baldpate
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Post by baldpate on Nov 15, 2016 9:36:30 GMT
I've seen no mention of it here or on the website, but I received an email today saying that a new loan would be launched tomorrow. What I can't understand is why this second charge loan is being offered at just 12% -- especially since the first charge loan is at 59% LTV.  It's a relatively small loan (£32k), and FS clearly think it's going to be very popular because they've said a £500 investment limit will be applied. I'll be surprised if it's funded quickly, but it won't be the first time I've been surprised by investors' appetites for loans I wouldn't touch. This is a renewal - so FS may have knowledge of sufficient current lenders rolling-over the their investments, that they don't need to worry about the loan filling. This property has been on the market since September 2015, according to rightmove - and frankly, the interior doesn't look that attractive to me - so I guess it is overpriced (hence the discounted 'valuation' ?) I agree - not an attractive proposition at 12% for a 2nd charge LTV of 70% and a doubtful 'valuation'.
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mikes1531
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Post by mikes1531 on Nov 15, 2016 16:41:34 GMT
What I can't understand is why this second charge loan is being offered at just 12% -- especially since the first charge loan is at 59% LTV. I'll be surprised if it's funded quickly, but it won't be the first time I've been surprised by investors' appetites for loans I wouldn't touch. This is a renewal - so FS may have knowledge of sufficient current lenders rolling-over the their investments, that they don't need to worry about the loan filling. The fact that it's a renewal explains a lot. I posted my earlier message based on the initial 'New Loan' announcement, which failed to mention that detail. In the event, FS do seem to have set the investment limit right. A few minutes ago, the loan was 80% funded, with 22 investors having put in the £500 maximum.
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Post by mrclondon on Nov 16, 2016 11:39:01 GMT
One of today's new property loans (Property in Handsworth - 1078884501 ) £135k 13% + bonuses 1st charge 68% LTV on a residential property (albeit one that possibly has current commercial use planning consent NOT residential - see valuation report page 2 final paragraph) has filled to 85% within 30 minutes of going live which appears to confirm my thoughts that it is over priced. I doubt the remaining availability will last for long.
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mikes1531
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Post by mikes1531 on Dec 3, 2016 22:32:31 GMT
fundingsecure: A new loan appeared today (Loan Ref: 3033854831 - Collection of railway models) that looks an awful lot like a number of other FS loans that all have been made to a single borrower. Those older loans -- which total something around £250k -- mention that the borrower has other FS loans, whereas today's loan says nothing of that nature. Does this mean today's loan is to a different borrower? If not, do you not think that the borrower's other FS loans are a significant fact which ought to have been disclosed to potential investors?
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mikes1531
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Post by mikes1531 on Dec 9, 2016 3:42:42 GMT
I'm somewhat surprised and rather disappointed that fundingsecure have not responded to the questions I asked a few days ago in the previous message in this thread. I guess I'll have to ask them via a direct email to FS and see if they reply to that. In the meantime, here's another question for them... We will be posting a new loan at 11am tomorrow, 9th December Loan secured by a first legal charge on a property in Poole valued of £1,100,000 Loan Amount: £732,000 - renewal of existing loan Interest: 13%pa Overall LTV: 66.5% The description of the loan being renewed includes the following... It seems pretty obvious that nothing concrete has happened yet, but I note that there is no mention of the borrower's exit plan in the description we have so far of the renewal loan. My questions for FS, therefore are... - Is the property on the market now? If so, can you please provide a link to the agent's website?
- Is the borrower still working toward one of the two options described seven months ago?
- Are there other options being considered/pursued?
- Has the borrower decided which of the options is their preferred plan at the moment?
- If there borrower does have a plan, how long do they expect it to take before they'll be in a position to repay the FS loan? (i.e. Is another renewal likely to be needed?)
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bernard
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Post by bernard on Dec 9, 2016 14:39:41 GMT
Yes I agree. I think where there is a renewal, investors should always be given some information on where the project stands now (otherwise how should we decide whether to renew or not .... ). fundingsecure? |
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Post by eascogo on Dec 9, 2016 19:32:05 GMT
6070998298 - D********* L*** S****** Funding for this 2nd tranche is progressing well despite the many question marks with regard to valuation and scale of this ambitious scheme. Cashback, bonuses and a low LTV thrown in must help. But my question is what is likely to happen if the scheme doesn't take off? Might this not result in a protracted redemption? An article published in a local newspaper on 02/11/16 makes for interesting reading .
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ashtondav
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Post by ashtondav on Dec 11, 2016 9:30:24 GMT
We, so can we have the link to the article. Or a summary of said article, please.
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Post by eascogo on Dec 11, 2016 19:59:32 GMT
We, so can we have the link to the article. Or a summary of said article, please. Sorry @ashtonday for omitting a link. I ended my post with "link omitted as this reveals the borrower" but that was removed by a mod. You'll just have to google the date given together with something to do with oasis or the like. Shouldn't be too taxing.
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SteveT
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Post by SteveT on Dec 12, 2016 8:22:32 GMT
We, so can we have the link to the article. Or a summary of said article, please. Sorry @ashtonday for omitting a link. I ended my post with "link omitted as this reveals the borrower" but that was removed by a mod. You'll just have to google the date given together with something to do with oasis or the like. Shouldn't be too taxing. I doubt the comment was removed by a Mod (there'd be no reason to do so). Did you place it inside square brackets? Sometimes I've found that the Proboards software fails to pick up comments I write in square brackets.
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mikes1531
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Post by mikes1531 on Dec 12, 2016 13:02:38 GMT
Sorry @ashtonday for omitting a link. I ended my post with "link omitted as this reveals the borrower" but that was removed by a mod. You'll just have to google the date given together with something to do with oasis or the like. Shouldn't be too taxing. I doubt the comment was removed by a Mod (there'd be no reason to do so). Did you place it inside square brackets? Sometimes I've found that the Proboards software fails to pick up comments I write in square brackets. I had similar thoughts. Why would a mod remove that text? And if they had, wouldn't there have been the usual note at the bottom showing that the message had been edited?
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Post by eascogo on Dec 12, 2016 16:34:14 GMT
Sorry @ashtonday for omitting a link. I ended my post with "link omitted as this reveals the borrower" but that was removed by a mod. You'll just have to google the date given together with something to do with oasis or the like. Shouldn't be too taxing. I doubt the comment was removed by a Mod (there'd be no reason to do so). Did you place it inside square brackets? Sometimes I've found that the Proboards software fails to pick up comments I write in square brackets. My assumption was the phrase had been removed by a mod. And yes I did use square brackets so Proboards software is not well behaved. Thanks for the feedback SteveT. Am now ending this post with another phrase in square brackets to see what happens [testing admin 123456].
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mikes1531
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Post by mikes1531 on Dec 14, 2016 17:43:42 GMT
We will be posting a new loan at 5pm today, 14th December Loan secured by a second legal charge against a property in Bath with a value of £345,000 Loan Amount: £30,000 Interest: 13%pa LTV: 68.1% : The loan description says that the first charge is for £208k. (208+30)/345=69%. So how was the 68.1% LTV calculated? Also, when I "click on the link to view an appraisal of selling price for the property", I'm presented with a 1-page document that appears to be the starting point for a search for properties for sale in BA2 in a price range of £325k to £425k by one particular agent in the past six months. I can't see how that relates to the value of the security for this loan. What am I missing?
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mikes1531
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Post by mikes1531 on Dec 19, 2016 14:52:50 GMT
I'm a bit surprised and rather disappointed that fundingsecure haven't bothered to reply to the questions I asked in my last posting. I may be wasting my time, but I'll ask questions about today's loan anyway... We will be posting a new loan at 2pm this afternoon. The loan is secured by a first legal charge against a property in Herne Bay with a current value of £1,150,000 and a GDV of £1.25m Loan Amount: £150,000 (In addition to £645,000 already advanced) This is a supplemental loan, with priority falling behind the existing loans in the event of a default. It is therefore offering an increased interest rate of 13%pa LTV: 69.1% ISTM that FS are being misleading or disingenuous, or perhaps just very sloppy, in suggesting that the 13% rate on this loan is an "increased rate" in recognition of this loan effectively being a second charge. The first charge loan against this property may have started out paying 12% interest, but four of the eight tranches of that loan are paying 13% interest and those four tranches are 60% of the total first charge loan.. I also don't understand why the text of today's loan includes "The overall LTV will now be 63.6%". |
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Liz
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Post by Liz on Dec 19, 2016 15:01:17 GMT
I'm a bit surprised and rather disappointed that fundingsecure haven't bothered to reply to the questions I asked in my last posting. I may be wasting my time, but I'll ask questions about today's loan anyway... We will be posting a new loan at 2pm this afternoon. The loan is secured by a first legal charge against a property in Herne Bay with a current value of £1,150,000 and a GDV of £1.25m Loan Amount: £150,000 (In addition to £645,000 already advanced) This is a supplemental loan, with priority falling behind the existing loans in the event of a default. It is therefore offering an increased interest rate of 13%pa LTV: 69.1% ISTM that FS are being misleading or disingenuous, or perhaps just very sloppy, in suggesting that the 13% rate on this loan is an "increased rate" in recognition of this loan effectively being a second charge. The first charge loan against this property may have started out paying 12% interest, but four of the eight tranches of that loan are paying 13% interest and those four tranches are 60% of the total first charge loan.. I also don't understand why the text of today's loan includes "The overall LTV will now be 63.6%". No way I would invest in this second charge. This should be paying nearer 20%.
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