michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,706 
Likes: 2,981
|
Post by michaelc on May 5, 2018 14:40:39 GMT
Does anyone have an opinion on this loan?
I dumped 5 figures into a new ISA for MrsC after persuading her it was relatively safe compared to other p2p and offered a lot better return than nothing. She definitely wasn't wanting to select any individual loan and liked the look of the property secured account.
Anyway, no less than about 5 days later (this was mid April ish) I looked to see what it had bought. 141 loans with the highest holding by value suspended! That seems phenomenally bad luck!
I haven't yet looked into detail at the security (some flats in Edinburgh), but hopefully will be enough if it comes to it?
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on May 5, 2018 16:19:38 GMT
Does anyone have an opinion on this loan? I dumped 5 figures into a new ISA for MrsC after persuading her it was relatively safe compared to other p2p and offered a lot better return than nothing. She definitely wasn't wanting to select any individual loan and liked the look of the property secured account. Anyway, no less than about 5 days later (this was mid April ish) I looked to see what it had bought. 141 loans with the highest holding by value suspended! That seems phenomenally bad luck! I haven't yet looked into detail at the security (some flats in Edinburgh), but hopefully will be enough if it comes to it? I'm hopeful. Though the operating profits for the 3 months to Jan 18 are only just over half what they were in 3 months to Oct 17 -company has decent 'Total capital and reserves' of £0.9m -as you say, there are the flats themselves Unclear to me why they can't meet the loan repayments. Will no doubt get more info from AC's promised update by 18 May
|
|
liso
Member of DD Central
Posts: 390 
Likes: 394
|
Post by liso on May 5, 2018 17:56:29 GMT
This looked a safe loan to me too and I invested accordingly, unfortunately!
I live not too far from here and know the area well, and I am puzzled about what has gone wrong, and so quickly.
That said, the security looks ok. A 2 bed flat in the same street sold 4 months ago, asking price 325K.
Similar sales should easily recover our loan, if it came to that.
|
|
|
|
Post by danielbird193 on May 6, 2018 7:35:05 GMT
Yes I'm slightly puzzled by this one as well. Look forward to finding out what the borrower's proposal will be.
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,706
Likes: 2,981
|
Post by michaelc on May 23, 2018 21:50:18 GMT
Hopefully nothing to worry about......
-------------------------------
18th May 2018
Dear Lenders,
Further to our last update, we have been speaking to the director of the company on a regular basis.
We are aware that he is investigating a refinance to repay this loan. However, this remains at an early stage and so we have made the Borrower aware that missed payments need to be covered.
He has pledged to make payment before the end of May to bring down the arrears and so we will monitor this. An amount of interest can be covered from a buffer retained at drawdown but once this is applied, the buffer is exhausted and the loan remains in default.
Alongside current discussions, we will also ask him for proposals to put to lenders in this loan, within the next month. Therefore, we will next update by 18 June 2018.
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on May 24, 2018 8:44:08 GMT
Hopefully nothing to worry about...... ------------------------------- 18th May 2018 Dear Lenders, Further to our last update, we have been speaking to the director of the company on a regular basis. We are aware that he is investigating a refinance to repay this loan. However, this remains at an early stage and so we have made the Borrower aware that missed payments need to be covered. He has pledged to make payment before the end of May to bring down the arrears and so we will monitor this. An amount of interest can be covered from a buffer retained at drawdown but once this is applied, the buffer is exhausted and the loan remains in default. Alongside current discussions, we will also ask him for proposals to put to lenders in this loan, within the next month. Therefore, we will next update by 18 June 2018. Not sure I agree there's nothing to worry about. If all was OK, I doubt we'd see "we will also ask him for proposals to put to lenders in this loan"
|
|
|
|
Post by brightspark on May 24, 2018 11:21:26 GMT
I have invested with AC because they are less opaque that some other platforms of which I can think. That said borrower for 414 has taken liberties with repayments and so far apart from raising with the borrower this issue no serious warning shot has been fired. I have abandoned other platforms - FC, Lendy, FS to name three for similar behaviour and am watching the unfolding AC wind farm saga with concern even though not invested. If AC do not take prompt robust action to bring 414 borrower into line then I shall seriously consider selling off all my AC investments and I have written to them along these lines
. I would invite other investors to threaten likewise. It only takes one or two significant losses in a portfolio to undermine years of careful investment elsewhere. I can do without Irish wind turbine losses, dubious London property loans, powerboats etc etc. I do not want to add loan 414 to this list.
|
|
liso
Member of DD Central
Posts: 390
Likes: 394
|
Post by liso on Aug 15, 2018 15:04:19 GMT
The borrower is now 2 months in arrears. Holiday lets in Edinburgh are extremely busy and at premium prices so I am at a loss to understand why they are unable to meet the repayments.
AC's weak response is not encouraging. It was agreed in mid-July that the borrower would make up all arrears. This has not happened but AC have taken no further action, and their claim that 'the situation is being affected by the holiday period' is ludicrous. The holiday period brings a significant increase in rental income to the borrower!
So where are our repayments?
IMO we, the lenders, are being taken for fools
|
|
empirica
Member of DD Central
Posts: 326
Likes: 235
|
Post by empirica on Aug 15, 2018 15:35:45 GMT
The borrower is now 2 months in arrears. Holiday lets in Edinburgh are extremely busy and at premium prices so I am at a loss to understand why they are unable to meet the repayments. AC's weak response is not encouraging. It was agreed in mid-July that the borrower would make up all arrears. This has not happened but AC have taken no further action, and their claim that 'the situation is being affected by the holiday period' is ludicrous. The holiday period brings a significant increase in rental income to the borrower! So where are our repayments? IMO we, the lenders, are being taken for fools Might it be that the impacted 'situation' being referred to is the progression of the other financier's DD and associated activities related to that refinance rather than the letting of the holiday flats?
|
|
loadsahope
Member of DD Central
Posts: 84
Likes: 44
|
Post by loadsahope on Aug 15, 2018 18:12:44 GMT
The borrower is now 2 months in arrears. Holiday lets in Edinburgh are extremely busy and at premium prices so I am at a loss to understand why they are unable to meet the repayments. AC's weak response is not encouraging. It was agreed in mid-July that the borrower would make up all arrears. This has not happened but AC have taken no further action, and their claim that 'the situation is being affected by the holiday period' is ludicrous. The holiday period brings a significant increase in rental income to the borrower! So where are our repayments? IMO we, the lenders, are being taken for fools Might it be that the impacted 'situation' being referred to is the progression of the other financier's DD and associated activities related to that refinance rather than the letting of the holiday flats?
That's how I interpreted it.
|
|
liso
Member of DD Central
Posts: 390
Likes: 394
|
Post by liso on Aug 15, 2018 19:43:31 GMT
Might it be that the impacted 'situation' being referred to is the progression of the other financier's DD and associated activities related to that refinance rather than the letting of the holiday flats?
That's how I interpreted it. Yes I agree, but that is the source of my annoyance. AC have chosen to interpret the 'holiday situation' to favour the borrower, and are giving it as a reason for us to extend leniency and further forbearance while the borrower pursues refinance. Given that Edinburgh holiday landlords are achieving full occupancy and very high rental incomes, an alternative would be for AC to interpret the 'holiday situation' to favour the lenders, and press the borrower much harder to comply with their loan agreement. Edinburgh rental income is at its highest at this time of year so, as I said previously, I cannot understand why the borrower is unable to meet their repayments.
|
|
dead-money
Rocket to the Moon
Posts: 746
Likes: 654
|
Post by dead-money on Aug 20, 2018 21:07:41 GMT
My main source of annoyance, (apart from having 10% of original Property account investment stuck in this loan), is that the arrears and delay have being going on for many months, without any apparent progress. 'Holiday season' is a poor excuse for slippage!
|
|
liso
Member of DD Central
Posts: 390
Likes: 394
|
Post by liso on Dec 21, 2018 18:55:20 GMT
Repaid
|
|
|
|
Post by df on Dec 21, 2018 19:17:11 GMT
Good news 
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Dec 22, 2018 9:25:59 GMT
More accurate to say repaying, as the money hasn't been repaid yet.
|
|
