shimself
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Post by shimself on Mar 16, 2015 13:13:14 GMT
There seems to be something which I can't see about the rates on Lendinvest There are some loans at low LTV with comparatively high rates, and some loans with worse LTV with lower rates. There are two loans at 63-65% LTV and another at 25% but they are all at 6% OK so LTV is not everything, but what else is affecting the rates on offer, does anyone know? anonymised table below:  |
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Steerpike
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Post by Steerpike on Mar 16, 2015 13:56:47 GMT
There seems to be something which I can't see about the rates on Lendinvest There are some loans at low LTV with comparatively high rates, and some loans with worse LTV with lower rates. There are two loans at 63-65% LTV and another at 25% but they are all at 6% OK so LTV is not everything, but what else is affecting the rates on offer, does anyone know? anonymised table below: Bigger loan, lower overhead percentage?
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shimself
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Post by shimself on Mar 16, 2015 14:09:06 GMT
Bigger loan, lower overhead percentage? That's not it, but thanks for trying 2.2M 41%ltv 7% 177K 47%ltv 5%
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Steerpike
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Post by Steerpike on Mar 16, 2015 14:30:25 GMT
Bigger loan, lower overhead percentage? That's not it, but thanks for trying 2.2M 41%ltv 7% 177K 47%ltv 5% Loan Percentage LTV 7125000 7.50 75.00 2200000 7.00 41.46 945000 6.00 63.00 404600 6.00 65.00 250000 5.50 14.04 217700 5.00 36.90 200000 6.00 25.28 177500 5.00 47.97 Only anomaly seems to be 200k which is a tranche B and so perhaps some costs shared with tranche A.
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shimself
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Post by shimself on Mar 16, 2015 15:33:03 GMT
I can't see the rate tracking the ltv here (nor the size)
5.00% 36.90% £217,700
5.00% 47.97% £177,500 ltv worse rate same
5.50% 14.04% £250,000 ltv better rate worse
6.00% 25.28% £200,000 ltv worse rate same
6.00% 63.00% £945,000 ltv worse rate same
6.00% 65.00% £404,600 ltv worse rate same
7.00% 41.46% £2,200,000 ltv better rate worse
7.50% 75.00% £7,125,000 ltv worse rate worse
the two biggest loans have the highest rate, the 2.2M loan has a very good 41%ltv but a high 7% rate
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shimself
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Post by shimself on Mar 25, 2015 16:12:09 GMT
and today we are offered 8.5% (a high mark for lendinvest) on 50% ltv.  ? |
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shimself
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Post by shimself on Mar 25, 2015 19:39:04 GMT
I've had some info from lendinvest which erm, adds to the mix
Some big loans are divided into two tranches, where tranche A would be repaid before B in the event of default. Kind of like a second charge but still a first charge they say.
In a current example
tranche A 1160K 26.5%ltv (so total 4377K)
tranche B 1000K 50%ltv calculated thus: (1000+1160)/4377
I'm suppose I'm trying to understand what the dangers are for B given the ltv is still sort of 50%. (In fact if it was a second charge I think you could say the ltv was 1000/(4377-1160) = 31% ).
Why would they split it into tranches?
What are the dangers (it's a conversion job, the 4377 is the purchase price for the land and building as bought, not the GDV)?
Thanks for any advice
Steve
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