trium
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Post by trium on Jun 26, 2019 9:33:06 GMT
From email notification no investment restrictions but in practice only bids in £500 multiples are accepted. Rules me out.
Property loans at bling rates - shape of things to come? This one 10% for 12 months, another this morning 9% for 6 months.
Early days yet but after 30 mins live only 6 investors for £4500!
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09dolphin
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Post by 09dolphin on Jun 26, 2019 10:52:52 GMT
Perhaps investors have discovered that the LTV can be anything from a few % of the declared valuation if there is a distressed sale and have decided it's unwise to invest in loans in this site!!
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r1200gs
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Post by r1200gs on Jun 26, 2019 12:48:30 GMT
Perhaps investors have discovered that the LTV can be anything from a few % of the declared valuation if there is a distressed sale and have decided it's unwise to invest in loans in this site!! That would be me. Currently waiting to see if a 15 percent LTV loan in the ex council flats can be relied upon, the fact I'm not sure it can be relied upon says it all when it comes to my confidence in these clowns. Ten loans sitting there to be funded now.
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p2pstephan
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Post by p2pstephan on Jun 26, 2019 13:04:36 GMT
I know what you mean. I was in the "Edinburgh Flat" loan. Very low LTV, but when they posted an update "31/05/2019 We are chasing the Borrower for an update...", I sold on SM. It should be good but my confidence is not high these days. As for “Dr*mrainey Business Park” LOL. I think the risks we are experiencing, our interest should be more like sunny loans rates not high street bank loan rates.
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jcb208
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Post by jcb208 on Jun 26, 2019 13:20:18 GMT
This crowd are going the same way as Lendy reducing rates,growing list of defaulted loans and very poor recovery rates along with kicking every defaulted loan down the road for another 3 months with false updates.No wonder people are not investing any more , especially at these new rates along with Fundingsecures track record
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baldpate
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Post by baldpate on Jun 26, 2019 13:40:13 GMT
Another twist on this loan - FS failed to publish the Valuation reports until more than an hour after bidding opened, yet by then there had been bids to the value of over £6K! Some lenders obviously have profound trust in FS  ! |
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adrian77
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Post by adrian77 on Jun 26, 2019 17:33:28 GMT
agree with above- also Unding ircle seem to be offering very low rates to borrowers to get the business - I always said that would end in tears.
I only have a few small fun punts on FS now - this one looks to me as if the borrower is using part of the FS loan to repay the Bank Of Ireland loan. Question is why not extend the BOI loan as the interest rate is probably lower? £392K underpinned by a superficial valuation (as stated by valuer) no structural survey and no validation of the rental contracts - £500 minimum bid are FS having a giraffe!
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Post by investor1925 on Jun 27, 2019 9:05:38 GMT
I would've put £100 into this, but NEVER will I put £500 into ANY loan. (& I'd think twice about £250 as well !!!!!)
FS take note
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kielbasa
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Post by kielbasa on Jul 11, 2019 11:38:30 GMT
Interesting change in policy from FS:
"NB - This loan is the first one using different investment conditions.
This loan has a firm closing deadline for investors to invest of 12 noon on 16th August 2019.
As the closing date is pre-determined, investors will only receive interest from the point of loan activation, not at the point of investment.
This is a change of practice on this loan from our current terms under clause 6.1 of our terms and conditions. If the loan is not fully funded by the closing date it will be cancelled, with any invested funds returned, with no interest paid."
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rocky1
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Post by rocky1 on Jul 11, 2019 12:01:15 GMT
FSwhat happened to the underwriters you say will be filling loans from now on.this sort of carry on saying a loan will be withdrawn does not bode well to even think of lending towards it anyway.just say lenders will get their capital back without interest now,better that than getting p*ssed about for the forseeable.it should fill within a month shouldent it.
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coop
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Post by coop on Jul 11, 2019 12:04:09 GMT
Interesting change in policy from FS: "NB - This loan is the first one using different investment conditions.
This loan has a firm closing deadline for investors to invest of 12 noon on 16th August 2019.
As the closing date is pre-determined, investors will only receive interest from the point of loan activation, not at the point of investment.
This is a change of practice on this loan from our current terms under clause 6.1 of our terms and conditions. If the loan is not fully funded by the closing date it will be cancelled, with any invested funds returned, with no interest paid."No mention on what happens to your capital if the deadline passes without being fully funded? Assume it's paid back to lenders but they don't say, or give a timescale. Implies they have had underwriters back away from doing business with them - definitely take your money and run time if it wasn't already!!
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rs
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Post by rs on Jul 11, 2019 12:28:09 GMT
Interesting change in policy from FS: "NB - This loan is the first one using different investment conditions.
This loan has a firm closing deadline for investors to invest of 12 noon on 16th August 2019.
As the closing date is pre-determined, investors will only receive interest from the point of loan activation, not at the point of investment.
This is a change of practice on this loan from our current terms under clause 6.1 of our terms and conditions. If the loan is not fully funded by the closing date it will be cancelled, with any invested funds returned, with no interest paid."No mention on what happens to your capital if the deadline passes without being fully funded? Assume it's paid back to lenders but they don't say, or give a timescale. Implies they have had underwriters back away from doing business with them - definitely take your money and run time if it wasn't already!! This loan is quite odd and there is no transparency from FS about this loan. FS collect £3k a month from the borrower which is supposed to secure the loan but FS do not say what the money will be used for if the loan is delayed after 12 months. Maybe the £3k per month will be lawyers fees or FS fees. I'm staying away from this loan. But then again might grab a chunk if it starts selling fast!
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thedog
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Post by thedog on Jul 11, 2019 14:14:51 GMT
Irrespective of views on the credit I don't think this structure works. I don't see a compelling reason to invest in this in advance of the deadline (locking my funds up for no return) unless it's filling fast - and if my logic is shared by others then it won't fill fast because everyone is holding back so.... I could get the idea of fixed closure dates (and even of interest starting on that date) if the loan was underwritten because then if I liked the loan I'd know I was commiting my funds (for no interest during the committment period) to reserve my place and it was guaranteed to go live. But this isn't underwritten. So i'm being asked to commit my funds to reserve my place is something which may not happen..... Just don't think the structure makes sense, see no point in committing now if I can commit later.
Perhaps I'm wrong, we'll see if it fills, 6% as I write so 20k of other people's money says I'm wrong.
I like the 3k from cashflow, approx covers interest, though "to secure" is an odd ambiguous phrase (perhaps I'm being paranoid). But given FS history what will they actually do if the 3k doesn't turn up one month?
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arby
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Post by arby on Jul 11, 2019 14:29:26 GMT
Irrespective of views on the credit I don't think this structure works. I don't see a compelling reason to invest in this in advance of the deadline (locking my funds up for no return) unless it's filling fast - and if my logic is shared by others then it won't fill fast because everyone is holding back so.... I could get the idea of fixed closure dates (and even of interest starting on that date) if the loan was underwritten because then if I liked the loan I'd know I was commiting my funds (for no interest during the committment period) to reserve my place and it was guaranteed to go live. But this isn't underwritten. So i'm being asked to commit my funds to reserve my place is something which may not happen..... Just don't think the structure makes sense, see no point in committing now if I can commit later.
Perhaps I'm wrong, we'll see if it fills, 6% as I write so 20k of other people's money says I'm wrong.
I like the 3k from cashflow, approx covers interest, though "to secure" is an odd ambiguous phrase (perhaps I'm being paranoid). But given FS history what will they actually do if the 3k doesn't turn up one month?
Completely agree. I would only invest on the deadline or once above 90% filled to avoid capital being tied up for no reason or return.
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adrian77
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Post by adrian77 on Jul 11, 2019 16:46:04 GMT
Agree with all the above - I am not in the business of giving FS an interest free loan of my money should this one not fill.
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