dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Jul 1, 2021 16:02:46 GMT
Friday 2nd July 2021 - Loan Launch Details:
Borrower Sector: Leisure
Loan Launch: 11am – 2nd July 2021 (READ ONLY)
Loan Live: 2pm – 2nd July 2021
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Post by df on Jul 1, 2021 16:15:21 GMT
Borrower Sector: Leisure
Loan Tranche Amount: £400,000
Term: 48 months (12 months minimum term)
Rate: 15% - Amortising
Security: Second ranking Debenture, Equitable Charges over three properties, Personal Guarantee.
Instant Returns: Enabled
Loan Launch: 11am – 2nd July 2021 (READ ONLY)
Loan Live: 2pm – 2nd July 2021
My first thought - security is not very attractive.
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Jul 1, 2021 17:22:22 GMT
There are potentially a lot of Personal lock down excess people may want to loose, bit like a new year resolution. So depending on what the security actually is may make it a little more attractive.
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criston
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Post by criston on Jul 1, 2021 17:25:24 GMT
Borrower Sector: Leisure Loan Tranche Amount: £400,000 Term: 48 months (12 months minimum term) Rate: 15% - Amortising Security: Second ranking Debenture, Equitable Charges over three properties, Personal Guarantee. Instant Returns: Enabled Loan Launch: 11am – 2nd July 2021 (READ ONLY) Loan Live: 2pm – 2nd July 2021 My first thought - security is not very attractive. No limit mentioned, perhaps you are right.
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Post by df on Jul 1, 2021 18:01:31 GMT
Borrower Sector: Leisure Loan Tranche Amount: £400,000 Term: 48 months (12 months minimum term) Rate: 15% - Amortising Security: Second ranking Debenture, Equitable Charges over three properties, Personal Guarantee. Instant Returns: Enabled Loan Launch: 11am – 2nd July 2021 (READ ONLY) Loan Live: 2pm – 2nd July 2021 My first thought - security is not very attractive. No limit mentioned, perhaps you are right. It will probably still fill very quickly - 15%+amortising factor will play its role.
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blender
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Post by blender on Jul 2, 2021 8:32:26 GMT
Probably best judged as an unsecured loan - at 15% amortising.
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Post by westcountry on Jul 2, 2021 10:27:43 GMT
ablrate , is there any particular reason why the security on the BTL houses is an equitable charge, rather than a legal charge, please? I would be MUCH happier with a legal charge than an equitable charge, and this is probably the difference between me investing or not in this loan 
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Post by ladywhitenap on Jul 2, 2021 10:29:06 GMT
I note that no LTV quoted in the proposal.
The security could be better IMHO so thats why its 15%
Given there is highly likely to be a peeone loan along soon, I think I'll keep most of my available funds for that and maybe just take a small slice of this one or pass it by - jury here is still out.
LW
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Post by westcountry on Jul 2, 2021 10:35:52 GMT
I note that no LTV quoted in the proposal. The security could be better IMHO so thats why its 15% Given there is highly likely to be a peeone loan along soon, I think I'll keep most of my available funds for that and maybe just take a small slice of this one or pass it by - jury here is still out. LW Having done a few sums, I calculate the loan as having a LTV of 76% second-charge (max £700k loan + £1110k prior-ranking loans/£2385k assets), so a bit risky for me. Especially as the loan is secured on the company by a debenture, rather than charges on specific assets. So (as Crowdstacker found with the BN liquidation) all the company's assets could be put up as collateral for other loans, and those loans would take priority over this ABLRate one in event of a default. Taking this aspect into consideration, and only considering the property assets, then increases the loan's LTV to 113% (max £700k loan + £698k prior-ranking loans/£1235k assets). I'm out!
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blender
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Post by blender on Jul 2, 2021 10:51:07 GMT
I am sure that Ablrate would have tried to get a legal charge and could only get the equitable charge. So it's 15% amortising and I am in for a while.
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huxs
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Post by huxs on Jul 2, 2021 10:52:00 GMT
Probably best judged as an unsecured loan - at 15% amortising. agreed, in the case of a default the security is going to be costly to recover and what will be left after everyone else has had their fill is anyone's guess.
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woodie
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Post by woodie on Jul 2, 2021 11:00:43 GMT
In doc. 'Borrowing Proposal' re. repayment pg 3 Interest & Capital pg 19 Interest only  edit. hey the computer has taken over I didn't put a sad face I put a question mark |
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SteveT
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Post by SteveT on Jul 2, 2021 11:05:53 GMT
ablrate , the email and loan details summary say "Amortising", but the Loan Terms page in the prospectus says "Interest Only". Does the Borrower know it's amortising?  Even assuming a steadily reducing capital balance, I reckon the borrower will pay £204k in total interest and fees over 48 months to borrow the initial £400k. That's eye-wateringly expensive credit, so God only knows how much the existing loan they're refinancing is costing them 
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GreenZero
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The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Jul 2, 2021 11:15:10 GMT
He seems to have been a director of quite a few companys, most of which have either been disolved or liquidated.
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Post by ablrate on Jul 2, 2021 11:30:07 GMT
ablrate , is there any particular reason why the security on the BTL houses is an equitable charge, rather than a legal charge, please? I would be MUCH happier with a legal charge than an equitable charge, and this is probably the difference between me investing or not in this loan The first charge holder is a regular mortgage lender and they rarely allow legal charges to go alongside them.
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edit. hey the computer has taken over I didn't put a sad face I put a question mark
