sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Dec 14, 2016 15:35:17 GMT
The borrower of the Welsh Castle still owes money to AC lenders in 2014, in the form of 44 days pre-drawdown interest plus bonuses. AC are still trying to recover this money.
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Post by thetreasurer on Dec 14, 2016 15:59:35 GMT
The borrower of the Welsh Castle still owes money to AC lenders in 2014, in the form of 44 days pre-drawdown interest plus bonuses. AC are still trying to recover this money. Avoiding this one like the plague.
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Post by Deleted on Dec 14, 2016 16:04:25 GMT
Quick query ... why is there such outcry when loan rates are dropped below 12%
I too would also love higher rates across the board but MT (who receive rave reviews here) also have many loans under 12%
Just intrigued?
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oldgrumpy
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Post by oldgrumpy on Dec 14, 2016 16:23:01 GMT
Quick query ... why is there such outcry when loan rates are dropped below 12% I too would also love higher rates across the board but MT (who receive rave reviews here) also have many loans under 12% Just intrigued? I will explain why I will not invest in any small/medium size loans on SS below 12%. Apparently they have stated* that they will adjust rates down when they are certain that there will be enough gamblers investors willing to fund at the lower levels. That means they are pricing the loans according to liquidity rather than the risk that investors (not SS, you will notice) will be taking. That means a loan risk might (in SS's estimation) be as risky as other 12% loans (or more so), but will be set at (8%?), 9% to maybe 11% if SS think they can get away with it. That does not mean the borrower is necessarily benefiting from a lower priced loan. It may well be that a large (multi-million pound) loan with a genuine low LTV to a proven reliable and trustworthy borrower may warrant a lower rate, but I haven't seen one yet. Edit: The current pipeline Suffolk offering on SS details at least one reason (IMHO) why the loan should be marketed up at 14% rather than reduced to 11%!!! I'd take that .... for three months, then ditch!AC has dropped its rates even more. They now say the loans they (we!) are funding are lower risk than the many 12%+ possibilities that they decline. We'll see. edit * Can't find it now. I think it was a PM to someone. George at SS will be able to confirm.
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Post by Deleted on Dec 14, 2016 16:33:30 GMT
Quick query ... why is there such outcry when loan rates are dropped below 12% I too would also love higher rates across the board but MT (who receive rave reviews here) also have many loans under 12% Just intrigued? I will explain why I will not invest in any small/medium size loans on SS below 12%. Apparently they have stated that they will adjust rates down when they are certain that there will be enough gamblers investors willing to fund at the lower levels. That means they are pricing the loans according to liquidity rather than the risk that investors (not SS, you will notice) will be taking. That means a loan risk might (in SS's estimation) be as risky as other 12% loans (or more so), but will be set at (8%?), 9% to maybe 11% if SS think they can get away with it. That does not mean the borrower is necessarily benefiting from a lower priced loan. It may well be that a large (multi-million pound) loan with a genuine low LTV to a proven reliable and trustworthy borrower may warrant a lower rate, but I haven't seen one yet. AC has dropped its rates even more. They now say the loans they (we!) are funding are lower risk than the many 12%+ possibilities that they decline. We'll see. Well I certainly see why you take issue if this is the technique applied, lowest accepted interest rate applies ..... Where does your money go instead?
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oldgrumpy
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Post by oldgrumpy on Dec 14, 2016 16:52:52 GMT
I have kept my investment in SS fairly moderate in the last year or so because I have some issue with their update procedures, and my own DD reveals some borrowers have "interesting" track records. Some other loans do look reasonably solid, especially initially. I have no part of loans with less than 90 days left at this moment. MT has my backing (similar investment ceiling as many of their loans are just to a "handful" of borrowers, a bit in ABL and FS (very selective, and fingers crossed), plenty still in RS 6%+ but not at current rates - some in "holding/rolling" at 3.1%. I do use AC quite a lot at 9%+, but not at 7%/8% at present. Almost finished withdrawing from FC (they seem to think nearly everything they offer is A/A+ risk these days - absolute bol.. nonsense) and Zopa, and Wellesley get no look in at 2.35%. I'm still assessing BondMason's offering. Some RS surplus repayments may go there. Collateral I have a small remainder after big sell off - I'm uneasy about that. Then there's Christmas to invest in, and HMRC will be expecting a big present in a few weeks time, so I'm saving up! Waiting for a stock market plunge so I might invest this year's ISA in some dividend paying funds - not an expert! (I'm also not convinced a good P2P ISA will even appear before April 2017). Let's face it - all the P2P platforms display plenty of risk; that's the game  . |
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Post by penguin on Dec 14, 2016 17:00:31 GMT
The Suffolk property is not the most distinguished piece of architectural design.......
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stokeloans
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Post by stokeloans on Dec 14, 2016 17:38:06 GMT
The Suffolk property is not the most distinguished piece of architectural design....... and the mere mention of asbestos on the property is enough to put me off
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romy
Member of DD Central
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Post by romy on Dec 14, 2016 18:19:54 GMT
....let alone the fact that we're providing cash to get the borrower out of the recievers hands
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Steerpike
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Post by Steerpike on Dec 14, 2016 18:53:41 GMT
White elephant, flood lands, asbestos, over valued.
Leaving three worthy of some consideration.
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am
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Post by am on Dec 14, 2016 19:12:39 GMT
....let alone the fact that we're providing cash to get the borrower out of the recievers hands You can find some information about the previous loan and receivership at Companies House. The was taken out in February 2015, and the receivers called in last month, giving a duration of roughly 21 months. The name on the registered charge isn't the same name as on the receivership form, but this turns out to be a change of name by the lender. The lender has been raising debt finance via a P2P site, so you can look at their brochure - their policy is to extend, renew or call in loans. The borrower's accounts for June 2015 shows debts of £1.8m, £1.5m of which was due some time before Jun 2016.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
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Post by sqh on Dec 14, 2016 19:21:51 GMT
The borrower of the Welsh Castle still owes money to AC lenders in 2014, in the form of 44 days pre-drawdown interest plus bonuses. AC are still trying to recover this money. useful to know. ? part of their refunding. Was that loan against the same property or somewhere else? The money owed was for flats 1-11 in the W*** W***. That's the same as the new SS pipeline loan, although we need the new VR to confirm this. It's worth noting that in 2014 these flats were valued at circa 50% of the proposed new valuation.
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Post by Harland Kearney on Dec 14, 2016 19:33:50 GMT
The borrower of the Welsh Castle still owes money to AC lenders in 2014, in the form of 44 days pre-drawdown interest plus bonuses. AC are still trying to recover this money. Thanks for the heads up!
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Post by Deleted on Dec 14, 2016 19:48:49 GMT
White elephant, flood lands, asbestos, over valued. Leaving three worthy of some consideration. Well that's the new bunch of loans suitably annihilated ..... just have to work out which ones you're talking about now! So far I'm only prefunding the student flats .... sob
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Post by dualinvestor on Dec 14, 2016 20:53:27 GMT
Doesn't really matter what we say SS will lend other people's money into propositions where, in at least one case, it has a problem at rates lower than just two months ago, at no risk to themselves.
Exposes the cant and hypocrisy of the claim lower rates were to encourage better quality loans.
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