registerme
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Post by registerme on Jun 5, 2015 10:02:31 GMT
From FC's perspective they really need to wean us lenders off of 8%+2% cashback. Equally, us lenders don't want to be weaned off that rate (and indeed, want better rates). Finding the balance is going to take some time, and some failed auctions. I think FC screwed up, in effect they set a precedent that told lenders "secured A+ property investment means 8% +2%CB" which in turn informed our views of other risk bandings, security levels, and rates.
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SteveT
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Post by SteveT on Jun 5, 2015 10:04:58 GMT
Meanwhile, as we wait to see if Friday Crumpets will throw us a tasty morsel today, over on ReBS there's a 36 month £100k loan to a training company closing at 9pm tonight, still seeking another £32k to fill at 19% / 20%. With the background info provided and the copious "crowd due diligence" that's now there too, I've a better understanding of the company's prospects than I ever would with a C or C- loan on FC. Only the rather illiquid SM lets ReBS down, but 19% / 20% loan parts are usually pretty easy to move on. [NB. This is NOT an investment recommendation]
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Post by goldservice on Jun 5, 2015 10:28:45 GMT
Property part SM sales have dried up in the last 72 hours. At the same time, the first two of those three loans over £400k have surged towards the finishing line. Perhaps Autobid has been told to concentrate on them. This would also explain why they are now filled to the same level (an Autobid feature, I think.) But the third one (at 7.5%) is languishing. Is this because Autobid cannot help because so many lenders have set their Autobid setting to a minimum of 8%? But this is something that Furiously Crunching can deduce from its data and could have planned for somehow, perhaps.
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Post by betterthanworking on Jun 5, 2015 10:33:35 GMT
SteveT I completely agree with you. And I can't help feeling that the days of regular cash back are numbered. It's all just a plan to train us to snap up 8%ers. And probably the masses will, given enough Pavlovian behavioural conditioning.
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Post by Deleted on Jun 5, 2015 12:57:08 GMT
I think you have to see this issue in the round of other portal discussions. AC say they are struggling to get good quality loans at the rates we like to enjoy, FC are clearly trying to set a benchmark at 8% 0CB or lower. Other Portals are slow to find deals, my conclusion is that the arrival of the Institutions has swamped the borrowers with cash and is offering great loans at the moment (a borrowers market). FC might argue that only 50% goes to Institutions but that is the point, 50% goes to people who will accept a low rate which drives the growth of the market down the cheap and dirty. Meanwhile RS is leveling up (see their comments about restricting institutions to retain the retail lender market).
With all this debate I see two logical actions.
1) Sit on your hands if you see poor rates for the risks 2) Move your business away from the anyone using Institutions
We have to recognise that the Institutions were the ones who put us in the 2007 mess, don't ket them do the same to P2P as they did to sub-prime.
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fasty
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Post by fasty on Jun 5, 2015 14:01:20 GMT
Oh here's an interesting one : 13301 Property loan, 10% for 6 months, no splashback. Oh, and SECOND legal charge. Rate is a bit low to get me keen.
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adrianc
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Post by adrianc on Jun 5, 2015 22:10:21 GMT
Meanwhile, as we wait to see if Friday Crumpets will throw us a tasty morsel today, over on ReBS there's a 36 month £100k loan to a training company closing at 9pm tonight, still seeking another £32k to fill at 19% / 20%. With the background info provided and the copious "crowd due diligence" that's now there too, I've a better understanding of the company's prospects than I ever would with a C or C- loan on FC. Lovely, from a lender's point of view... But... Why would any sane borrower take that money at that price? Unless, of course, it was the only source that'd touch you?
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Post by Deleted on Jun 7, 2015 14:47:18 GMT
Also why would you lend to someone who was that desperate? I like the "survival of the fittest" not "survival of the big risk taker".
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blender
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Post by blender on Jun 7, 2015 21:55:03 GMT
No problem with lending at high rates, the risk is with keeping it. Edit: page 32, WOW!
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SteveT
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Post by SteveT on Jun 8, 2015 7:52:16 GMT
£90k / 21% still needed on Upminster 5 (13168, 7.5%+2%CB) with just 2hrs 20mins to go. That's a lot of Monday morning clicking for the Work Experience...
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SteveT
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Post by SteveT on Jun 8, 2015 10:01:14 GMT
£90k / 21% still needed on Upminster 5 (13168, 7.5%+2%CB) with just 2hrs 20mins to go. That's a lot of Monday morning clicking for the Work Experience... Intensive clicking by "FC Property Finance" began with 20 mins to go. Wonder how they are going to get the remaining tranche(s) away?
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baldpate
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Post by baldpate on Jun 8, 2015 10:34:42 GMT
... Wonder how they are going to get the remaining tranche(s) away? Auctions lasting 2/3 weeks? Multiple smaller tranches? Anything except larger cashback!
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SteveT
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Post by SteveT on Jun 8, 2015 15:16:10 GMT
13329 (Surrey 3), 8%+2%CB, £450k, 19 months
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fasty
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Post by fasty on Jun 8, 2015 16:11:18 GMT
I observe with interest that Commercial Mortgage 13181 (A, 9% fixed) never filled by completion time, only reaching 94%. Should we expect resurrection with incentives?
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SteveT
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Post by SteveT on Jun 8, 2015 16:21:13 GMT
I observe with interest that Commercial Mortgage 13181 (A, 9% fixed) never filled by completion time, only reaching 94%. Should we expect resurrection with incentives? Interesting that even FCPF didn't fancy that one (and it was only £8k short of filling)
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