j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188 
Likes: 540
|
Post by j on Aug 19, 2014 15:49:38 GMT
Another turbine one, £560k, 9.75% for 36 months, ltv 67%
PS forgot to add that this is still in 'upcoming loan' stage!
|
|
|
|
Post by Ton ⓉⓞⓃ on Sept 3, 2014 14:16:11 GMT
Another turbine one, £560k, 9.75% for 36 months, ltv 67% PS forgot to add that this is still in 'upcoming loan' stage! Extended by a day and 1 or 2 hours. 71% filled in total.
|
|
|
|
Post by bracknellboy on Sept 3, 2014 14:34:33 GMT
so why isn't this one filling ? Less than 6% filled by user bids. Has the lender community had their fill of WTs ? Or is this just reflective of retail lenders having abandoned participation in initial auctions in preference to the aftermarket ?
Surely there are enough people out their with Shadow Accounts to account for me than 6% of the loan.
Bit bemused.
|
|
|
|
Post by batchoy on Sept 3, 2014 14:52:28 GMT
so why isn't this one filling ? Less than 6% filled by user bids. Has the lender community had their fill of WTs ? Or is this just reflective of retail lenders having abandoned participation in initial auctions in preference to the aftermarket ? Surely there are enough people out their with Shadow Accounts to account for me than 6% of the loan. Bit bemused. I have a bit in on a shadow bid, but my shadow account is pretty much used up pending draw down of outstanding accepted shadow bids, I have a small amount of cash in my account to cover any of the immediate requests for payment of shadow bids (I don't use go-cardless and it takes 2-3 days for a BACs payment to appear), but primarily I am waiting on several loans to make final payment before shifting across more cash.
|
|
|
|
Post by jackpease on Sept 3, 2014 15:05:30 GMT
I don't think it is rational to bid any more - even with shadow accounts - so i don't think it's a reflection on the strength or otherwise of the offers.
Most of my five figure portfolio was built up in the early days through bidding but i got fed up with the drawdown times. Be bemused not!
Jack P
|
|
|
|
Post by bracknellboy on Sept 3, 2014 16:23:26 GMT
I don't think it is rational to bid any more - even with shadow accounts - so i don't think it's a reflection on the strength or otherwise of the offers. Most of my five figure portfolio was built up in the early days through bidding but i got fed up with the drawdown times. Be bemused not! Jack P I agree that at one level it is entirely irrational unless it is not an underwritten loan (small loan). However I can't help but think that lenders withdrawl from the primary market - esp. in the case of lenders who have the ability to use shadow bids to mitigate impact of drawdown process - is in the long run not helping the platform or lenders. The more AC have to assume 100% underwriting requirement, the lower the margin available to pass on to retail lenders, and the real risk that AC has to delay bringing loans forward until they know they have sufficient underwriting capacity. Of course if their retail lender base was substantially greater then presumably the backlog of underwriter parts on the AM would clear up quicker releasing some of the pressure on funding new loans.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Sept 3, 2014 16:36:51 GMT
There must be underwriting arranged or being arranged for the remainder if the loan has only been extended by a day
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Sept 3, 2014 16:38:56 GMT
I don't think it is rational to bid any more - even with shadow accounts - so i don't think it's a reflection on the strength or otherwise of the offers. Most of my five figure portfolio was built up in the early days through bidding but i got fed up with the drawdown times. Be bemused not! Jack P I agree that at one level it is entirely irrational unless it is not an underwritten loan (small loan). However I can't help but think that lenders withdrawl from the primary market - esp. in the case of lenders who have the ability to use shadow bids to mitigate impact of drawdown process - is in the long run not helping the platform or lenders. The more AC have to assume 100% underwriting requirement, the lower the margin available to pass on to retail lenders, and the real risk that AC has to delay bringing loans forward until they know they have sufficient underwriting capacity. Of course if their retail lender base was substantially greater then presumably the backlog of underwriter parts on the AM would clear up quicker releasing some of the pressure on funding new loans. Agree with you but, maybe a small dangling carrot (cash back but either unilateral or reasonably teared to allow all to participate) will resolve a % of this problem. It seems to work quite well for SS who have a smaller lender base than AC
|
|
baz657
Member of DD Central
Posts: 500
Likes: 189
|
Post by baz657 on Sept 3, 2014 16:59:35 GMT
I agree that at one level it is entirely irrational unless it is not an underwritten loan (small loan). However I can't help but think that lenders withdrawl from the primary market - esp. in the case of lenders who have the ability to use shadow bids to mitigate impact of drawdown process - is in the long run not helping the platform or lenders. The more AC have to assume 100% underwriting requirement, the lower the margin available to pass on to retail lenders, and the real risk that AC has to delay bringing loans forward until they know they have sufficient underwriting capacity. Of course if their retail lender base was substantially greater then presumably the backlog of underwriter parts on the AM would clear up quicker releasing some of the pressure on funding new loans. I would agree with you but my current situation has £3200 already on shadow bids (out of £4000 maximum) and £1400 on paid up front accepted bids. That's over £4000 that has been effectively sitting idle for the best part of two months. Yet, if I wait and buy on the AM there is no idle time. That could be worth 2% or more overall, or in reality I'd be earning the stated interest level from day one and not taking up to a couple of % off to give a truer picture. If the dead time for bids, both real and shadow, were a maximum of two weeks, I wouldn't be getting even close to my maximum levels but currently I've got more "in the wind" on AC earning me nothing than my total worth on FC.
|
|
|
|
Post by bracknellboy on Sept 3, 2014 17:14:01 GMT
I would agree with you but my current situation has £3200 already on shadow bids (out of £4000 maximum) and £1400 on paid up front accepted bids. That's over £4000 that has been effectively sitting idle for the best part of two months. Yet, if I wait and buy on the AM there is no idle time. That could be worth 2% or more overall, or in reality I'd be earning the stated interest level from day one and not taking up to a couple of % off to give a truer picture. ... Agree with real money, but shadow bids are not 'sitting idle': unless of course you take the view that you still have to cover that with money you have sitting elsewhere @ sub-optimal rates which you would have otherwise invested somewhere else (e.g. FC) for similar / better returns. It is a good point that a lot of shadow bid accounts are currently maxed: mine is, bar a small headroom I am leaving to allow to move on any small / not underwritten loan that might come up.
|
|
baz657
Member of DD Central
Posts: 500
Likes: 189
|
Post by baz657 on Sept 3, 2014 17:27:42 GMT
Agree with real money, but shadow bids are not 'sitting idle': unless of course you take the view that you still have to cover that with money you have sitting elsewhere @ sub-optimal rates which you would have otherwise invested somewhere else (e.g. FC) for similar / better returns. It is a good point that a lot of shadow bid accounts are currently maxed: mine is, bar a small headroom I am leaving to allow to move on any small / not underwritten loan that might come up. Unless I want to risk not being able to fulfil my commitments on the shadow account I have to keep those funds pretty rapidly accessible. Rapid access equates to lower returns so yes I allow for that. If I was only relying on various bridging loans paying up to cover the shadows I'd be right up a certain creek having lost both paddles! 
|
|
|
|
Post by Ton ⓉⓞⓃ on Sept 3, 2014 22:59:54 GMT
There must be underwriting arranged or being arranged for the remainder if the loan has only been extended by a day I imagine you're right, but I also imagine that u/wers have a screen similar to (retail) Lenders and they can decide which loans to plump for and at what rates/commission they get. So in this case I also imagine that there's a small bonus kicking in, u/wer 'cashback' if you will because we're struggling to fill it. That's the only way this makes sense to me. So clearly there must be an increased cost to AC, but I should think this sort of thing is expected by AC and they have a budget for it (u/wer 'cashback'). Indeed they must say to themsleves before every loan goes on site, can we afford to u/w this completely worst come to the worst. With September and holidays ending there's clearly more activity AM and perhaps PrimaryM too, or is the AC marketing starting to show success? After all there's an excellent selection of loans for newbies to take their fill with diversification. If I know I'm gonna buy a certain amount I normally put in a shad-bid for a little less, all things being equal.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Sept 4, 2014 1:41:32 GMT
There must be underwriting arranged or being arranged for the remainder if the loan has only been extended by a day Indeed they must say to themsleves before every loan goes on site, can we afford to u/w this completely worst come to the worst. If obtaining underwriting on this loan was easy, I would have expected AC to have arranged it before the end of the auction period to save them the embarrassment they're having now by being forced to extend the auction. So it looks to me as if either their underwriters are getting maxxed out or possibly less enthusiastic. There are an awful lot of underwriter units on the Aftermarket right now -- approaching £5M -- and a lot of those have been for sale for some time. So barring a sudden increase in retail lenders, the underwriters could be left holding a lot of those units a lot longer than they expected when they agreed to underwrite. So it wouldn't surprise me if underwriters have upped their fees since AC's earlier days when loan units might have been more readily sold. That could explain why AC has waited until the last minute to organise the last slice of underwriting required. I can't wait to see the new AC website as I'm expecting the new AC model to affect the amount of underwriting required.
|
|
|
|
Post by chris on Sept 4, 2014 10:09:02 GMT
mikes1531 - underwriters have holidays too, plus they are aware of any slow down in the aftermarket which can cause them to be more cautious about investing further. Ton ⓉⓞⓃ - aftermarket activity is definitely increasing with yesterday having over £200k of transactions. This is more to do with people returning from holidays, funds freeing up from elsewhere, etc. than our marketing which is a couple of weeks away from kicking in in earnest. We have further short term fixes in the works that'll continue to help free up the aftermarket and increase deal flow before our longer term plans start becoming apparent over the next few weeks which should have an even bigger impact.
|
|
|
|
Post by bracknellboy on Sept 4, 2014 15:01:16 GMT
well its now fully underwritten.
|
|
