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Post by fundingsecure on Nov 26, 2015 17:18:58 GMT
We have been approached by one of our regular brokers with a large potential loan.
The full details would be available if the loan were to go ahead, but at this stage we are simply looking for an indication of whether our investors could provide sufficient funds.
The loan would be for £6m, secured by a legal charge against property valued at £30m. There is an existing charge of £2.5m, which would have equal priority (pari passu) with our charge.
The resultant LTV would therefore be 28.3%.
Base Interest would be at 12% pa
Bonus Interest would be payable as follows:
Bids of £50,000 +2% = 14%pa
Bids of £100,000 +3% = 15%pa
Bids of £250,000 +5% = 17%pa
As this loan is substantially larger than anything funded to date we would like to get an indication as to the level of interest before going any further..
If you would potentially be interested in investing or underwriting a minimum of £50,000 please advise by email, with an indication of the maximum you might consider investing.
Term would be 6 months and borrower is looking to complete the deal within 2 weeks.
FundingSecure
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stevio
Member of DD Central
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Post by stevio on Nov 26, 2015 18:35:43 GMT
Is this the cancelled MT loan?
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Post by xyon100 on Nov 26, 2015 19:01:14 GMT
Is this the cancelled MT loan? Cancelled MT loan? That sounds iffy.
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bob76
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Post by bob76 on Nov 26, 2015 19:01:21 GMT
£50K minimum investment, on a single loan.
No thanks!
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Nov 26, 2015 19:05:44 GMT
£50K minimum investment, on a single loan. No thanks! There's nothing about a minimum investment - £50K's the minimum that would enable you to get extra rates of interest. You could still invest a normal amount and get 12% on it if it went ahead.
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SteveT
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Post by SteveT on Nov 26, 2015 19:07:59 GMT
The figures given are completely different from those connected with the loan that MT was trying to fill.
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bob76
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Post by bob76 on Nov 26, 2015 19:10:29 GMT
There's nothing about a minimum investment - £50K's the minimum that would enable you to get extra rates of interest. You could still invest a normal amount and get 12% on it if it went ahead. Wrong. FS has confirmed to me that the minimum investment will be £50K per investor. Good luck with that!
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Post by xyon100 on Nov 26, 2015 19:16:39 GMT
The email mentions the base interest at 12 percent. Not sure why they would do that if they were only accepting 50K as a minimum? Anyway, having that much in one loan goes against all sound practice, for me at least. I guess if you have millions invested it might be another story. Not saying never, but this would have to be a rock solid loan for me to consider it.
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ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Nov 26, 2015 19:17:56 GMT
There's nothing about a minimum investment - £50K's the minimum that would enable you to get extra rates of interest. You could still invest a normal amount and get 12% on it if it went ahead. Wrong. FS has confirmed to me that the minimum investment will be £50K per investor. Good luck with that! I guess there will be a fair few interested all the same - with that amount of money to invest they likely wouldn't be bothered by it being potentially tied up ad infinitum in the case of a messy default. I wonder if it would be posted on the platform in this case - would be interesting to see, if it were, so we would be able to see updates etc. Seems a little odd not to keep aside a £50K chunk for mere mortals to invest in it if they so wished.
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Post by fundingsecure on Nov 26, 2015 19:18:50 GMT
Correction.
There would not be a minimum amount to invest.
At this stage we are only looking to hear from investors who might be willing to invest £50k or more - to see the feasibility of funding such a large loan.
If the loan does go ahead it would indeed be posted on the site and investments of any size would be permitted, indeed encouraged!
FundingSecure
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nick
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Post by nick on Nov 26, 2015 20:13:09 GMT
Correction. There would not be a minimum amount to invest. At this stage we are only looking to hear from investors who might be willing to invest £50k or more - to see the feasibility of funding such a large loan. If the loan does go ahead it would indeed be posted on the site and investments of any size would be permitted, indeed encouraged! FundingSecure When would the bonus interest be payable, i.e. is it payable on completion or at least accrues to original subscriber? How long is the term of the loan - the bonus is shown as a pa amount so I assume 12 months?
Underwriting £250k to flip into the SM could be interesting, but only if the bonus remains payable to the initial subscriber.
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SteveT
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Post by SteveT on Nov 26, 2015 20:29:10 GMT
Bonus interest is paid on completion of the loan, along with the normal interest (all FS loans are 6 months and I understand this one is too). The SM help page states that bonus interest is only paid to the orginal lender and only on the sum they still own at the end.
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oldgrumpy
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Post by oldgrumpy on Nov 26, 2015 21:16:47 GMT
No good for pi**ed off AC underwriters wanting to migrate for a while, then.
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nick
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Post by nick on Nov 26, 2015 22:54:27 GMT
Bonus interest is paid on completion of the loan, along with the normal interest (all FS loans are 6 months and I understand this one is too). The SM help page states that bonus interest is only paid to the orginal lender and only on the sum they still own at the end. If it is 6 months, they need to be more careful and precise on how they describe their returns as in the email (and above) they state them to be additive when quoting the overall return figures. Paying the bonus at redemption may attract large long term investors, but not underwriters which I though was the primary motive of setting up the SM. I believe that they could the loan away at a lower cost by lowering the qualifying investment levels and reducing the bonus amounts, but paying the bonus on completion. They would have an army of small/medium underwriters to get the loan away. But their pricing seems to be pushing to have fewer, larger investors - maybe to minimise administrative burden, which is fine if they think they can get the loan away.....
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ablender
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Post by ablender on Nov 26, 2015 23:07:02 GMT
So if I understand this properly, someone with very deep pockets can lend a large sum, get a lot of interest. Then sell this on the SM, perhaps at a premium and get someone like me to pay his/her tax. Nice...!
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