jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Dec 17, 2015 21:55:38 GMT
Just to say that's the last thing I would want - the joy of amortising loans is that the risk diminishes with each payment. Each to their own I 'spose... I agree that an amortising loan's risk decreases with each payment. So the last thing I want is for my investment to shrink as payments are made. I'd much rather that my investment in that loan increased as it amortised. It depends on the loan and what is security for it. The comment about providing functionality and letting investors chose themselves makes sense. I hope that this does work up Chris' to do list eventually as some loans such as some of the WTs or the cruiser for example, might be nice to maintain a stable amount even if that gave a modest increase on the percentage held. Other loans I am happy to drip away at my holdings due to being secured on work equipment or WIP which I assume will depreciate over time. Apart from the cost of Chris and his teams time, I don't see a downside to offering this option, but I'm happy to listen if people think I've missed some.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Dec 17, 2015 22:56:38 GMT
Other loans I am happy to drip away at my holdings due to being secured on work equipment or WIP which I assume will depreciate over time. I agree that the value of work equipment probably would reduce as it gets older. But I'm not so sure about WIP. When a job is less than 50% done, the WIP might not have much value at all because someone who took on such a project might want to do it another way and start again from the beginning. If the job is 90% done, someone who took on such a project might be more willing just to continue it and finish it off quickly. If the borrower is continuing to trade, their WIP ought to stay reasonably constant. Then again, if they're getting into trouble -- and by definition I suppose they must be if we're taking about a loan that's falling into arrears -- then their order book/WIP could be shrinking, and possibly the quality of the work they're doing as well, so the value of their WIP could be falling. I personally don't put a lot of value on things like 'plant & machinery' and WIP. When security has to be sold to cover an overdue debt, the company's assets probably have been run down in a desperate effort to keep the company afloat, so there may be very little value left. And used equipment sold in a 'fire sale' often fetches mere pennies on the pound from the circling vultures. But that's all JMHO.
|
|
skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787 
Likes: 424
|
Post by skippyonspeed on Feb 16, 2016 18:34:46 GMT
Just a couple of niggles about the website colours. On the dashboard could the white font on light grey background be changed, it is not easy on the eye, especially after a couple of beers. The loan book fonts could also be changed to give more contrast.
Going back to the Dashboard, an anomaly that came up a couple of months ago, the Total Lent figure still sometimes only displays 2 decimal points when hovering over it, and as all loans are rounded down it can be out by quite a lot if you are investing in many loans. Mine was out by 10p today and I am invested in <20 loans.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Feb 17, 2016 8:35:41 GMT
... it is not easy on the eye, especially after a couple of beers. This sounds like a feature to prevent irresponsible lending. "I'm sorry I dumped you...loan #166, come back to me, none of the others is as interesting as you...only for one night though as your LTV is too fat..."
|
|
|
|
Post by reeknralf on Feb 18, 2016 9:22:34 GMT
I keep getting logged out for taking too long to scroll through an activity page or type a question. Could the website please be told to recognise typing or scrolling as 'activity'?
|
|
skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
|
Post by skippyonspeed on Feb 22, 2016 0:31:29 GMT
Going back to the Dashboard, an anomaly that came up a couple of months ago, the Total Lent figure still sometimes only displays 2 decimal points when hovering over it, and as all loans are rounded down it can be out by quite a lot if you are investing in many loans. Mine was out by 10p today and I am invested in <20 loans. Well I think someone's been tinkering, now I seem to have acquired a mysterious £19.80.....can't make any sense of it at all now!!!!.....or is it me!......I promise I have had zero alcohol intake.
|
|
skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
|
Post by skippyonspeed on Feb 22, 2016 0:34:05 GMT
Blimey! that was quick, I've been robbed of my new found gains!!!  |
|
|
|
Post by lynnanthony on Feb 26, 2016 2:54:30 GMT
chris , would it be possible to have the message "Assetz Capital is temporarily unavailable while we perform essential maintenance. Please try again later." before I attempt to log in?
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Feb 26, 2016 18:55:38 GMT
chris , would it be possible to have the message "Assetz Capital is temporarily unavailable while we perform essential maintenance. Please try again later." before I attempt to log in? I wonder whether this really has anything to do with site maintenance. ISTM that it's what you get when the system is very slow to respond, and is thought to be better PR than telling the customer that the website simply can't deliver the goods for some reason.
|
|
|
|
Post by lynnanthony on Feb 27, 2016 2:54:54 GMT
chris , would it be possible to have the message "Assetz Capital is temporarily unavailable while we perform essential maintenance. Please try again later." before I attempt to log in? I wonder whether this really has anything to do with site maintenance. ISTM that it's what you get when the system is very slow to respond, and is thought to be better PR than telling the customer that the website simply can't deliver the goods for some reason. Could be, but I only ever see it when I try to log in in the wee small hours, at the sort of time when one might expect maintenance to be carried out, the sort of time when one would not expect the system to be slow for any other reason.
|
|
|
|
Post by crabbyoldgit on Feb 27, 2016 6:53:44 GMT
Sorry this the wrong post but something is wrong about the ltv calcs,previously ive asked if the ltv was recalculated on every capital repayment and updated on the display and this was confirmed unless i misunderstood. However take 54 ,capital remaining £10000, asset £390000 second charge £250000 in my mind leaves security of £140000 on loan of £10000 but the displayed ltv is 66.67%,uh. Looks like the program is not seeing bullet payments when recalculating ltv.By the way i would quite like a bit of 12.5% on an ltv of arround 7% my target is set if your desperate to sell  |
|
|
|
Post by chris on Feb 27, 2016 7:05:23 GMT
I wonder whether this really has anything to do with site maintenance. ISTM that it's what you get when the system is very slow to respond, and is thought to be better PR than telling the customer that the website simply can't deliver the goods for some reason. Could be, but I only ever see it when I try to log in in the wee small hours, at the sort of time when one might expect maintenance to be carried out, the sort of time when one would not expect the system to be slow for any other reason. If it's around 3 - 4:30am it's when a lot of backups and automated system checks are performed. They shouldn't take the site down but they can make it slow enough that the load balancer times out and gives you that maintenance message. We're upgrading our hosting infrastructure in the next few weeks which should make that slow down a thing of the past.
|
|
|
|
Post by chris on Feb 27, 2016 7:08:09 GMT
Sorry this the wrong post but something is wrong about the ltv calcs,previously ive asked if the ltv was recalculated on every capital repayment and updated on the display and this was confirmed unless i misunderstood. However take 54 ,capital remaining £10000, asset £390000 second charge £250000 in my mind leaves security of £140000 on loan of £10000 but the displayed ltv is 66.67%,uh. Looks like the program is not seeing bullet payments when recalculating ltv.By the way i would quite like a bit of 12.5% on an ltv of arround 7% my target is set if your desperate to sell You're calculating LTV incorrectly, well there's more than one way to calculate it but this is the method we use. It's (total value of loans including prior charges) / (total value of the security). So (£250k + £10k) / (£390k) = 66.67%. Edit: May be worth checking how other platforms calculate LTV on second charges, as our figures are conservative but if they're using a calculation like the one you performed then it can make the security look stronger than it really is.
|
|
|
|
Post by crabbyoldgit on Feb 27, 2016 8:15:20 GMT
Thanks cris interesting i see the logic of using all loans against the asset to calc ltv and on the whole think ac have probably got it right being conservitive in this respect , however its interesting how different methodologies would result in different ltv figures and with this loan due to the fact the outstanding loan is so small compared to the overall headroom figure i think the real risk is lower than the ltv would suggest, it just shows how understanding the basis on which stats are derived and the items taken into consideration or ignored are important to understand the real relivance of the figure you are looking at. There are lies , dam lies and statistics.  |
|
|
|
Post by chris on Feb 27, 2016 9:03:44 GMT
Thanks cris interesting i see the logic of using all loans against the asset to calc ltv and on the whole think ac have probably got it right being conservitive in this respect , however its interesting how different methodologies would result in different ltv figures and with this loan due to the fact the outstanding loan is so small compared to the overall headroom figure i think the real risk is lower than the ltv would suggest, it just shows how understanding the basis on which stats are derived and the items taken into consideration or ignored are important to understand the real relivance of the figure you are looking at. There are lies , dam lies and statistics. Indeed, LTV on its own isn't a great measure of risk. It's just one factor. With our conservative methodology in calculating LTV it's basically saying that the £390k of security has to service £260k of debt for lenders to get all their funds back. We could spin it the other way but then in a distressed sale the eventual LTV could end up fluctuating wildly. Take for example a £100k loan secured against a £130k first charge, vs a £100k loan secured against a £280k second charge that has £150k of prior charges. In our calculation the LTVs would be 77% for the first loan and 90% for the second loan. Using your alternative way of calculating it you end up with the original 77%. However in a distressed sale whereby the asset ends up being sold at a 20% discount in the first scenario you'd just about get a full return on your capital whereas in the second scenario you'd end up with a £26k capital loss. A 20% write down in asset value causing a loss on a 90% LTV loan isn't nearly as surprising as on a 77% LTV loan. So the way LTV is calculated becomes very important where prior charges are concerned. Perhaps we should start a thread in "General" so all platforms can confirm their calculation as I feel it's important that lenders know they're comparing like for like figures. I would hope that all platforms are already using the same methodology but it doesn't hurt to check.
|
|
