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Post by savingstream on Jan 9, 2015 12:00:54 GMT
Dear Investor, Existing Loans1990 Tyne-Class Converted Lifeboat - Boat was sold this week and we are in funds today. The loan capital plus accrued interest has been repaid to all investors in this loan. PBL 4 – Waiting to hear outcome of planning committee meeting. PBL 5 – Visit to take place in January. PBL 6 – No change from last update. PBL 7 – No change from last update. PBL 8 – No change from last update. PBL 10 – No change from last update. PBLs 11/12/13 – Following a conference call with all parties earlier in the week, we are aiming for Monday/Tuesday completion. Funds sent to solicitors to hold to our order. PBL 14 – No change from last update. PBL 15 – No change from last update. PBL 16/17/18 – Legals ongoing. Expected 1 week completion. PBL 19 – Legals ongoing. Expected 1 week completion. PBL 20 – Legals ongoing. Expected 1 week completion. PBL 21 – This should complete today and once confirmed, all cashback and upfront interest will be paid. Pipeline LoansPublic house in Portsmouth Land in Bedford with potential worth £1m, loan c£700k. Existing client; strong PG. Potential PDRs for resi. Signed Heads of Terms, solicitors instructed. Going live on platform next week. 500+ acres of woodland in East Sussex valued at +£2m. Hotel, Maidstone, £750k value. Restaurant in Tunbridge Wells. Thank you for investing in Saving Stream. Kind regards, The Saving Stream Team www.savingstream.co.uk |
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Post by savingstream on Jan 9, 2015 12:46:27 GMT
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star dust
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Post by star dust on Jan 9, 2015 17:02:22 GMT
Well, PBL 021 has indeed gone live now, and cash back credited. But no notification received again/yet?
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Post by savingstream on Jan 9, 2015 17:14:39 GMT
It looks like we have been having issues sending email today through AWS. Here is a copy of the notification email for PBL021: --- Dear Investor, Property bridging loan PBL021 has now been drawndown and gone live with the borrower. All cashback and applicable upfront interest has been credited to investor accounts. This loan has a minimum term of 3 months but potentially could be 6 months, this is why investors who have selected upfront interest have only received 91 days of upfront interest. If the loan extends beyond 3 months you will accrue interest monthly at this point. Thank you for investing in Saving Stream. Kind regards, The Saving Stream Team www.savingstream.co.uk |
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jan 9, 2015 17:33:39 GMT
This loan has a minimum term of 3 months but potentially could be 6 months, this is why investors who have selected upfront interest have only received 91 days of upfront interest. If the loan extends beyond 3 months you will accrue interest monthly at this point. Is it also the case that loan parts running past the point at which up-front interest has been applied and which then become subject to the monthly interest accruals and payment, also then become able to be sold on the secondary market?
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star dust
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Post by star dust on Jan 9, 2015 17:38:01 GMT
It looks like we have been having issues sending email today through AWS. Here is a copy of the notification email for PBL021: --- Dear Investor, Property bridging loan PBL021 has now been drawndown and gone live with the borrower. All cashback and applicable upfront interest has been credited to investor accounts. This loan has a minimum term of 3 months but potentially could be 6 months, this is why investors who have selected upfront interest have only received 91 days of upfront interest. If the loan extends beyond 3 months you will accrue interest monthly at this point. Thank you for investing in Saving Stream. Kind regards, The Saving Stream Team www.savingstream.co.ukThanks for the information, still no emails for me. If the loan does extend beyond three months will existing investors be automatically 'rolled over' or will they be given a choice to get funds back?
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Post by savingstream on Jan 9, 2015 17:49:16 GMT
Investors who have elected to receive upfront interest will revert to monthly interest at 3 months for this loan and have access to the secondary market in order to sell loan parts if required.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jan 9, 2015 17:53:07 GMT
It looks like we have been having issues sending email today through AWS. Here is a copy of the notification email for PBL021: --- Dear Investor, Property bridging loan PBL021 has now been drawndown and gone live with the borrower. All cashback and applicable upfront interest has been credited to investor accounts. This loan has a minimum term of 3 months but potentially could be 6 months, this is why investors who have selected upfront interest have only received 91 days of upfront interest. If the loan extends beyond 3 months you will accrue interest monthly at this point. Thank you for investing in Saving Stream. Kind regards, The Saving Stream Team www.savingstream.co.ukThanks for the information, still no emails for me. If the loan does extend beyond three months will existing investors be automatically 'rolled over' or will they be given a choice to get funds back? Any particular reason you're thinking this will be different to any other loan that runs over time for some reason star dust? We are always able to sell such loans. In this case, 3 months is just a minimum - you could just sell it on couldn't you? Or were you thinking about the tie in due to having received up-front interest that I asked about in the previous post?
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jan 9, 2015 17:55:13 GMT
Investors who have elected to receive upfront interest will revert to monthly interest at 3 months for this loan and have access to the secondary market in order to sell loan parts if required. Thanks for clarifying that. I'm assuming that this also applies to all loans on which up-front interest has been paid and which then run beyond their anticipated time, unless told otherwise.
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mikes1531
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Post by mikes1531 on Jan 9, 2015 18:45:46 GMT
Have savingstream ever clarified the situation of a loan with a minimum that is repaid early? Where some number of months' of interest is paid in advance to lenders who choose that option, I presume they are allowed to keep it all even if their capital is returned sooner than expected. But what about lenders who are paid monthly? Does all the 'overpaid' interest go to the lenders holding parts at the time of the redemption? Is it spread proportionally over all lenders who held parts of that loan even if they've sold some or all of those parts? Or does the extra interest all go to SS? Not knowing what happens in this situation makes it impossible to make a sensible decision whether to choose monthly or upfront interest, so SS providing some clarity would be most appreciated. |
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star dust
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Post by star dust on Jan 9, 2015 18:46:15 GMT
Thanks for the information, still no emails for me. If the loan does extend beyond three months will existing investors be automatically 'rolled over' or will they be given a choice to get funds back? Any particular reason you're thinking this will be different to any other loan that runs over time for some reason star dust? We are always able to sell such loans. In this case, 3 months is just a minimum - you could just sell it on couldn't you? Or were you thinking about the tie in due to having received up-front interest that I asked about in the previous post? Actually I was thinking more of the opposite, unseemly scrambles if investors were not rolled over. IIRC investors were given a choice (to pull out or remain) when PBL02a became PBL14, and when PBL 09 became PBL19 everyone was paid up and had to purchase anew if they wanted. Although I think both involved increased loan sizes, also I think most of the boats that were rolled were refunded first and then put back on the platform. Personally I would probably rather have my investment rolled, I was just seeking confirmation although their post (and for that matter the loan description) implied this might be the case.
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ramblin rose
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Post by ramblin rose on Jan 9, 2015 18:56:17 GMT
Any particular reason you're thinking this will be different to any other loan that runs over time for some reason star dust? We are always able to sell such loans. In this case, 3 months is just a minimum - you could just sell it on couldn't you? Or were you thinking about the tie in due to having received up-front interest that I asked about in the previous post? Actually I was thinking more of the opposite, unseemly scrambles if investors were not rolled over. IIRC investors were given a choice (to pull out or remain) when PBL02a became PBL14, and when PBL 09 became PBL19 everyone was paid up and had to purchase anew if they wanted. Although I think both involved increased loan sizes, also I think most of the boats that were rolled were refunded first and then put back on the platform. Personally I would probably rather have my investment rolled, I was just seeking confirmation although their post (and for that matter the loan description) implied this might be the case. Ah, understand. I wasn't around to get into this one and only cursorily read it's details. I was thinking it was set up as a 6 month loan with a minimum 3 months, but now see it is a 3 month loan with possibility to extend. I think these days one says 'My bad' in these circumstances, does one not? 
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mikes1531
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Post by mikes1531 on Jan 9, 2015 20:37:33 GMT
Ah, understand. I wasn't around to get into this one and only cursorily read it's details. I was thinking it was set up as a 6 month loan with a minimum 3 months, but now see it is a 3 month loan with possibility to extend. I think these days one says 'My bad' in these circumstances, does one not? It's easy to get confused by this one. On the website Description & Documents tab it says "This is a 6 month loan." On Page 1 of the Bridging Loan Particulars PDF document it says "Loan Term (max): 3 months", and on Page 2 it says "Lendy Ltd is deducting 6 months of interest payments from the loan advance." And SS's revelation in today's announcement of the drawdown that "This loan has a minimum term of 3 months but potentially could be 6 months" will add to the confusion. Why did they wait until drawdown to release that info? Why didn't they set it up as a six-month loan with a minimum interest charge of three months' worth? savingstream won't win any prizes for consistency on this one. The good news is that, because it's a relatively small loan, anyone who wishes to exit after three months should be able to do that reasonably easily. The question I raised earlier today is relevant here too... What exactly would happen if the borrower repays the loan after two months? Who gets the interest paid in advance for Month 3?
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Post by savingstream on Jan 10, 2015 12:01:17 GMT
Apologies for the confusion in length of loan term with this one. The borrower has agreed 3 months minimum but may require it for up to 6 months, therefore investors needed to be informed that the loan could last for 6 months but may repay after 3, or anytime after that.
This is not possible as we always deduct the agreed terms interest from the loan advance and hold on account. This ensures all investors can be paid the interest for the minimum term, be it monthly or upfront.
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mikes1531
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Post by mikes1531 on Jan 10, 2015 17:54:50 GMT
This is not possible as we always deduct the agreed terms interest from the loan advance and hold on account. This ensures all investors can be paid the interest for the minimum term, be it monthly or upfront. : Thanks for trying to clarify the situation. Based on your response, however, I obviously haven't made my question clear enough. I'm not sure what you are suggesting is impossible. In my example, I understand that the borrower will be paying (deducted at drawdown) three month's worth of interest even if they wish to repay early. But if they arrange a refinance after two months, surely they'd be allowed to repay the loan at that time, i.e. a month early. So for a lender who opted for upfront interest what would happen seems clear enough -- they receive their three months' worth of interest in advance, but find that their money is returned early. My uncertainty relates to lenders who opt for monthly interest. In my example, a lender who invested at drawdown and retained their part, would be paid one month's worth of interest after the first month. (For simplicity, I'll assume that drawdown occurred on the 1st of the month.) At the end of the second month, they receive another month's worth of interest. At that point, the borrower repays and this lender receives their capital back. My question is... What happens to the interest for the third month (that SS still is holding)? Does it go to the lender who was receiving their interest monthly, so that they're in a similar position to the lender who took their interest upfront? (i.e. Their money was invested for two months but they received three months' worth of interest.) Or does that third month's interest go to SS? If that third month's interest would go to the lender, then there's a further possible situation to clarify, and that's the case of the monthly interest lender who sells their loan part in the secondary market at the end of the first month. They will have received their one month's worth of interest at the time the part was sold, and the buyer of the part would receive one month's worth of interest at the end of the second month. But what happens to the interest for the third month (that SS still is holding)? Does it all go to the secondary market buyer who was holding the loan part when the loan was repaid? Is it shared between the two lenders who each held that part for a month? Does it go to SS? If no previous borrower has repaid their loan before their minimum term had elapsed, then these are questions that haven't needed to be asked before, so perhaps SS haven't thought about what they would do in that situation before now. But the particulars of PBL018 raised the significant possibility that loan -- with a six-month minimum term -- might be repaid after about three months. The answers to the above questions have a significant impact on a lenders' decisions whether or not to opt for their interest up front. If I really believe that there's a good chance that the loan will be repaid after just three months, and only those lenders who opt for upfront interest would benefit by receiving the interest for months 4-6, then I ought to opt for upfront interest. There'd be less of an issue if I'd be paid the 'bonus' interest even if I opted to take my interest monthly, but knowing the answers also would influence whether or not to buy or sell parts of that loan in the secondary market. If by selling a part I'd forfeit my entitlement to any bonus interest that might become payable, I'd think twice before deciding to sell a part. And if by buying a part I'd gain an entitlement to some or all of any bonus that might become payable, I'd be more eager to purchase parts in that loan if they appear on the secondary market. I look forward to SS clarifying what they would do in the situations described above, so that I can make appropriate decisions about my future SS investing.
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