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Post by scoobydoo on Apr 29, 2016 13:45:58 GMT
What are the the implications if/when SS becomes too popular. Will that be it's downfall?
It already has a liquid as cash SM. Hundreds are people are joining everyday. Soon pre-funding will be severely limited.
It will become increasingly difficult to invest/re-invest your total funds.
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nick
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Post by nick on Apr 29, 2016 14:04:26 GMT
What are the the implications if/when SS becomes too popular. Will that be it's downfall? It already has a liquid as cash SM. Hundreds are people are joining everyday. Soon pre-funding will be severely limited. It will become increasingly difficult to invest/re-invest your total funds. The obvious - rates will fall, simple supply & demand.
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locutus
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Post by locutus on Apr 29, 2016 14:08:15 GMT
What is the point of this thread? I have been ignoring the other ones that have popped up but there is already far too much useless chatter from people who don't know what they're talking about. I don't mean to cause offence OP but what are you hoping to achieve?
In answer to your question, SS have a tiny proportion of the bridging finance market and have a long, long way to grow yet.
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Post by scoobydoo on Apr 29, 2016 14:12:11 GMT
What is the point of this thread? I have been ignoring the other ones that have popped up but there is already far too much useless chatter from people who don't know what they're talking about. I don't mean to cause offence OP but what are you hoping to achieve? In answer to your question, SS have a tiny proportion of the bridging finance market and have a long, long way to grow yet. You what? What am I hoping to achieve? I am hoping for a discussion/answer to what I posted. So you just want experienced people who know everything to post. Good idea. Then you will have an empty forum. What are you hoping to achieve with your post?
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Jeepers
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Post by Jeepers on Apr 29, 2016 14:12:35 GMT
What are the the implications if/when SS becomes too popular. Will that be it's downfall? It already has a liquid as cash SM. Hundreds are people are joining everyday. Soon pre-funding will be severely limited. It will become increasingly difficult to invest/re-invest your total funds. The obvious - rates will fall, simple supply & demand. Can SS drop the rate on loans you've already committed to or just on new offerings?
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sam i am
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Post by sam i am on Apr 29, 2016 14:15:54 GMT
What are the the implications if/when SS becomes too popular. It's the implications if/when SS becomes unpopular that I am more concerned about.
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mikeh
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Post by mikeh on Apr 29, 2016 14:22:16 GMT
What are the the implications if/when SS becomes too popular. Will that be it's downfall? It already has a liquid as cash SM. Hundreds are people are joining everyday. Soon pre-funding will be severely limited. It will become increasingly difficult to invest/re-invest your total funds. The obvious - rates will fall, simple supply & demand. I don't think it is as simple as that. SS operates in a specialised segment of the bridging market. Its rates are set to ensure that it survives over the whole cycle in that market. I would be very surprised to see rate changes any time soon. SS oscillates between feast and famine all the time while maintaining a high growth rate. More investors means SS can arrange more and bigger loans which attract more investors. It's a chicken and egg thing.
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bloodycat
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Post by bloodycat on Apr 29, 2016 14:28:00 GMT
My main concern would be that they might be tempted to take on riskier loans to satisfy demand from investors.
I'm prepared to be patient when investing further funds, for which the current pre-funding system works reasonably well, with sufficient demand on the SM should I need to quickly free up a little cash if necessary.
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adrianc
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Post by adrianc on Apr 29, 2016 14:28:16 GMT
In answer to your question, SS have a tiny proportion of the bridging finance market and have a long, long way to grow yet. What are you hoping to achieve with your post? He was hoping that you'd read the last sentence and get your answer. A quick google suggests that the UK bridging finance market last year was around £4bn. www.mortgagestrategy.co.uk/on-fire-as-bridging-lending-reaches-4bn-how-much-further-can-it-grow/That would put SS's market share - based on £100m of outstanding loans - to around 2.5%.
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freddy
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Post by freddy on Apr 29, 2016 14:31:17 GMT
What is the point of this thread? I have been ignoring the other ones that have popped up but there is already far too much useless chatter from people who don't know what they're talking about. I don't mean to cause offence OP but what are you hoping to achieve? In answer to your question, SS have a tiny proportion of the bridging finance market and have a long, long way to grow yet. I also do not want to cause offence but surely if you don't like a particular thread you simply choose not to take part and respect those that do.
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Post by earthbound on Apr 29, 2016 14:34:10 GMT
It will be down to SS's loan book, can they keep the big loans coming to feed the appetite, they may well be growing their lender base, but if there's nothing to invest in then lenders will go elsewhere.
Take FS as an example, sometimes takes up to a week to fill an 800k loan, gone in seconds here. When the competitors to SS wake up and see what a successful model they have , then change will be inevitable and then the lenders will have other options just as good as SS's.
Long term? IMO.. SS have got miles to go before any of the banks sit up and take notice.
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Post by earthbound on Apr 29, 2016 14:38:46 GMT
And that's only the bridging market, as we have seen recently SS are moving slowly into the DFL market as well. How big is that? unfathomable i would guess.
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Liz
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Post by Liz on Apr 29, 2016 15:04:32 GMT
What are the the implications if/when SS becomes too popular. Will that be it's downfall? It already has a liquid as cash SM. Hundreds are people are joining everyday. Soon pre-funding will be severely limited. It will become increasingly difficult to invest/re-invest your total funds. This really is a "what if" question and you could ask hundreds of these types of questions and the situation may never happen. The sm may be liquid but it won't always be like that. SS could easily lauch a couple of big loans and then SS isn't popular enough. Any answers of dropping rates etc etc are all speculation, and SS don't have plans to drop rates, they are looking for growth.
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Liz
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Post by Liz on Apr 29, 2016 15:11:34 GMT
And that's only the bridging market, as we have seen recently SS are moving slowly into the DFL market as well. How big is that? unfathomable i would guess. And then there is the untapped subprime loans, and then they can package their debt and get into securitisation and derivatives and 100% loans, no doubt some new form of lending too.
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Liz
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Post by Liz on Apr 29, 2016 15:18:47 GMT
My main concern would be that they might be tempted to take on riskier loans to satisfy demand from investors. I'm prepared to be patient when investing further funds, for which the current pre-funding system works reasonably well, with sufficient demand on the SM should I need to quickly free up a little cash if necessary. This too is unlikely to happen IMO, riskier loans will cost SS in the short term riskier loans will mean SS will have to top up the provison fund more often, which would hit their bottom line, longer term riskier loans and defaults would undermine the whole business model. There is evidence that SS is avoiding some riskier loans, they do drop loans from the pipeline, pull out of some deals and choose not to provide development funding on some PBL's. This doesn't sound like growth at all costs.
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