PBL59

Yes, I thought it was very attractive too.  A well progressed project and low LTV.  I didn't favour PBL072 as much (as a second charge) but it looks a whole lot better now!

Totally gutted largest position I had on SS and no where to go with money burning a hole. Unlike others could not bring myself to put money into PBL72 at the same rate on a 2nd charge so had all my eggs in the 59 basket looks like a mistake now !

P.s. not moaning it paid back just wish it had paid back on a day when another loan was launched plus it had about the lowest LTV of the whole SS book !

I'm in a similar position.  And I avoided PBL072 because it was a second charge.

savingstream:  Can you please explain to us why the first charge was paid off before the second charge?  (I would have thought that the normal procedure would be to pay off the second charge loan first.)  And why was the repayment not spread between the two loans as partial repayments, as you told us to expect?

I understand that if the property was sold PBL059 would get the first chunk of proceeds.  But if the borrower simply is paying off part of what they owe I would have thought that the normal procedure would be to pay off the second charge first. 

I suppose a lot depends on the agreement with SS.  Normally a second charge loan would be paying a higher interest rate, so it would be to the borrower's benefit to pay that loan off first.

In this case, I'd really like to learn why SS was expecting partial repayments of both loans and that didn't happen.  Was that the borrower's decision?  Or SS's?  I'm hoping to learn something that would guide my future SS investing.

That would be a possibility, except there's an update to PBL072 stating "Partial repayment is expected shortly."  So it looks to me as if SS were expecting any repayment to be spread across both loans.  That clearly hasn't happened, so I'm looking for further clarification from savingstream .  Is a further repayment imminent?

Presumably the money that's just been repaid has come from the proceeds of the sales of the completed student pods.  If that's the case, then we no longer should have security over those units because they're owned by someone other than the borrower.  I don't really know how this works in practice when units are sold as a project finishes, but I'm pretty sure SS no longer have as security all they had as security before any of the units were sold.  So in the current LTV calculation, we know how much the loan as been reduced by but we don't know how much the valuation has been reduced by and, as a result, we really haven't a clue what the current LTV is.

The above is just based on my understanding of the situation.  If I've got it wrong, I'd be pleased if someone would set me straight.

You won't earn much in interest per month, putting a penny into each loan Do the math.