ian
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Post by ian on Oct 11, 2020 10:34:06 GMT
Firstly I have to say I’m a big fan of BC, their track record speaks for itself. However I’m a little concerned at the number of loans coming onto the platform particularly second charge loans with late 60’s LTVs. The beauty of the platform is its 100% capital redemption record and liquidity, I just hope the drive for growth (I believe they’re hoping for a 3 fold increase) rate doesn’t impact upon their impeccable record.
One other concern is BC appear to be less aggressive than other platforms in addressing defaults, with timescales on the long side.
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iRobot
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Post by iRobot on Oct 11, 2020 12:34:36 GMT
Re: second charge loans with high(ish) LTVs - if they concern you as a cohort, just avoid them. I do, for the most part - and always those where the loan is described as being 'for business purposes'.
Re: 'less aggressive' - I've not noticed that* and I'd go as far to say they are one of the more 'aggressive' platforms, in terms of standing for no-nonsense from borrowers and pursuing every legal recourse available to them as promptly as possible.
However, if anyone is relying on liquidity as an exit - ie they never hold a loan to term - then I would have concerns. My personal view is that - thanks to CV-19 and the effects it has had and will continue to have on the economy for some time - there will be an increase in mortgage defaults and a possible downturn in pricing. At some point - and it won't necessarily be soon, but the timing is sufficiently difficult for me to predict so as to make me cautious now - that will, I think, have an impact on platform liquidity. (There was a significant surge in SM listing early on in CV-19, and it took a while to clear. Whether that was through sale or by withdrawal of the listing as the initial 'panic' (concern) subsided, I don't know.
As always, NEVER invest money that may be needed short-to-medium term in (fundamentally) illiquid investments such as P2P. Sorry, that's not me trying to teach you how to suck eggs - I know you've been in this particular investment game long enough to take a sensible approach to exposure - but rather anyone looking at P2P / BC as a potential investment.
* - as per the above, my caution has seen me reduce exposure to the platform throughout 2020, so, TBH, I've not been following newer defaults to the same extent as I have done in previous years.
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Greenwood2
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Post by Greenwood2 on Oct 11, 2020 14:08:38 GMT
I find with more loans coming to the market you can be more selective and have time to do DD on loans. In the past you had to pretty much grab anything or it would be gone in literally seconds.
Which platforms are more aggressive? Unfortunately there are legal procedures to go through to repossess properties, which take time and currently court dates are long. There have been one or two borrowers who have used every possible legal argument to thwart BC recovering funds, but BC have never given up and just continue pursuing them through the courts.
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michaelc
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Post by michaelc on Oct 16, 2020 14:15:26 GMT
Re: second charge loans with high(ish) LTVs - if they concern you as a cohort, just avoid them. I do, for the most part - and always those where the loan is described as being 'for business purposes'.Interesting. That seems to be a large number of the loans but moreover does it really matter what reason the borrower gives on the form ?
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iRobot
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Post by iRobot on Oct 16, 2020 15:01:12 GMT
It shouldn't really and it is based on little more than gut feeling, but I really don't need much persuading not to invest in 2nd charges.
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criston
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Post by criston on Oct 16, 2020 17:37:57 GMT
Todays addition, Glamorgan, £45.5k, 9.6%, 6 months, 1st charge, 65% LTV, is hanging around surprisingly.
What happened to the big one? There was over £600k left earlier. 50% LTV at 8.4% if I remember rightly.
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Greenwood2
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Post by Greenwood2 on Oct 16, 2020 19:41:02 GMT
Todays addition, Glamorgan, £45.5k, 9.6%, 6 months, 1st charge, 65% LTV, is hanging around surprisingly. What happened to the big one? There was over £600k left earlier. 50% LTV at 8.4% if I remember rightly. Could you give the numbers?
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criston
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Post by criston on Oct 16, 2020 20:01:52 GMT
Todays addition, Glamorgan, £45.5k, 9.6%, 6 months, 1st charge, 65% LTV, is hanging around surprisingly. What happened to the big one? There was over £600k left earlier. 50% LTV at 8.4% if I remember rightly. Could you give the numbers? Not sure where to find the numbers, but found the big one eventually, Winkfield Tranche A, after forgetting there was a second pipeline page.
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criston
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Post by criston on Jan 26, 2021 9:42:49 GMT
A few 10.8% 1st charge previous loans with 2/3 months left, just appeared. if you are quick.
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Post by overthehill on Aug 9, 2021 15:30:40 GMT
3 new loans available now. gloucestershire, crawley and merseyside!
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Post by Ace on Aug 9, 2021 18:19:11 GMT
3 new loans available now. gloucestershire, crawley and merseyside!
All gone!
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michaelc
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Post by michaelc on Aug 10, 2021 16:06:32 GMT
3 new loans available now. gloucestershire, crawley and merseyside!
All gone! Its starting to sound like 2016 again
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Greenwood2
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Post by Greenwood2 on Apr 27, 2022 17:14:55 GMT
Recent 'glut' of loans on the PM and the SM does make it easy to invest/reinvest in loans you like (rather than grabbing anything available), rates are down but still pretty good.
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Post by davefoz on Jun 30, 2022 17:15:54 GMT
Bit of concern re lack of liquidity re disposals on the secondary market, given the amount available… the platform needs a couple or 3 big redemptions
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Greenwood2
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Post by Greenwood2 on Jun 30, 2022 17:21:04 GMT
Bit of concern re lack of liquidity re disposals on the secondary market, given the amount available… the platform needs a couple or 3 big redemptions A lot today on the SM nothing a few days ago (Edit: when I checked on the 23rd) we wait to see how long this glut lasts.
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