cb25
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Post by cb25 on May 3, 2018 12:37:30 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. Pipeline currently shows 11 @ 6% 7 @ 6.5% 18 @ 7% 1 @ 7.35% 7 @ 7.5% 12 @ 8% 1 @ 8.5% 2 @ 9%
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happy
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Post by happy on May 3, 2018 20:51:24 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. Pipeline currently shows 11 @ 6% 7 @ 6.5% 18 @ 7% 1 @ 7.35% 7 @ 7.5% 12 @ 8% 1 @ 8.5% 2 @ 9% So around 25% of the pipeline is 8% or higher. That certainly feels like an uptick in rates compar ed to recent months. Taking a look at the loan book shows the last 50 live loans had only 9 loans at 8% (if you ignore the tiny little 9% #708) so perhaps the tide is turning in our favour as Stuart said.
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cb25
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Post by cb25 on May 4, 2018 9:26:27 GMT
Pipeline currently shows 11 @ 6% 7 @ 6.5% 18 @ 7% 1 @ 7.35% 7 @ 7.5% 12 @ 8% 1 @ 8.5% 2 @ 9% So around 25% of the pipeline is 8% or higher. That certainly feels like an uptick in rates compar ed to recent months. Taking a look at the loan book shows the last 50 live loans had only 9 loans at 8% (if you ignore the tiny little 9% #708) so perhaps the tide is turning in our favour as Stuart said.Weighting the 59 pipeline loans with rates shown by loan amount gives an average of 7.59%
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Post by Deleted on May 4, 2018 9:39:44 GMT
Most of my funds in AC are in the MLA but the amount has been steadily declining over the past year as interest rates have fallen. I will be pleased if I can start investing again. Can AC/Stuart advise why rates are now to be increased - is it a trend or AC taking a smaller cut? It's a trend. AC have always taken broadly the same margin. Is that as a percentage of the loan or as a percentage of a percentage of difference between the lend rate and the borrow rate? An equation might help as the term "Margin" is open to missunderstanding?
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Post by stuartassetzcapital on May 4, 2018 11:40:43 GMT
We take a standard % of the loan which is linked to the work required to a greater degree. Development loans require a higher % for the continuous work through the loan related to checking each drawdown etc whereas a 5 year loan is a lower %. So for example a 9.9% commercial mortgage would have a very typical 0.9% servicing fee per annum and a 9% MLA rate. Equally if it was a 7.9% borrower rate that would also have a 0.9% servicing fee giving an MLA rate of 7%. I hope that helps.
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Post by Ton ⓉⓞⓃ on May 4, 2018 13:18:24 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. To me, on the face of it, a general interest rate rise sounds like AC is thinking/seeing more risk out there in the UK economy now, is that fair? Or is it that BoE interest rates are expected one or more rises this year. I've had a quick look at the AC blog to see if there were any pointers there, can't see anything obvious.
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cb25
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Post by cb25 on May 4, 2018 13:28:19 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. To me, on the face of it, a general interest rate rise sounds like AC is thinking/seeing more risk out there in the UK economy now, is that fair? Or is it that BoE interest rates are expected one or more rises this year. I've had a quick look at the AC blog to see if there were any pointers there, can't see anything obvious. I'm unconvinced about any general rate rise in AC -the Live loan book shows an average of 8.16% (*) -the Pipeline loan book shows an average of 7.59% in each case loans weighted by amount (*) loans with rates of 0%, range rates '10-15%', 68% excluded, last one because it seems massively atypical.
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Post by stuartassetzcapital on May 4, 2018 14:04:45 GMT
A number of loans in the pipeline are popping out with older (and lower) agreed rates as can be seen above but the overall pipeline getting close to draw (not necessarily visible publicly yet) is going higher in rate. Pretty much nothing new is being agreed or in fact needing to be agreed below 8% MLA I am advised. To me, on the face of it, a general interest rate rise sounds like AC is thinking/seeing more risk out there in the UK economy now, is that fair? Or is it that BoE interest rates are expected one or more rises this year. I've had a quick look at the AC blog to see if there were any pointers there, can't see anything obvious. If we have too many enquiries, see too much business and therefore deduce pricing could go higher then we do this and that’s what’s happening at present. We offer competitive loan pricing and have moved back (up) a little recently and it will, if patient, start to come through.. It’s not about increased risk. Since the beginning we have often had a ‘premium’ on top of risk pricing if that balances the supply demand equation. We do not go the other way and reduce pricing with too much money on offer other than considering reducing any ‘premium’ on top of ‘base’ pricing.
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sl75
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Post by sl75 on May 10, 2018 20:23:54 GMT
Yes some auto/quick invest functions in MLA are due extremely soon and chris will confirm when - we are talking working days to a few weeks at most from what I hear... Any further update on an ETA for this? Funds are currently accumulating in my MLA, and although I'd happily adjust my minimum target interest rate, and also increase the target investment amount on most of the loans exceeding this new minimum, I can't see a way to do it without either spending hours repeatedly clicking to open hundreds of different loan pages pressing investment buttons and typing amounts (interspersed with mental arithmetic to get the additional investment amount necessary to reach the target investment for loans where I already have some exposure), or writing a bot to do the clicking and calculations for me. Given the amount of time either would take, I'd sooner withdraw the surplus and invest it elsewhere, but can hang on for a bit if you're REALLY going to provide such a facility by the end of May.
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Post by chris on May 11, 2018 7:31:53 GMT
sl75 - Should definitely be live within the first half of June. We're juggling a number of priorities but this is amongst the highest.
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Post by mint on Sept 6, 2018 18:34:28 GMT
Getting lot of marketing bumpf from AC recently, one pointing out they’ve got masses of loans with loads on the SM, I also recollect reading here about their increasing use of underwriters. What with all their recent bonus rate offers – is this a sign they're struggling for funds and a cause for concern?
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Post by stuartassetzcapital on Sept 6, 2018 19:47:01 GMT
Just high growth. £210m lent last year, maybe double that this year. Watch out for Tech Track 100 in the Sunday Times this weekend.
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rick24
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Post by rick24 on Sept 6, 2018 20:03:26 GMT
Just high growth. £210m lent last year, maybe double that this year. Watch out for Tech Track 100 in the Sunday Times this weekend. Good to know. The marketing mails were making me nervous!
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Post by stuartassetzcapital on Sept 6, 2018 20:14:53 GMT
We lent around 40% on top of the whole UK banking system's new net (of redemptions etc) lending in the first half of this year according to Bank of England stats. Net lending is how much your loan book grew after any borrower repayments, so how much new money was out in the economy supporting new jobs and growth.
Banks' new net lending in the first 6 months was only £355m and ours was £143m. We have had challenges along the way and will continue to do so, as lending is a tough business, but investors have also earned over £50m of gross interest now too and we will continue to do our best for you all.
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rookey123
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Post by rookey123 on Sept 6, 2018 20:24:59 GMT
Best P2P company I invest in by a mile. Keep it up Stuart.
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