PBL065 Development site with OPP, Shropshire DEFAULT

Fair enough Rose, but wait till you try and buy something, 12 unsuccessful attempts so far, the old site might have had its problems the overdrawn balances used to work their way through. I wonder if I will ever be able to buy in the SM again !

I know, and I do sympathise.  This would have been particularly bad as it was a small loan, and relatively little would have been needed to be sold to cover.  Also, coming after a period of famine, more people were likely to be wanting to add the funds to cover rather than sell.  I would imagine once the sausage machine gets going again, and there are larger loans to cover, more will go up for sale and it will become easier.

Not likely I'll be trying to purchase much if anything on SM - I'm happy to keep the diversification going by participating in new loans on a regular basis - and I would be even if I had new money to go in.  I'm a patient sort on the whole.

just seen the original post and was 80k not 60k. that's an enormous amount of a new loan to be sold down by investors on the same day when pre funding allocation was around the 31% mark.

savingstream - were you holding back to ensure an active SM?  If so, are you likely to do the same in the future?

I am totally confused now! 

If there were so many pre-bids that allocation was necessary, where could the £60-80k have come from?  It has been suggested that someone could have put in a very large pre-bid -- maybe £200k? -- and then released their excess allocation, but I thought SS had abandoned their initial plans to prorate all pre-bids by the same percentage and had decided instead to allocate everyone the same amount (up to the level of their pre-bid, of course) so as to stop investors from inflating their pre-bids in an effort to obtain what they really wanted despite allocation.

savingstream:  Can you please tell us how the loan parts were allocated to the various pre-bids made?  It also would be helpful to know where the £60-80k released later came from, but I'm most concerned about understanding the allocation process.

In the meantime, while waiting for info from SS, would others please indicate how their allocation compared to their pre-bid?  Did everyone get the same percentage?  Or did everyone get the same amount?

It's my understanding that SS still uses the pro-rating method.  With loans below £500k they will limit the maximum bid to £20k. (I note that the current pipeline loan below this amount allows a higher bid to be set, but maybe they will cap it during the allocation process).

For an over funded loan everyone gets the same % of their pre-bid - around 31% in this case. If undersubscribed everyone gets 100%. If the loan is less than £500k and oversubscribed pre-fund bids are restricted to receive a maximum of £20k, then and allocated proportionally for everyone bidding less.  You can pre-fund up to £250k. There is no conspiracy here I think someone had a very big pre-bid and sold some off. HTH.

In Edit - I think I may not have expressed that clearly so amended.