14:05:02 GMT
I believe that all three are flat fee, so there's no danger of early repayment nullifying interest. Lender's will be paid the full 6 months interest regardless of when within that 6 months the loan repays. As all three are fully underwritten they should also be progressing with the paperwork now anyway, and at least one of the loans is targeting a November drawdown, so the dead time should also be minimised.
I'll double check though and will post a correction if that is not the case.
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Post by bracknellboy on Nov 24, 2013 14:08:10 GMT
That would seem to fit with the statement that the interest is being held back from the loan release.
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Post by andrewholgate on Nov 24, 2013 15:17:17 GMT
Perfect ... something to study on a grey winter Sunday. I can't help but think that at either 1% or 1.25% per month all three of these are 0.25% pm too low. As six month terms they all have varying degrees of inherent risk on drawdown dead time, early repayment, or late repayment. That only one of the three credit reports discusses late repayment is strange. That said, I intend to bid on one of these. The reason for it being 0.25% lower as you say is that the interest will be held on day 1 for the lenders reducing the risk of a default from none payment of interest. Hope that helps. A
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Nov 24, 2013 15:31:08 GMT
I wonder what the returns on "Bring back Morph" will be.  Anyone who likes bananas is a friend of mine. i.imgur.com/78s5NA3.jpg |
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andy2001
Member of DD Central
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Post by andy2001 on Nov 24, 2013 16:07:03 GMT
I believe that all three are flat fee, so there's no danger of early repayment nullifying interest. Lender's will be paid the full 6 months interest regardless of when within that 6 months the loan repays. As all three are fully underwritten they should also be progressing with the paperwork now anyway, and at least one of the loans is targeting a November drawdown, so the dead time should also be minimised. I'll double check though and will post a correction if that is not the case. Being a flat fee what happens if the loan is late in repaying at the end of 6 months.
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Post by chris on Nov 24, 2013 16:18:56 GMT
Being a flat fee what happens if the loan is late in repaying at the end of 6 months. The information I have is that there will then be an increase in the rates paid if the loans are late in repaying. Details will be put on the website in due course.
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bugs4me
Member of DD Central
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Post by bugs4me on Nov 25, 2013 10:40:15 GMT
All three are fully underwritten and will launch fully tomorrow. Not sure what to make of all this as the Bolton Bridging Loan is already at 67% plus and the bidding hasn't officially opened yet. Gold card members probably.
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Post by batchoy on Nov 25, 2013 10:46:06 GMT
Make that 84.21% and 15 minutes to opening time so it looks like I won't even get chance to bid.
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Post by chris on Nov 25, 2013 10:48:20 GMT
It will be a combination of gold club members and HNWs who are called before the auction launches to make sure we can fill it. Being earlier in our growth phase and tending to list larger loans than most other platforms the site can suffer from a chicken and egg issue. People don't want to invest in loans they don't think will fill which in turn makes it look like the loans aren't filling. To combat this we currently manually speak to a number of high net worth lenders to generate interest in each loan and make sure that funding is in place - through a combination of underwriting and normal bidding.
Ideally investors would have faith in our capacity to fill loans and would commit their funds early on to help kick start auctions. With time the lender base will grow and that will end up being the case but for the time being we have to be more pro-active in how we kick start our auctions. This policy is always under review and I would imagine that once we feel it is no longer necessary, particularly for smaller loans, then we'll no longer employ this strategy.
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bugs4me
Member of DD Central
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Post by bugs4me on Nov 25, 2013 10:53:01 GMT
It will be a combination of gold club members and HNWs who are called before the auction launches to make sure we can fill it. Being earlier in our growth phase and tending to list larger loans than most other platforms the site can suffer from a chicken and egg issue. People don't want to invest in loans they don't think will fill which in turn makes it look like the loans aren't filling. To combat this we currently manually speak to a number of high net worth lenders to generate interest in each loan and make sure that funding is in place - through a combination of underwriting and normal bidding. Ideally investors would have faith in our capacity to fill loans and would commit their funds early on to help kick start auctions. With time the lender base will grow and that will end up being the case but for the time being we have to be more pro-active in how we kick start our auctions. This policy is always under review and I would imagine that once we feel it is no longer necessary, particularly for smaller loans, then we'll no longer employ this strategy. Now at 84% and still 10 minutes before it 'officially' starts. Think you may as well pull this one.
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Post by chris on Nov 25, 2013 11:03:57 GMT
It's live and there's still room to bid...
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Post by chris on Nov 25, 2013 11:06:20 GMT
I should add that in this particular instance the borrower also needs to draw down the loan this week so we had to seek more bids to fill the loan than is optimal for lenders who do miss out. There are further opportunities to lend in the other loans later this afternoon and tomorrow.
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