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Post by westonkevRS on Feb 24, 2015 19:19:29 GMT
Could you also please let us know what the LTV is based on? The security would surely be a '2nd legal charge' (unless the loan is for a mortgage, where it would be a '1st legal charge'), which would imply that the LTV is based on the equity on the property?
A - RateSetter does not have a license to take a first charge on a matrimonial residential property, so charges are either second or first in commercial or investment (e.g. buy to let) properties. There are a variety of methods to value to property depending on if it's residential or commercial, which I won't go into detail, but we have strict internal policy and processes documented. Although for residential this is quite easy, often using the last actual sale price if it was within the last couple of years.
As well as getting the lowest LTV possible on that equity (if that is the case), where you mentioned a possible max of 70%, would the Commercial Lending team also work towards getting the lowest possible valuation (the lower end of the 'fair market value')?
A - As above, although I would say that the Commercial lending team are "of a certain age". I've worked through multiple recessions since 1992 when I started my first career job, and these guys are longer in the tooth than me. They are fully aware of how property prices can go down (and not just up), and can go down quite quickly. So they are a prudent bunch, irrespective of our policies.
For a £1.2m secured loan, that would be an equity valued at about £1.7m (assuming 70% on market value - outstanding mortgage). Would such security then be on a commercial property that the borrower has a mortgage on?
A - Although transparency is a wonderful thing (and as I've said, I think we've gone a step too far) I'm not going to comment on individual deals especially this one. I would say that the property is valued far (far, far, far) in excess of £1.7m and RateSetter was not the only lender on this deal.
Kevin.
P.S. I would appreciate if you could confirm you don't have any competitor links to disclose, as most of your posts have been quite questioning of RateSetter (which is fine) and especially our commercial lending aspect. Would you might confirming?
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jonbvn
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Post by jonbvn on Feb 24, 2015 19:31:01 GMT
P.S. I would appreciate if you could confirm you don't have any competitor links to disclose, as most of your posts have been quite questioning of RateSetter (which is fine) and especially our commercial lending aspect. Would you might confirming? Something to be discussed personally methinks.
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Post by swfab on Feb 24, 2015 19:56:56 GMT
P.S. I would appreciate if you could confirm you don't have any competitor links to disclose, as most of your posts have been quite questioning of RateSetter (which is fine) and especially our commercial lending aspect. Would you might confirming? Thanks again for your quick answers westonkevRS . No problem. I have indeed no competitor links whatsoever and I am a lender of yours (as well as FC and starting with zopa and one new smaller platform), myself being part of a small group of friends who started first with p2b lending 2 years ago (and being elected to start this thread on this RS board :-) ) and started p2p lending only last year. We came in late compared to most of you! But we now have many £100K with RS only so I/we have an interest in getting as much info as we can :-) . The information shared in this thread has been invaluable in how I make my next funding decisions. I would like to ask you to please accept my apologies for appearing insensitive with all the questions I asked.
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elgerod
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Post by elgerod on Feb 25, 2015 0:21:38 GMT
Westonkev,
Your clear and honest answers to the various questions above are much appreciated, thank you, especially if you are in OZ and/or on holiday and have spent the time to respond to these issues. (Are you watching the cricket?) I think it shows much greater transparency and will no doubt improve Ratesetter's standing (even more) in the P2P community.
PS: No links to disclose; just a simple P2P lender using various platforms!
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Post by deddington on Feb 25, 2015 10:30:10 GMT
Kev. Yes congratulations on the level of detail RS have provided in this loan book.
One question I have in looking at the date of first payment, unless I am misunderstanding what it is saying, there are a number of loans which have a first payment date some way into the future.
For example roughly £11m not due to start paying till 2016 and a total of roughly £44m not due to start paying May 2015 to Feb 2016.
So if I am involved in one of those loans how does it work? Do I get my monthly repayments in the meantime from the Provision Fund or do I have to wait till the first repayment date?
Sorry if I am misreading the data or it is already explained elsewhere.
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ikorodu
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Post by ikorodu on Feb 25, 2015 10:55:26 GMT
Whilst we are on the subject of openness...
Is there any published data on the spread of investments made by investors? I.e. mean, mode and median invested per lender or can you give ranges eg there are 1000 investors in total and the top 20% of investors account for 80% of the total.
Some on here are clearing investing much larger sums than others (I'm small fry!), and it would be interesting to see the split of investors.
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pip
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Post by pip on Feb 25, 2015 11:46:54 GMT
Whilst we are on the subject of openness... Is there any published data on the spread of investments made by investors? I.e. mean, mode and median invested per lender or can you give ranges eg there are 1000 investors in total and the top 20% of investors account for 80% of the total. Some on here are clearing investing much larger sums than others (I'm small fry!), and it would be interesting to see the split of investors. Why doesn't Ratesetter do an open day where we can all come in and go through the drawers. Not really sure what the value is of opening the lenders books. When you lend money you clearly have an interest in who that money is going to. The makeup of the lenders should be of no interest to the borrowers, unless possibly borrowers like to have the knowledge that their interest repayments are helping Mrs Goggins in her old age to pay for those Cruises... I am also of the old school, or was it gamblers anonymous, one of the two who 'don't discuss amounts'. However I have already been told on here how rich I am, so confirmation of the tiny amount lesser mortals than myself are lending would be good for the ego.
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c88dnf
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Post by c88dnf on Feb 25, 2015 14:14:38 GMT
Why doesn't Ratesetter do an open day where we can all come in and go through the drawers. I really, really don't want to go through westonkevRS's drawers.
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ikorodu
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Post by ikorodu on Feb 25, 2015 14:16:54 GMT
Whilst we are on the subject of openness... Is there any published data on the spread of investments made by investors? I.e. mean, mode and median invested per lender or can you give ranges eg there are 1000 investors in total and the top 20% of investors account for 80% of the total. Some on here are clearing investing much larger sums than others (I'm small fry!), and it would be interesting to see the split of investors. Why doesn't Ratesetter do an open day where we can all come in and go through the drawers. Not really sure what the value is of opening the lenders books. When you lend money you clearly have an interest in who that money is going to. The makeup of the lenders should be of no interest to the borrowers, unless possibly borrowers like to have the knowledge that their interest repayments are helping Mrs Goggins in her old age to pay for those Cruises... I am also of the old school, or was it gamblers anonymous, one of the two who 'don't discuss amounts'. However I have already been told on here how rich I am, so confirmation of the tiny amount lesser mortals than myself are lending would be good for the ego. The reason for asking was out of interest nothing more. Clearly there are some big investors. I suppose a valid question might be 'do investors above a certain level warrant special treatment in a similar way that those who are approved for larger loans are given special status (ie by being allowed loans bigger than 25k)?' Do big investors get better rates or a more personal service?
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pip
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Post by pip on Feb 25, 2015 15:51:34 GMT
Why doesn't Ratesetter do an open day where we can all come in and go through the drawers. Not really sure what the value is of opening the lenders books. When you lend money you clearly have an interest in who that money is going to. The makeup of the lenders should be of no interest to the borrowers, unless possibly borrowers like to have the knowledge that their interest repayments are helping Mrs Goggins in her old age to pay for those Cruises... I am also of the old school, or was it gamblers anonymous, one of the two who 'don't discuss amounts'. However I have already been told on here how rich I am, so confirmation of the tiny amount lesser mortals than myself are lending would be good for the ego. The reason for asking was out of interest nothing more. Clearly there are some big investors. I suppose a valid question might be 'do investors above a certain level warrant special treatment in a similar way that those who are approved for larger loans are given special status (ie by being allowed loans bigger than 25k)?' Do big investors get better rates or a more personal service? Well as I say I don't discuss amounts. However I don't really see what more I could want lending £500,000k than £50. There is a market for the rates and I put up my money and it get's matched in a queue. The only possible benefit would be if you could queue jump and get first picks on new borrowers, I hope this doesn't happen. However if they made the site Gold when I logged in, or possibly Platinum then maybe I could get in the spirit of your idea. Or Ratesetter could keep sending me gifts for being such a good customer, although starting to sound like one of those casino high roller clubs, and we know who wins there. I say keep it simple and treat all lenders the same.
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ikorodu
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Post by ikorodu on Feb 25, 2015 17:52:51 GMT
Well as I say I don't discuss amounts. However I don't really see what more I could want lending £500,000k than £50. There is a market for the rates and I put up my money and it get's matched in a queue. The only possible benefit would be if you could queue jump and get first picks on new borrowers, I hope this doesn't happen. However if they made the site Gold when I logged in, or possibly Platinum then maybe I could get in the spirit of your idea. Or Ratesetter could keep sending me gifts for being such a good customer, although starting to sound like one of those casino high roller clubs, and we know who wins there. I say keep it simple and treat all lenders the same. I agree all lenders should be treated the same. I assume that we are all the same. Until recently I thought RS only lent to individuals and then only to to 25k. This is not the case. Maybe some lenders are more equal than others. If you don't ask we may not ever know.
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pip
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Post by pip on Feb 25, 2015 17:56:40 GMT
Well as I say I don't discuss amounts. However I don't really see what more I could want lending £500,000k than £50. There is a market for the rates and I put up my money and it get's matched in a queue. The only possible benefit would be if you could queue jump and get first picks on new borrowers, I hope this doesn't happen. However if they made the site Gold when I logged in, or possibly Platinum then maybe I could get in the spirit of your idea. Or Ratesetter could keep sending me gifts for being such a good customer, although starting to sound like one of those casino high roller clubs, and we know who wins there. I say keep it simple and treat all lenders the same. I agree all lenders should be treated the same. I assume that we are all the same. Until recently I thought RS only lent to individuals and then only to to 25k. This is not the case. Maybe some lenders are more equal than others. If you don't ask we may not ever know. You raise a good question, are there any lenders who receive preferential rates, or jump to the top of the queue beyond other lenders or who have preferential access to the provision fund.
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c88dnf
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Post by c88dnf on Feb 25, 2015 18:12:55 GMT
You raise a good question, are there any lenders who receive preferential rates, or jump to the top of the queue beyond other lenders or who have preferential access to the provision fund. If there are, they don't include this investor with a holding well into 6 figures. Indeed I haven't had my cashback from the January offer yet, so I'm clearly not top of any pile!
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pip
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Post by pip on Feb 25, 2015 18:28:16 GMT
You raise a good question, are there any lenders who receive preferential rates, or jump to the top of the queue beyond other lenders or who have preferential access to the provision fund. If there are, they don't include this investor with a holding well into 6 figures. Indeed I haven't had my cashback from the January offer yet, so I'm clearly not top of any pile! Alright moneybags, no need to show off...maybe you are a big lender but maybe you are not a good chap! I get no special treatment either and still no cashback for me. Maybe working it out is harder than they thought, I can do some more pivot tables if they want.
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Post by westonkevRS on Feb 25, 2015 19:01:20 GMT
Why doesn't Ratesetter do an open day where we can all come in and go through the drawers. Not really sure what the value is of opening the lenders books. When you lend money you clearly have an interest in who that money is going to. The makeup of the lenders should be of no interest to the borrowers, unless possibly borrowers like to have the knowledge that their interest repayments are helping Mrs Goggins in her old age to pay for those Cruises... I am also of the old school, or was it gamblers anonymous, one of the two who 'don't discuss amounts'. However I have already been told on here how rich I am, so confirmation of the tiny amount lesser mortals than myself are lending would be good for the ego. The reason for asking was out of interest nothing more. Clearly there are some big investors. I suppose a valid question might be 'do investors above a certain level warrant special treatment in a similar way that those who are approved for larger loans are given special status (ie by being allowed loans bigger than 25k)?' Do big investors get better rates or a more personal service? Absolutely not. The £10 "little guy" gets exactly the same treatment as institutions on all approved loans. Our biggest "institution" is I think the British Business Bank, and you get the same deal as them. Probably better as you actually have more control (don't ask me technical specifics of the BBB process, I won't tell you). Kevin.
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