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Post by mrclondon on Nov 26, 2015 18:55:40 GMT
Never mind the stamp duty, what about the derisory rate of 9% for a 9 month bridge. Not for me But my question on the loan has revealed the default rate will be 13%. So how long will it have to be in default before the pain of 9% for 9 months is worthwhile ?
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agent69
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Post by agent69 on Nov 26, 2015 19:03:29 GMT
Never mind the stamp duty, what about the derisory rate of 9% for a 9 month bridge. Not for me But my question on the loan has revealed the default rate will be 13%. So how long will it have to be in default before the pain of 9% for 9 months is worthwhile ? Buy a loan in the hope that it will default? The only useful thing I ever learnt from Farting Copiously was that at the first whiff of trouble get shot of it.
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pikestaff
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Post by pikestaff on Nov 26, 2015 22:20:36 GMT
True for most types of lending but not necessarily for bridges. Late repayment of bridges is routine and not to be worried about provided the borrower is servicing the interest. (Assuming the default interest is enforced.) The time to get worried is if the interest rolls up for an extended period.
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duck
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Post by duck on Nov 27, 2015 6:32:14 GMT
But my question on the loan has revealed the default rate will be 13%. Moons ago divorce left me with a bridging loan ... basic rate 26%. After 2 months the house hadn't sold and the bank manager told me the rate was now 36% ..... how times have changed!
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jjc
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Post by jjc on Nov 27, 2015 12:53:05 GMT
Moons ago divorce left me with a bridging loan ... basic rate 26%. After 2 months the house hadn't sold and the bank manager told me the rate was now 36% ..... how times have changed!
Times have changed indeed. Those accustomed to the rates (to date) on BL’s available via many of the popular P2P sites frequented by forumites may be missing a good part of the market which is pricing at around 0.5%/month (or lower). I guess AC are expanding their offer closer to these segments too as part of the inevitable drive to scale. No problems with that particularly as a future shareholder (others have built a very successful business on this already), although I personally wouldn’t be unhappy if they also continue to service the higher yield niches in the bridging market.
Ofcourse low rates whilst hopefully being an indication of lower risk are no guarantee. And the documentation provided doesn’t always make that crystal clear. Some questions posted on Q&A.
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agent69
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Post by agent69 on Nov 27, 2015 14:09:21 GMT
Loan 173 (possibly the least wanted loan on the platform) has had about £365k on the SM since god knows when. It has just gone down to £275k.
Anyone know where the £90k suddenly went?
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Post by lynnanthony on Nov 27, 2015 16:27:53 GMT
215 has drawn down
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oldgrumpy
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Post by oldgrumpy on Nov 27, 2015 16:28:51 GMT
... and has so far allocated me £0.00  Gremlins?? Ah! £349.76  Correction, £250.23  |
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mikes1531
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Post by mikes1531 on Nov 27, 2015 16:33:22 GMT
But my question on the loan has revealed the default rate will be 13%. Moons ago divorce left me with a bridging loan ... basic rate 26%. After 2 months the house hadn't sold and the bank manager told me the rate was now 36% ..... how times have changed! The rate to the borrower will be greater than that. Aside from the up-front fees that increase their APR, AC generally are paid an ongoing loan monitoring fee -- 1-2% p.a.? -- and I believe that also increases in a default situation.
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mikes1531
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Post by mikes1531 on Nov 27, 2015 16:37:11 GMT
... and has so far allocated me £0.00 Gremlins?? Ah! £349.76 Correction, £250.23 £250.23 for me too.
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mikes1531
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Post by mikes1531 on Nov 27, 2015 16:42:42 GMT
#210 is now showing 'Underwriting Called'. With an estimated drawdown of 4/Dec.
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Post by Deleted on Nov 27, 2015 17:19:18 GMT
#218 going to draw down today, really excited, just waiting to see if when they hit the clock.....
I can imagine them beavering away, people leaving the office but still they work on. Yeah going to be great.....
7:45pm, still excited, website still clear the draw down is on for today.
Edit
Saturday morning: Oh no (imagine female newcastle accent), David, the cows have got into the kale! AC fluff it again!
Next week, in the Archers we go to Manchester to meet...... drones on.
Finally Monday afternoon it closes, not a phrase that includes "sorry" from AC
If I wanted a beer in a bar and I was told come back tomorrow, I might bother but not if they actually meant 3 days away, and didn't tell me.
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Post by Ton ⓉⓞⓃ on Nov 27, 2015 17:46:38 GMT
Loan 173 (possibly the least wanted loan on the platform) has had about £365k on the SM since god knows when. It has just gone down to £275k. Anyone know where the £90k suddenly went? I bought some 24th Nov 2015 at 02:48 with a 3% discount, but nothing like 90k...
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Post by crabbyoldgit on Nov 28, 2015 6:48:31 GMT
217 and 218 do not seem to have drawndown yesterday as i expected anybody any idea why or have i had a senior grumpy moment and got it all wrong.
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Post by Deleted on Nov 29, 2015 14:36:35 GMT
And all they have to do is develop an understanding in process management in these solicitors as to what is expected of them? It isn't rocket science, it's people management and contact control.
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