upland
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Post by upland on Dec 19, 2016 15:32:11 GMT
Similarly would I be right in thinking that the soon to be Southampton loan is not really a first charge ?
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r00lish67
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Post by r00lish67 on Dec 19, 2016 16:02:28 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... 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%. Agreed, although the newly lowered 56% LTV first charge loan currently available on the SM at a 1% discount (13% interest also) is now rather more appealing - to me as a current non-taxpayer anyway! Edit: well, it was, before it was snapped up a moment ago. Although, a 0.7% discount still ain't bad.
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mikes1531
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Post by mikes1531 on Dec 21, 2016 3:57:06 GMT
Similarly would I be right in thinking that the soon to be Southampton loan is not really a first charge ? Yes, indeed. It's really a third charge. As it says in the description... "In the event of default, this loan will rank behind the previous two."Of course, the description also includes "In the event of default, investors in the second loan will rank behind those in the first two." If that doesn't confuse you, nothing will!
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SteveT
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Post by SteveT on Dec 21, 2016 17:27:48 GMT
fundingsecure, will tomorrow's replacement NI Property loan still rank ahead of later tranches, per the existing tranche that is being repaid? I presume the 12% rate suggests it will.
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Post by fundingsecure on Dec 21, 2016 17:46:54 GMT
Yes, this will rank ahead of the supplemental loan.
The LTV quotes is the total LTV, but effectively the renewal will be at a lower LTV di#ue to the higher priority.
FundingSecure
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SteveT
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Post by SteveT on Dec 22, 2016 9:16:46 GMT
Yes, this will rank ahead of the supplemental loan. The LTV quotes is the total LTV, but effectively the renewal will be at a lower LTV di#ue to the higher priority. FundingSecure The description of this morning's "1781629470 - NI property - Renewal" says "There are currently three other loans secured against the same property totalling £702,000. Two of these loans have equal priority; the third is a supplemental loan for £200,000, which would have lower priority in the event of a default." However, the loan this renewal replaces (2693448989, @ 12%) had first ranking priority over the next 2 loans (8662746020 and 8454072999, @ 13%) as well as the "supplemental loan" (7520536122, also @ 13%). And in fact, the 3rd loan also ranks after the 2nd loan. Has the ranking of this 1st tranche renewal really been downgraded to parity with the next 2 loans, or is the description mistaken? If it is indeed to be at parity with the next 2 loans, why does it not carry the same rate (13%)? And how can the ranking of the 2nd loan have been downgraded to parity with the 3rd whilst it is still live? Thanks.
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SteveT
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Post by SteveT on Dec 22, 2016 11:10:13 GMT
1781629470 - NI property Renewal is now confirmed as ranking ahead of all 3 later loans (and 97% filled in 10 mins)
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mikes1531
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Post by mikes1531 on Jan 6, 2017 16:39:01 GMT
We will be posting a new loan at 11am tomorrow, 7th January Loan secured by a first legal charge on a property in Cardiff with a value of £575,000 Loan Amount: £37,500 (fifth tranche of a facility loan) Interest: 13%pa Overall LTV: 70% More infoAccording to the info reached by the More Info link above... As an investor in the first tranche of this loan, I feel somewhat misled by the description of that tranche, which says... I thought I understood what was meant by a facility loan, but now it's clear that I don't. fundingsecure: Can you please explain?
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Post by fundingsecure on Jan 12, 2017 13:26:21 GMT
Thank you for your question. Your understanding of a facility loan is quite correct. We will continue to advance up to the level of facility subject to ensuring the work is progressing and the LTV ceiling is not breached. In this case the facility was increased from £295k to £400k on the third tranche. This was a mistake as anything over £295k should have been treated as a second loan ranking behind the facility. To correct this, FS will indemnify any losses to investors in the first two tranches in the event that the loan defaults and the property is sold between £295k and £400k. We will put a note on the loan to notify investors.
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Post by fundingsecure on Feb 16, 2017 19:21:07 GMT
As stated in the loan details - there are no other chattel mortgages / charges / finance secured against this vehicle.
FS
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mikes1531
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Post by mikes1531 on Feb 17, 2017 0:29:21 GMT
I raised the questions below when this loan first was brought to the platform. fundingsecure didn't respond at that time and, since the info for the loan is the same now as it was back in December, the questions remain. Perhaps FS will be so kind as to provide some answers at this time. 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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hendragon
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Post by hendragon on Feb 21, 2017 12:01:48 GMT
I am pretty unconvinced by the new race-car loan. To quote FS "The valuation has been estimated by the borrower but confirmed through a comparison of recent sales of similar vehicles". I do not want to suggest that the borrower is anything less than scrupulous and honest, but as a valuation strategy I find this questionable.
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ashtondav
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Post by ashtondav on Feb 21, 2017 12:06:58 GMT
Not sure i can see the difference between that and
"value established by examination of recent sales of similar cars and confirmed by borrower."
Either way its been established with reference to recent sales as well as a borrower valuation.
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ashtondav
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Post by ashtondav on Feb 21, 2017 12:07:43 GMT
Er, so where's the 12:00 loan?  |
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hendragon
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Post by hendragon on Feb 21, 2017 12:08:48 GMT
all gone. I missed it too
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