jayjay
Member of DD Central
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Post by jayjay on Nov 25, 2015 16:09:03 GMT
Ramsgate 6692 paid up early. All money directed to Billinghurst, I think
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Post by transo on Nov 25, 2015 19:00:44 GMT
Any ideas why 17694 (a perfectly normal A+ 60k SME loan) has 1% cash-back applied? I can't see any other loans by this borrower and it doesn't look to be having any difficulty filling (not that I'll bid at 6% for a 12 month loan, cash-back or no). Any ideas, or is it just a "technical error" - shortly to cause another "technical error" and re-listing, followed by complaints and re-instatement!?
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am
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Post by am on Nov 25, 2015 19:03:12 GMT
Ramsgate 6692 paid up early. All money directed to Billinghurst, I think It should be Billingshurst - Billinghurst is a district of Buenos Aires.
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nick
Member of DD Central
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Post by nick on Nov 25, 2015 19:11:53 GMT
Any ideas why 17694 (a perfectly normal A+ 60k SME loan) has 1% cash-back applied? I can't see any other loans by this borrower and it doesn't look to be having any difficulty filling (not that I'll bid at 6% for a 12 month loan, cash-back or no). Any ideas, or is it just a "technical error" - shortly to cause another "technical error" and re-listing, followed by complaints and re-instatement!? Probably because they assessed that auto-bid cash alone wouldn't be able to fill it and manual bidders aren't desperate enough to lend at 6%. There seem to apply 1% CB to most 12 month loans except for the very small ones. They have obviously mis-priced the short duration A+ loans and should just up the rate to say 7.8%-8%.
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Post by GSV3MIaC on Nov 25, 2015 22:04:01 GMT
The priced them deliberately low so they can advertise 'loans from 6% PA' to would-be borrowers (even though they might end up paying 18%PA + 4% fee). 6% is clearly pants, so they give some of the fee back to bring it up to slightly more reasonable 8%-ish.
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jayjay
Member of DD Central
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Post by jayjay on Nov 26, 2015 7:30:04 GMT
The priced them deliberately low so they can advertise 'loans from 6% PA' to would-be borrowers (even though they might end up paying 18%PA + 4% fee). 6% is clearly pants, so they give some of the fee back to bring it up to slightly more reasonable 8%-ish. True - but the evidence suggests that it would fill without the CB by autobid. The CB might (or in this case wont) attract active investors. So its application is wasted from FC's point of view. The logic is all very Financially Contorted.
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blender
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Post by blender on Nov 26, 2015 9:49:37 GMT
It is not always just the numbers. They may need to fill it more quickly that Autobid can alone, for example. There could be more lucrative follow-on business etc.
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Post by betterthanworking on Nov 26, 2015 10:24:40 GMT
My experiment with the earlier 6+1 shows that they do not sell as a par-flip. I won't be buying any more. Even tho' they are effectively a solo tranche, I suspect that many auto-bid users adjust settings to avoid them on the secondary market.
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Post by GSV3MIaC on Nov 26, 2015 10:50:26 GMT
The priced them deliberately low so they can advertise 'loans from 6% PA' to would-be borrowers (even though they might end up paying 18%PA + 4% fee). 6% is clearly pants, so they give some of the fee back to bring it up to slightly more reasonable 8%-ish. True - but the evidence suggests that it would fill without the CB by autobid. The CB might (or in this case wont) attract active investors. So its application is wasted from FC's point of view. The logic is all very Financially Contorted. But FC also has to attract lenders .. hence the 'get 7% on your money' ads. Any autobid lenders who opted for 'safe' (ho-hum) A+ only might not make it (7%+) without the cashback on the 6% loans (remember they have no way of opting out of those low rates, and just bidding on the 8%+ ones). I think the 6%+1%CB is FCs way of squaring this particular circle - 6% advertisable for borrowers, 7%+ advertisable for lenders, very minor dinge in profits, which they can probably claw back by no CB on 1st 8% tranche of property loans.
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Post by hj on Nov 27, 2015 10:07:21 GMT
Newest CB is for 17688 an estate agent which has been taken by surprise by "hidden asbestos" and "additional damp and timber repairs" at their new premises.
I am sorry but I had to laugh. Didn't anyone tell them about getting a surveyor in before signing?
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acky
Posts: 481
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Post by acky on Nov 27, 2015 10:21:06 GMT
Newest CB is for 17688 an estate agent which has been taken by surprise by "hidden asbestos" and "additional damp and timber repairs" at their new premises. I am sorry but I had to laugh. Didn't anyone tell them about getting a surveyor in before signing? The original loan to cover the relocation and fitting out was £194,000 - and now they need an extra £220,000 for these unforeseen costs! That sounds like a big problem, and a lot of money to spend on a 10-year lease.
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Post by betterthanworking on Nov 27, 2015 11:00:12 GMT
Newest CB is for 17688 an estate agent which has been taken by surprise by "hidden asbestos" and "additional damp and timber repairs" at their new premises. I am sorry but I had to laugh. Didn't anyone tell them about getting a surveyor in before signing? The original loan to cover the relocation and fitting out was £194,000 - and now they need an extra £220,000 for these unforeseen costs! That sounds like a big problem, and a lot of money to spend on a 10-year lease. They haven't stated so, but it looks like they intend to pay off the existing loan, leaving 31k over for the asbestos. The new rate is 0.3% higher than the previous one, but over 4 years, not three. I'll have a small bit of it on that assumption for flippage.
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am
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Post by am on Nov 27, 2015 11:33:12 GMT
The original loan to cover the relocation and fitting out was £194,000 - and now they need an extra £220,000 for these unforeseen costs! That sounds like a big problem, and a lot of money to spend on a 10-year lease. They haven't stated so, but it looks like they intend to pay off the existing loan, leaving 31k over for the asbestos. The new rate is 0.3% higher than the previous one, but over 4 years, not three. I'll have a small bit of it on that assumption for flippage. It's another "technical error" by FC - it's now stated that the proceeds will be used in part to pay off the previous loan.
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am
Posts: 1,495
Likes: 601
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Post by am on Nov 27, 2015 11:34:51 GMT
Newest CB is for 17688 an estate agent which has been taken by surprise by "hidden asbestos" and "additional damp and timber repairs" at their new premises. I am sorry but I had to laugh. Didn't anyone tell them about getting a surveyor in before signing? One could make the assumption that they did get a surveyor in, and ask why the surveyor's professional indemnity insurance doesn't cover the additional costs.
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acky
Posts: 481
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Post by acky on Nov 27, 2015 12:15:34 GMT
They haven't stated so, but it looks like they intend to pay off the existing loan, leaving 31k over for the asbestos. The new rate is 0.3% higher than the previous one, but over 4 years, not three. I'll have a small bit of it on that assumption for flippage. It's another "technical error" by FC - it's now stated that the proceeds will be used in part to pay off the previous loan. "Technical error"? I eagerly await the First Case of "human error" by the Fantastic Chaps at Failproof Corporation.
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