Pre-Funding Information

Depending on which AC loan kermie is referring to, one of the big differences between the AC loan and PBL007 could be the status of the property secured by the charge.  AIUI, if it's a private residence (as opposed to business premises) the rules/regulations/laws governing what hoops the charge holder has to leap through are very different and much more restrictive.

I don't expect it to happen, but if PBL006 were to default I expect that SS's experience/performance trying to deal with that would be very different from what happened with PBL007.

Go back a step. Don't look at the detail, but the bigger picture.

There is a long-standing imbalance of supply and demand. Just look at what happened when the last pre-pre-fund loans went live. The site broke, and a LOT of people complained they'd got zero. If a small loan goes live, it's inevitable that there's going to still be unmet supply - even if there's 1,000 of the 5,500 lenders stick their mitts up for a pre-fund, a £300,000 loan can ONLY ever spread to £300 per lender average. If every lender wants a bit, that's just over £50/each. If everybody pre-funds a grand on average, that's 5% of what you pre-fund. You can't say "Everybody gets a minimum £100 part", because that'd be nearly twice the total loan size.

So how does that imbalance get addressed?

Because there is no way to vary price on the SM, demand cannot be reduced that way. Would introducing premiums fix it? Or would it introduce a new problem, in the form of flippers?

So increase supply. Look at what happens when there's been a new big loan. The SM gets busy, and parts hang around a bit, because demand has been met. Look at what happened when supply outstripped demand significantly, in the aftermath of the launch of a whole raft of the early pre-fund loans, back in late September. The SM was groaning at the seams. There were days when the loan list on the old site was almost entirely green, with most loans having positive availability. And that was when the old site meant that demand could be more easily met by supplying short. Except SS say that they're getting all the loans of the right quality through that they can. Pipeline loans disappear because they've not met the acceptable standard. This is GOOD. If a loan's not good enough, I don't want it.

Yes, I could do all that DD myself (except, obviously, I can't, because I don't have access to all the info SS does), but I'd far rather invest through a platform that I can trust to do proper DD. SS have only had one go south (so far - touch wood), and the LTV and security meant that one was rescued. That, afaic, is a good thing, and if it means that demand outstrips supply, then that's a platform that's got a basically good long term prospect, so long as they don't muck it up by ill-judged "fixes".

Yep.

Coming soon - a toe-dip 10% loan?

Only if SS wish to kill the goose that's laying the golden eggs. One look at the relative lender demand that Ablrate are grappling with for loans at 12%+ and loans at 11%- should tell them everything they need to know.

Help! I've done something to my pre-funding options and now I can't amend anything. When I was changing the amount I wanted to invest on one of the loans, it asked as usual "are you sure you want to amend your pre-funding amount" and before clicking yes, I noticed the box inviting me to tick it if I didn't want to have this option again. I thought it would save me clicking my agreement every time. Now I can't change any amounts on any loans or even the default pre-fund amount. Can someone tell me how to undo it? Thanks.