ablender
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Post by ablender on Nov 4, 2015 14:48:59 GMT
Oh, that is why I managed to put a bid then.
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Post by fundingsecure on Nov 4, 2015 17:47:23 GMT
New loan tomorrow, Thursday 5th November at 11am Secured against Hublot watch valued at £9,000 Loan amount: £6,300 Interest: 12% pa LTV 70.0% £100 bid restriction for first 24 hours More detailsFundingSecure |
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jimbob
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Post by jimbob on Nov 5, 2015 11:02:01 GMT
Gone in about 20 seconds.
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Post by fundingsecure on Nov 5, 2015 11:19:00 GMT
New loan to be posted tomorrow, Friday 6th November, at 3pm. Secured by a second charge on a property in Nuneaton valued at £350,000. Loan Amount: £85,000 Interest: 12% pa Overall LTV 70.0% Bid restriction of £1,000 for the first 24 hours. More detailsFundingSecure |
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webwiz
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Post by webwiz on Nov 5, 2015 12:06:02 GMT
Does anyone know the procedure in the event of a default? Will Barclays have sole control or does FS have a say? If the former then Barclays are going to want their money back ASAP and will not be too concerned about a higher figure - will time be more important to them than maximising the return?
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mikes1531
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Post by mikes1531 on Nov 5, 2015 15:21:11 GMT
New loan to be posted tomorrow, Friday 6th November, at 3pm. Secured by a second charge on a property in Nuneaton valued at £350,000. The details released give no indication of the purpose of the loan or, probably more importantly, how the borrower intends to repay the loan. fundingsecure: What is the exit plan?
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spyrogyra
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Post by spyrogyra on Nov 5, 2015 17:06:28 GMT
The information provided is not enough imo. We are not informed what is Barclay's position in regards with the second charge. I took time to read the valuation report. It reports no evidence of insurance, title,no asbestos report. I came across many "we believe that..." , "we would advise..." and so on. In regards with the obligatory risk assessment the report states : Lenders
are advised to ensure that occupiers are required to obtain a Fire Risk Safety
Assessment which should be kept under review. Helloooo!!
Only a few years ago public houses were sold really cheap (smoking ban, social medias).
This pub is not a big one and I think the valuation is overly optimistic. I would say lenders should be rewarded with at least 14-15% having in mind the second charge.
So my question is:
Is FS, as well as some other p2p platforms, carelessly riding on the great demand which is outstripping supply?
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mikes1531
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Post by mikes1531 on Nov 5, 2015 18:09:25 GMT
Does anyone know the procedure in the event of a default? Will Barclays have sole control or does FS have a say? If the former then Barclays are going to want their money back ASAP and will not be too concerned about a higher figure - will time be more important to them than maximising the return? I was hoping that someone would have responded to webwiz's question by now, but we don't seem to have any volunteers. I have no experience in such matters, so the following probably is just rambling... The first charge holder is probably required to treat their customer fairly by selling the security for the best possible price, but I expect they'd still try to dispose of it ASAP rather than wait for a higher offer to arrive. The fact that the borrower is bound to be in arrears and incurring late charges and collection fees, etc., etc., means an earlier sale at a lower price could produce a better result for the borrower and/or FS than a later sale at a higher price. I'd expect FS to have some influence on the procedure, but possibly not an awful lot. I think FS could make up the arrears on the first charge so as to stop all the late charges and fees, but to do that they'd probably have to create a new loan on their platform so I don't know how feasible that idea really is. Perhaps fundingsecure would be willing to clarify the situation?
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ablender
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Post by ablender on Nov 5, 2015 18:33:56 GMT
A question related to first and secondary charges. If this borrower had to default the FS loan (secondary charge) but keeps paying barclays (first charge) what will happen? Can we sell the asset to recover the loan?
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webwiz
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Post by webwiz on Nov 5, 2015 18:45:44 GMT
A question related to first and secondary charges. If this borrower had to default the FS loan (secondary charge) but keeps paying barclays (first charge) what will happen? Can we sell the asset to recover the loan? We would have to buy out Barclays first I guess.
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webwiz
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Post by webwiz on Nov 5, 2015 19:26:05 GMT
Also an interesting (and slightly scary) PDF found by mrclondonWow thanks pp! After reading that I will never invest in a second charge that takes LTV over 50%.
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stevio
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Post by stevio on Nov 5, 2015 21:38:27 GMT
Also an interesting (and slightly scary) PDF found by mrclondonWow thanks pp! After reading that I will never invest in a second charge that takes LTV over 50%. Why?
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webwiz
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Post by webwiz on Nov 5, 2015 22:04:42 GMT
Wow thanks pp! After reading that I will never invest in a second charge that takes LTV over 50%. Why? Because it does not suit my risk:reward profile. But if you are happy with it that's fine by me. Each to his/her own.
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stevio
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Post by stevio on Nov 5, 2015 22:25:59 GMT
You'll struggle with FS then as most of their property loans seem to be around 70% and about a third 2nd charge
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ben
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Post by ben on Nov 6, 2015 1:35:07 GMT
You'll struggle with FS then as most of their property loans seem to be around 70% and about a third 2nd charge I agree so have very little on FS at the moment although this is more in the fact that I can't be bothered to sit around when loans come up and try to click with in 20 seconds
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