mikes1531
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Post by mikes1531 on Jan 2, 2018 17:01:34 GMT
92**77**36 Part of a 2nd charge (of £600K ) @ 37.50 % LTV completed after 158 days. I really don't understand what FS are doing with these loans, especially as FS have chosen not to add any updates at this time to any of them. The £600k 2nd charge facility consisted of four tranches. The borrower made a partial repayment. However, rather than treating this as a partial repayment of each of the four tranches FS repaid one of the tranches completely, leaving the other tranches untouched and outstanding. That strikes me as rather arbitrary, and not particularly fair to the investors in this facility. Some of those invested in the repaid tranche might have wanted to stay in this loan, and some of the investors in the continuing tranches might have wanted to exit the loan, but nobody was given an opportunity to express a preference. If FS didn't want to organise four separate partial repayments, why didn't they repay all the tranches in the facility and consolidate the remaining loan into a smaller replacement facility? That would at least have allowed the existing investors to stay in or get out as they wished. A further mystery to me is why the borrower chose to repay some of the 2nd charge loan instead of repaying some of the 3rd charge loan, especially as they're paying a higher interest rate on a £75k tranche of that? Perhaps fundingsecure would care to explain what's going on here?
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sarahcount
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Post by sarahcount on Jan 2, 2018 20:44:51 GMT
I agree that this is all very strange - but I must voice my opinion against consolidating loans. I've had good loans pulled from under my feet before when there's been a partial repayment and FS have created a new consolidated loan. You only need to be away from your computer at the wrong time and all your hard work building up a holding over many months can get wiped away in seconds. This is even more frustrating if you've been prepared to pay a premium to get into a loan only to find yourself dumped on the pavement. Even if you are there at the appointed time there's the risk that FS will decide to release a popular loan without any bid limits and where remarkably their mates seem to always get in first. Much better to do a partial repayment. Anyone wanting to get into or out of a loan always has the option of the SM anyway.
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mikes1531
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Post by mikes1531 on Jan 2, 2018 23:14:52 GMT
I agree that this is all very strange - but I must voice my opinion against consolidating loans. I've had good loans pulled from under my feet before when there's been a partial repayment and FS have created a new consolidated loan. You only need to be away from your computer at the wrong time and all your hard work building up a holding over many months can get wiped away in seconds. This is even more frustrating if you've been prepared to pay a premium to get into a loan only to find yourself dumped on the pavement. Even if you are there at the appointed time there's the risk that FS will decide to release a popular loan without any bid limits and where remarkably their mates seem to always get in first. Much better to do a partial repayment. Anyone wanting to get into or out of a loan always has the option of the SM anyway. I take the point about the problems caused by consolidating loans where FS don't allow investors wanting to stay in a loan to stay in automatically. ISTM that they could get around that problem most of the time with a bit of system improvement. In this case, with a £600k facility, they could have checked the number of renewal instructions set, and probably would have found less than £450k to be renewed -- it would be unusual for there to be a renewal rate as high as 75% on a £600k loan -- so they could have rolled those investments forward into the replacement facility, and offered the remainder to new investors. I would take exception to part of the last sentence quoted above, though. While the SM does provide an exit option for most investors, the tax treatment of FS SM purchases means it only makes sense for those wanting to get into a loan if they are non-taxpayers, or are investing via a business or an ISA.
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kermie
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Post by kermie on Jan 2, 2018 23:33:26 GMT
If all tranches (in the second charge, say) rank equally in a default situation, then they should rank equally when a partial repayment is made in a non-default situation too. Seems only fair.
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rogerthat
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Post by rogerthat on Jan 3, 2018 2:23:13 GMT
If all tranches (in the second charge, say) rank equally in a default situation, then they should rank equally when a partial repayment is made in a non-default situation too. Seems only fair. Exactly so..couldn't agree more
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woodland
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Post by woodland on Feb 3, 2018 17:13:14 GMT
Part of the 2nd loan is coming up for renewal on Monday. Not invested in this one before but can see previous offerings were taken up v quickly. The 1st loan was way back in 2014 - the borrower must be making a fantastic return on wherever he is using these funds to continue using such an expensive lending source. Does anyone who has followed this one more closely over time have a view on this one going forward? I am tempt to have a nibble if I can get enough.
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blender
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Post by blender on Feb 3, 2018 17:23:13 GMT
If all tranches (in the second charge, say) rank equally in a default situation, then they should rank equally when a partial repayment is made in a non-default situation too. Seems only fair. Over at FC, at least in the old days, they would not distribute a part payment, but would wait to see what happened. If the payment was made full before the next tranche payment was due, then it might be distributed. But more likely it would all be held until the loan was defaulted, and then distributed as recoveries.
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r1200gs
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Post by r1200gs on Feb 5, 2018 9:38:18 GMT
Part of the 2nd loan is coming up for renewal on Monday. Not invested in this one before but can see previous offerings were taken up v quickly. The 1st loan was way back in 2014 - the borrower must be making a fantastic return on wherever he is using these funds to continue using such an expensive lending source. Does anyone who has followed this one more closely over time have a view on this one going forward? I am tempt to have a nibble if I can get enough. I'm tempted too, 15 percent on offer is always tempting. My concern is that this will default and the security will be difficult and time consuming to sell. Years. The valuation says five million and possibly more if they took the time to evaluate each item as due to sheer number of items a detailed valuation was not done. But then possibly less. I'm also concerned that valuations of specialist items by enthusiasts of those items are likely to contain an element of enthusiasm over realism. I suspect Mr H of the ILAB who gave the valuation was in cloud nine when he saw this library, but the rest of us, not so much. Dusty old books. As we don't know what the library contains (books, you fool!) then it's difficult to try and find comparable prices and again, who's going to buy the whole thing? How many people are willing and able to fork out five million for an antique Italian library? It would also appear that the valuation was commissioned by the owners of the library and not FS, and that is not to be used for any purpose other than insurance and replacement. Here it is being used to reassure P2P lenders. I also suspect that Mr H may have taken individual items and valued them at what he would ask if they were sitting on the shelves of his shop, but this would be a distressed bulk sale that would bring a fraction of his valuation. Of course, I can't be sure. The risk is most definitely a very long and drawn out disposal of the asset bit by bit, years, and that it won't raise anything like £5 million.
All just my opinion.
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rogerthat
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Post by rogerthat on Feb 5, 2018 10:22:51 GMT
Part of the 2nd loan is coming up for renewal on Monday. Not invested in this one before but can see previous offerings were taken up v quickly. The 1st loan was way back in 2014 - the borrower must be making a fantastic return on wherever he is using these funds to continue using such an expensive lending source. Does anyone who has followed this one more closely over time have a view on this one going forward? I am tempt to have a nibble if I can get enough. I'm tempted too, 15 percent on offer is always tempting. My concern is that this will default and the security will be difficult and time consuming to sell. Years. The valuation says five million and possibly more if they took the time to evaluate each item as due to sheer number of items a detailed valuation was not done. But then possibly less. I'm also concerned that valuations of specialist items by enthusiasts of those items are likely to contain an element of enthusiasm over realism. I suspect Mr H of the ILAB who gave the valuation was in cloud nine when he saw this library, but the rest of us, not so much. Dusty old books. As we don't know what the library contains (books, you fool!) then it's difficult to try and find comparable prices and again, who's going to buy the whole thing? How many people are willing and able to fork out five million for an antique Italian library? It would also appear that the valuation was commissioned by the owners of the library and not FS, and that is not to be used for any purpose other than insurance and replacement. Here it is being used to reassure P2P lenders. I also suspect that Mr H may have taken individual items and valued them at what he would ask if they were sitting on the shelves of his shop, but this would be a distressed bulk sale that would bring a fraction of his valuation. Of course, I can't be sure. The risk is most definitely a very long and drawn out disposal of the asset bit by bit, years, and that it won't raise anything like £5 million.
All just my opinion. All very sound and sensible comment..im reluctant to say as I woke up this morning with the intention of throwing a decent wedge at this because I like this loan...ive already got a reasonable investment in 4 others..but I cant counter outright all your reasoned opinion..there's some very good points made. As Woodland pointed out (above) what on earth must this borrower have paid servicing this loan since 2014 to keep going like this. My crystal ball isn't actually playing ball and if it was, would I be in this at all but then one could ask that of every loan on the platform. Sadly some of us have found out to our cost what that answer is..btw the valuation being used by FS is £3m (not £5m)
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rogerthat
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Post by rogerthat on Feb 5, 2018 11:03:11 GMT
What happened ?...was it fully subscribed by roll overs ?...never saw it appear at all on the available list ?
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rs
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Post by rs on Feb 5, 2018 11:06:12 GMT
What happened ?...was it fully subscribed by roll overs ?...never saw it appear at all on the available list ? There was a problem with the website I think as I saw it about a minute late and it was all gone. The gleneagles loan showed up on time at 11.00 for me but for some reason the Italian books didn't show up on the website at 11.00am!
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pier2pier
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Post by pier2pier on Feb 5, 2018 11:07:13 GMT
was a little late logging in, thought it had not appeared, then realised all had gone
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rogerthat
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Post by rogerthat on Feb 5, 2018 11:09:58 GMT
was a little late logging in, thought it had not appeared, then realised all had gone Well I was on the case within 2seconds and to my eyes it never listed so I can only assume it was secured by roll overs...or bots
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lucky
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Post by lucky on Feb 5, 2018 11:16:26 GMT
was a little late logging in, thought it had not appeared, then realised all had gone Well I was on the case within 2seconds and to my eyes it never listed so I can only assume it was secured by roll overs...or bots
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rogerthat
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Post by rogerthat on Feb 5, 2018 11:24:27 GMT
Hello...anybody there ?
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