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Post by dan1 on May 24, 2019 8:21:37 GMT
I missed this loan, otherwise engaged but this release probably has me more concerned than any recent development on the platform. With a rate of > 10% and a LTV of < 10% I'd of expected the bid limit to be £1k max, probably more like £500 (or £250 back in the good 'ole days). To me it demonstrates the dearth of active investors compared to 12/24 months ago... My guess is that most active lenders operate standard+IFISA, and some operate accounts for family members (looking at you Godanubis ), not many £10k lots in £115k. Anyone worked out the number of unique investors in this loan?
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criston
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Post by criston on May 24, 2019 8:42:16 GMT
dan1: Exactly my thoughts. All their available loans are dragging on.
I had available cash in my account to use.
Could be the limited time to get money in. I think they only gave around an hours warning. I tried to get more in, but it did not arrive on time.
Maybe that's why they opened it up to large sums.
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r1200gs
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Post by r1200gs on May 24, 2019 10:07:05 GMT
I agree about knocking off the cow jokes, I'm getting cheesed off with them.
Seriously though, I am struggling to see how borrowing money at these rates to buy cows could possibly be a good idea? The farmers are constantly complaining that they are virtually giving milk away.
I might even ask on the farming forum, I'm curious.
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Doc
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Post by Doc on May 24, 2019 10:19:20 GMT
I agree about knocking off the cow jokes, I'm getting cheesed off with them. Seriously though, I am struggling to see how borrowing money at these rates to buy cows could possibly be a good idea? The farmers are constantly complaining that they are virtually giving milk away. I might even ask on the farming forum, I'm curious. It's a short term loan, which will no doubt be quickly refinanced on to a commercial loan given the encumbered farm assets (8% LTV).
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arby
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Post by arby on May 24, 2019 10:25:42 GMT
I agree about knocking off the cow jokes, I'm getting cheesed off with them. Seriously though, I am struggling to see how borrowing money at these rates to buy cows could possibly be a good idea? The farmers are constantly complaining that they are virtually giving milk away. I might even ask on the farming forum, I'm curious. From the 3 farmers I'm close to (2 are family members), they all plead poverty but their lifestyles present a very different message
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 24, 2019 11:05:29 GMT
Who on earth spends money buying cows and seeks finance? FS must be really desperate
Desperate ? 8.8% LTV ?
The whole £115k was sold in under 5 minutes, very low LTV loans are always snapped up quickly, regardless of what the borrower is spending the money on.
And you can always trust an FS Valuation. With your life!
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sarahcount
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Post by sarahcount on May 24, 2019 11:44:35 GMT
I missed this loan, otherwise engaged but this release probably has me more concerned than any recent development on the platform. With a rate of > 10% and a LTV of < 10% I'd of expected the bid limit to be £1k max, probably more like £500 (or £250 back in the good 'ole days). To me it demonstrates the dearth of active investors compared to 12/24 months ago... My guess is that most active lenders operate standard+IFISA, and some operate accounts for family members (looking at you Godanubis ), not many £10k lots in £115k. Anyone worked out the number of unique investors in this loan? I don't agree at all. FS have form for setting bid limits way too high on occasions. They have argued in the past that they need to reward large investors as well as small ones. (I don't agree with them on this but that's been their position)
This loan was fully funded within 5 minutes having only been announced within the hour.
Fortunately I was in position at the appointed time, and had available funds on the platform following the repayment in full of the Brighton house the day before.
This looks like a loan to hold for the duration in my opinion. I know that dairy has issues, NI and Brexit has issues and FS have issues for sure but all in all this platform does seem to beat any of the others for occasionally putting through a loan with a particularly low LTV.
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trium
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Post by trium on May 24, 2019 12:08:03 GMT
Missed it but would have bought. Just on principle I'm not paying the +1% being asked already by flippers this morning (2 of them for the full 5k).
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arby
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Post by arby on May 24, 2019 12:27:10 GMT
Missed it but would have bought. Just on principle I'm not paying the +1% being asked already by flippers this morning (2 of them for the full 5k). While no system is perfect, I always feel a SM range of -2% to 0% is fairer. I don't see much rationale for being able to sell at a premium, particularly when you're already getting the free benefit of selling your tax liability
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p2pstephan
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Post by p2pstephan on May 24, 2019 14:00:54 GMT
Why 11%. With such a good LTV I would expect 9%. Is there a risk / concern we are not aware of which results in FS 11%, rather than FS 9%, or even a standard bank loan. If the farmer pays us all back with interest he deserves more than a pat on the back.
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rogerthat
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Post by rogerthat on May 24, 2019 14:17:46 GMT
Why 11%. With such a good LTV I would expect 9%. Is there a risk / concern we are not aware of which results in FS 11%, rather than FS 9%, or even a standard bank loan. If the farmer pays us all back with interest he deserves more than a pat on the back. Im sure the farmer is grateful for all the 'pats' he can get
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arby
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Post by arby on May 24, 2019 14:29:20 GMT
Why 11%. With such a good LTV I would expect 9%. Is there a risk / concern we are not aware of which results in FS 11%, rather than FS 9%, or even a standard bank loan. If the farmer pays us all back with interest he deserves more than a pat on the back. I'm sure there is. Anything over 2% should always have us questioning what the risks are. Without doubt there is a reason why the borrower hasn't obtained a standard loan at an interest rate of low single digits. The same can be said for almost the entire p2p sector.
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criston
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Post by criston on May 24, 2019 14:40:09 GMT
The interest rate is not the only consideration when taking out a loan.
There could be a non refundable application/valuation fee
There is the initial loan arrangement fee which I have seen as high as 7%
Then there is monitoring fees which can be say 2%.
I have never had a loan, so probably there are other considerations.
So the comparison with a high street bank is difficult to ascertain.
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travolta
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Post by travolta on May 24, 2019 15:24:02 GMT
Willing to bet it will turn into a DOG
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bg
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Post by bg on May 24, 2019 15:51:55 GMT
Why 11%. With such a good LTV I would expect 9%. Is there a risk / concern we are not aware of which results in FS 11%, rather than FS 9%, or even a standard bank loan. If the farmer pays us all back with interest he deserves more than a pat on the back. I'm sure there is. Anything over 2% should always have us questioning what the risks are. Without doubt there is a reason why the borrower hasn't obtained a standard loan at an interest rate of low single digits. The same can be said for almost the entire p2p sector. Not necessarily. You can’t compare everything to standard residential domestic mortgage rates. The going rate for high street bank commercial bridging loans is often 15-20%. Higher still for development bridges. Many banks have withdrawn from the sector completely.
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