mikes1531
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Post by mikes1531 on Oct 23, 2015 23:41:11 GMT
Does this suggest that the borrower can get a 75% LTV BtL loan for less than 6.5%? Wow!! You need to factor in AC fees/margin - so less than 7.5%, say - yes - I'd say it was not that hard to come by on the high street. Edit: also possible the borrower is putting down a larger deposit to reduce the LTV and hence get a better deal too. Ah, yes. I forgot about the AC margin. (The AC fees probably are a 'sunk' cost so wouldn't be reduced if the loan were moved elsewhere.) And the suggestion made in edit is quite possible -- it's a small loan, so it wouldn't take many extra £k to reduce the LTV noticeably.
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bigfoot12
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Post by bigfoot12 on Oct 24, 2015 6:51:31 GMT
Does this suggest that the borrower can get a 75% LTV BtL loan for less than 6.5%? Wow!! I had a quick look on HSBC and Fixed rate 75% BTL mortgage is about 4.9% (any period 2 - 5 years). Trackers from 3.9%.
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Post by Ton ⓉⓞⓃ on Oct 24, 2015 12:44:24 GMT
If it refinances end of Nov '15 it sounds like a good imitation of QAA. But before I buy in is there any chance that this is the Borrower's way of trying to get a reduction off of AC's ongoing fees? I can easily imagine that the refinance gets cancelled after I buy more.
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Post by mrclondon on Oct 24, 2015 14:00:28 GMT
If it refinances end of Nov '15 it sounds like a good imitation of QAA. But before I buy in is there any chance that this is the Borrower's way of trying to get a reduction off of AC's ongoing fees? I can easily imagine that the refinance gets cancelled after I buy more. Although its not long since this loan was still a permanent feature of the available loans list, there is reasonable liquidity - I sold over £500 this week and all bar £50 went immediately.
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mikes1531
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Post by mikes1531 on Oct 24, 2015 14:25:29 GMT
If it refinances end of Nov '15 it sounds like a good imitation of QAA. Except that there's no investor control of the timing for retrieving their money. The borrower might refinance... or it might not happen. The parts might be saleable on the Aftermarket... or they might not be. Etc., etc. This isn't the only loan due for imminent repayment. Others due soon include... - Falmouth WT (#127)
- Cornwall WT (#121)
- KBL#2 (#154)
- Spondon BL (#74)
As evidence of the uncertainties involved, the last loan on the list has been expecting refinance to happen soon for over six months now.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 26, 2015 17:42:30 GMT
#172 School loan suspended monitoring event - general business issue not AC loan specific
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agent69
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Post by agent69 on Oct 26, 2015 18:07:02 GMT
#172 School loan suspended monitoring event - general business issue not AC loan specific Can we reposes the school? Might feel a bit guilty doing that.
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SteveT
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Post by SteveT on Oct 26, 2015 18:15:38 GMT
Keep the Bursar in detention until he pays up
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ianj
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Post by ianj on Oct 26, 2015 18:32:02 GMT
It would appear from a press article that the school have been aware of a financial problem for at least a month!
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kermie
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Post by kermie on Oct 26, 2015 19:47:19 GMT
Google will find an article published on Sunday in the local "chronicle". Could close end of this term if matters don't improve. Essentially struggling to attract enough pupils.
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oldgrumpy
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Post by oldgrumpy on Oct 26, 2015 20:37:42 GMT
If reports that the school is trying to find alternative places for its pupils are correct, then it would seem that they actually are preparing to close down, and are not expecting anyone to buy the school and refinance/reorganize it. I feel for the parents most, especially those who sent their boys to the new secondary school which opened only a year ago, probably awash with promises, and now have to hope the disruption does not damage the boys' education; presumably they only have Year 7 and 8 pupils so far , and not very many. Oh well - that's another £800 of frozen funds I have on AC.  |
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Post by bracknellboy on Oct 26, 2015 21:24:09 GMT
Wow. I reviewed this loan several times. Something about it just didn't pass my sniff test: but despite looking at it a few times I couldn't persuade myself to participate. And no, no shadenfreude intended. Just thinking I've dodged a bullet.
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agent69
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Post by agent69 on Oct 26, 2015 21:34:09 GMT
First Legal charge over land and buildings.
LTV <35%
What could go wrong?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 26, 2015 22:09:56 GMT
It would appear from a press article that the school have been aware of a financial problem for at least a month! Raises questions about AC loan monitoring again Im afraid. School has been looking for a takeover for a month. Surely this must be info that should have to be communicated by the school to the people financing it. Better update the distressed list 
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pikestaff
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Post by pikestaff on Oct 26, 2015 22:20:41 GMT
bracknellboy - I wasn't too sure about this one either. The business plan looked shaky, but I was convinced by the low LTV to risk a small amount. The property valuation was prepared on the assumption that the site is sold for residential development, so we should be OK even if the school closes. I hope...
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