11025
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Post by 11025 on May 1, 2019 12:32:05 GMT
Just read this article: linkDifficult times , but in one way this might be the start of a shakeup here . It would be nice to see the mandatory 70%  LTV reined in and some decent valuations that will stand up in a fire sale . |
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Post by df on May 1, 2019 12:51:51 GMT
Just read this article: linkDifficult times , but in one way this might be the start of a shakeup here . It would be nice to see the mandatory 70% LTV reined in and some decent valuations that will stand up in a fire sale . It would be nice, but I think in this scenario we would hardly see any property loans on p2p platforms.
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benaj
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Post by benaj on May 1, 2019 13:08:56 GMT
I like the editor's letter by Suzie, shipping and infrastructure. What are the Chances of government bail out for bridges and motorways when the construction firms collapsed like Carillion?
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on May 1, 2019 19:49:21 GMT
Just read this article: linkDifficult times , but in one way this might be the start of a shakeup here . It would be nice to see the mandatory 70% LTV reined in and some decent valuations that will stand up in a fire sale . It would be nice, but I think in this scenario we would hardly see any property loans on p2p platforms. It might actually get the borrowers to use the P2P properly as old fashioned short term bridging finance . Development loans For longer terms could then be offered at a lower rate if completion on time. All loans could be offered with incentives to repay on time or even early. This would require investors to be more aware of their commitments and liabilities and borrowers able to budget more effectively. Loans may may be reduced but would be of better quality.
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Post by df on May 1, 2019 20:32:37 GMT
It would be nice, but I think in this scenario we would hardly see any property loans on p2p platforms. It might actually get the borrowers to use the P2P properly as old fashioned short term bridging finance . Development loans For longer terms could then be offered at a lower rate if completion on time. All loans could be offered with incentives to repay on time or even early. This would require investors to be more aware of their commitments and liabilities and borrowers able to budget more effectively. Loans may may be reduced but would be of better quality. I was implying that those borrowers won't be able to use p2p if the regulations suggested above were implemented. I don't know the whole picture, but judging from a handful property lending platforms I'm in I can't recall many bridging/development loans that were recovered in full, in some cases advertised LTV turned to be half size of the real value. Other borrowers use banks.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on May 1, 2019 20:39:33 GMT
I’m not aware of any banks giving loans that don’t require capital repayment monthly. Lack of cash flow is the main attraction for borrowers (And main risk to investors).
All lenders rely on accurate valuations and anything that can be done to make these reflect the actual recoverable amounts is to be
encouraged.
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Post by Deleted on May 1, 2019 20:48:40 GMT
Great to see that the article is creating a debate.
The loan in question was a exit finance loan where we were considering to refinance a bank that had provided development financing to a completed residential building.
Regards,
Filip
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11025
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Post by 11025 on May 1, 2019 22:48:48 GMT
Great to see that the article is creating a debate. The loan in question was a exit finance loan where we were considering to refinance a bank that had provided development financing to a completed residential building. Regards, Filip Surely that should be very straightforward ....
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LTV reined in and some decent valuations that will stand up in a fire sale . 
