bg
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Post by bg on Mar 6, 2017 22:36:04 GMT
Out of interest, who can lay claim to holding the highest A+ loan interest rate for a loan that's still active? I mention as I've just snagged a passing slice of a carelessly discarded 7408 @ 13.8%, which seems positively ludicrous in today's straitened world. Their financials were even solvent too, unlike most that I see (but never buy) on the auction list today. I've A+ 9533 at 14.1%, a rejected WL and now through 26 repayments (and that's 21 more than any other loan I hold!)
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am
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Post by am on Mar 6, 2017 22:38:39 GMT
Out of interest, who can lay claim to holding the highest A+ loan interest rate for a loan that's still active? I mention as I've just snagged a passing slice of a carelessly discarded 7408 @ 13.8%, which seems positively ludicrous in today's straitened world. Their financials were even solvent too, unlike most that I see (but never buy) on the auction list today. Have just seen a couple of parts of that loan at 11.2%, but at 3% premium, and an old notification that the loan might be repaid early.
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blender
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Post by blender on Mar 6, 2017 22:50:56 GMT
I have a loan at 16% with no fees, secured on property. If it were with FC I am sure it would be A+, but then it would not be at 16% after fees.
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acky
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Post by acky on Mar 7, 2017 6:46:20 GMT
Comment on the 2-month overdue Cheshire property loan on 24 Feb "the refinance will commence on Monday". Next comment on 3 Mar "Listing of the refinance will commence on Monday". Silly me for twice believing that they meant the Monday next following the comment - I wonder which Monday they do mean!
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Post by bonfemme on Mar 7, 2017 6:47:15 GMT
About a year ago, when I was totally fed up with FC, I sold most of my juicy much-loved loan parts (3pc mark up of course), and sort of regret some of my pique. I'm sure I had an A+ at 15pc. For some reason (probably because they were in processing) I have a handful left that I hung onto. Got an A (8637) at 14.8.
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r00lish67
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Post by r00lish67 on Mar 7, 2017 8:49:36 GMT
About a year ago, when I was totally fed up with FC, I sold most of my juicy much-loved loan parts (3pc mark up of course), and sort of regret some of my pique. I'm sure I had an A+ at 15pc. For some reason (probably because they were in processing) I have a handful left that I hung onto. Got an A (8637) at 14.8. Very nice. I must admit I decided some time ago that FC SME loans just weren't worth it at any (available) rate. It just feels like the sword of damocles hangs over any loan without asset backing to me now, so that the possibility of a zero return of capital just outweighs even a 14% return on capital. Perhaps if I had a hundred different 14%'ers nicely balanced I would, but I don't think that's going to happen anytime soon So those ones have just been summarily flushed from my loan holding.
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SteveT
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Post by SteveT on Mar 7, 2017 9:02:02 GMT
I used to have parts in about a dozen A+ loans that I picked up as early closers with rates in the 14 - 15% range, back when an A+ rating generally meant the businesses were profitable and had positive net assets. I held most of them until the Buyer Rate at 3% Premium was down to around 9 - 10% and then sold. Happy days.
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metoo
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Post by metoo on Mar 7, 2017 18:00:41 GMT
Comment on the 2-month overdue Cheshire property loan on 24 Feb "the refinance will commence on Monday". Next comment on 3 Mar "Listing of the refinance will commence on Monday". Silly me for twice believing that they meant the Monday next following the comment - I wonder which Monday they do mean! It may be an 80% assumption that whenever this refinance eventually does get going, it will be a day other than a Monday. Perhaps the refinance really did commence last Monday, and the listing really did commence this Monday, it just hasn't materialised yet. After all, they did say it would take 3-4 weeks. Perhaps the property team each have to putt a hole-in-one before the listing is allowed to go live?
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guff
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Post by guff on Mar 7, 2017 20:25:38 GMT
Out of interest, who can lay claim to holding the highest A+ loan interest rate for a loan that's still active? I mention as I've just snagged a passing slice of a carelessly discarded 7408 @ 13.8%, which seems positively ludicrous in today's straitened world. Their financials were even solvent too, unlike most that I see (but never buy) on the auction list today. I've got some 5614, that was only an "A" but I got it at 14.6%. Shame you can't sell at more than a 3% premium. I've got another A (8709) at 14.5%… with 1% C/B.
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acky
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Post by acky on Mar 8, 2017 8:49:12 GMT
Out of interest, who can lay claim to holding the highest A+ loan interest rate for a loan that's still active? I mention as I've just snagged a passing slice of a carelessly discarded 7408 @ 13.8%, which seems positively ludicrous in today's straitened world. Their financials were even solvent too, unlike most that I see (but never buy) on the auction list today. I've A+ 9533 at 14.1%, a rejected WL and now through 26 repayments (and that's 21 more than any other loan I hold!) The loanbook shows that 14.1% is the highest rate on any outstanding A+ loan (on 9533 and 7301). There's 14% on 7507 and 14881 (which is late). There was an A+ with parts at 15% but that has been repaid.
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bg
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Post by bg on Mar 8, 2017 8:52:12 GMT
I've A+ 9533 at 14.1%, a rejected WL and now through 26 repayments (and that's 21 more than any other loan I hold!) The loanbook shows that 14.1% is the highest rate on any outstanding A+ loan (on 9533 and 7301). There's 14% on 7507 and 14881 (which is late). There was an A+ with parts at 15% but that has been repaid. I had about 2k of it originally I think but have sod most of it (have just £195 now). If I put it for sale at 3% premium it gets bought by bots instantly.
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acky
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Post by acky on Mar 8, 2017 18:01:20 GMT
So Cheshire refinance has finally appeared and it's a B! But only 10%, the same as the current A+. Makes no sense to me, but no wonder they think it will take 3-4 weeks to complete the refinance. I'd have bought a good five figures at A+ or A 10%, but not interested as a B - will be far too difficult to sell if I want the cash. For the time being, though, the overdue tranches are accruing 12% with no fee, so I hope it takes at least 3 to 4 weeks!
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andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Mar 8, 2017 19:41:28 GMT
Like you I find the current rate unappealing and look forward to getting 12% on some current tranches for a while yet.
I thought it best to flag the track record (these current late loans were already a refinance of earlier late loans) to the unwary investor by asking a pertinent question of the borrower which inevitably won't get answered.
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metoo
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Post by metoo on Mar 8, 2017 20:29:24 GMT
It's interesting that the Total Funding Requirement is 102% of the original requirement, despite presumably being nett of the 3 sales so far, whereas the GDV of the 10 units + land included in the valuation is only 74% of the original GDV.
Possibly the loans include funding for all the remaining building work with the extra 5 houses now planned. Meanwhile 12 houses are excluded from the GDV due to the tardiness of the building work, on the presumption they would not be sold in time to repay despite expected completion in the next 8 months. The original 20 homes were supposed to be finished 2 years earlier than that of course. It's good to see that reasonable conservative assumptions are being made on the LTV based on the experience of this development.
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blender
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Post by blender on Mar 8, 2017 22:17:30 GMT
I don't think it is a B in terms of risk of loss. I think I may have seen the odd riskier A+ SME. What I do like is the longer term, which means a safe net 9% for longer with the likelihood that it will get paid early, and selling to avoid the end game should not be necessary. Agreed that if you might wish to have the cash back early, then the B may be a problem.
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