shimself
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Post by shimself on Jun 1, 2016 21:41:06 GMT
There's a new loan starting tomorrow. 120K, secured by a first charge on a pub+flat+chalets with a restricted valuation of 425K (so LTV 28%) . Fine
And a debenture over the company
And an assignment over the rent for the pub 35K
And a means of forbidding directors loan payments
That seems like an awful lot of security; what can I infer?
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Post by parag on Jun 2, 2016 9:54:44 GMT
shimself If we weren't comfortable with any aspect of this loan we wouldn't have listed it. We requested a comprehensive security package for this loan and the borrower had no issues with it. We'd rather have too much security than not enough; I'd like to think our lenders would too.
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ben
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Post by ben on Jun 2, 2016 13:47:58 GMT
Looks a lot better loan then when comparing it to some others of similar rates, you can never have to much security.
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shimself
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Post by shimself on Jun 2, 2016 15:37:46 GMT
Looks a lot better loan then when comparing it to some others of similar rates, you can never have to much security. Well yes, very low LTV with additional layers of security, 10.5% 5 years. In one sense it feels like "too much of a good thing", but I trust Parag and he has a mortgage company behind him, so I'm in for a decent sum
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ben
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Post by ben on Jun 2, 2016 15:45:21 GMT
Looks a lot better loan then when comparing it to some others of similar rates, you can never have to much security. Well yes, very low LTV with additional layers of security, 10.5% 5 years. In one sense it feels like "too much of a good thing", but I trust Parag and he has a mortgage company behind I quite like FE to and looks a better option then then new SS ones tommorow I guess will wait and see what the MT offers with there tommorow before deciding which to have biggest chunk of. Already put a small amount in but will see what tommorow brings.
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shimself
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Post by shimself on Jun 2, 2016 15:48:39 GMT
Well yes, very low LTV with additional layers of security, 10.5% 5 years. In one sense it feels like "too much of a good thing", but I trust Parag and he has a mortgage company behind I quite like FE to and looks a better option then then new SS ones tommorow I guess will wait and see what the MT offers with there tommorow before deciding which to have biggest chunk of. Already put a small amount in but will see what tommorow brings. I went right off SS over this recent business of changing the deal unilaterally, so I'm out. 5 years at 10.5 is better than 6months at 12 I think
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ben
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Post by ben on Jun 3, 2016 12:42:21 GMT
Nice to see this one filling. Hopefully over weekend should finish it of. As with others I have about had my fill of SS so hopefully this will be one of many loans coming this way.
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jonno
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nil satis nisi optimum
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Post by jonno on Jun 3, 2016 13:23:54 GMT
Well done and thanks for this one parag. You really can't be criticised for "too much" security
Like others I have faith in you and your platform and will support this and such future offers.
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shimself
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Post by shimself on Jun 3, 2016 15:42:10 GMT
Just reverting to my original question, and more for educational purposes than feeding into a decision to lend
first charge 28% - on other platforms (say AC) that would be sufficient to earn 7 or 8%
Why would the director agree the additional: An assignment over the rent for the pub 35Kpa (where repayments are more like 27K) And a debenture over the company And a means of forbidding directors loan payments
I suppose I could imagine a bank asking for these additional safeguards just as a means of putting the squeeze on the business (not particularly for the loan more in the day to day operations so they can gouge more charges and so on, so they can in effect make it too painful for the customer to change banks),
and yes OK you can't have too much security,
but is there anyone here who can honestly say that in order to invest they would look for anything beyond the first charge at 28% ltv on a property in a good area. Why?
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Post by pepperpot on Jun 3, 2016 16:51:08 GMT
Just reverting to my original question, and more for educational purposes than feeding into a decision to lend first charge 28% - on other platforms (say AC) that would be sufficient to earn 7 or 8% Why would the director agree the additional: An assignment over the rent for the pub 35Kpa (where repayments are more like 27K) And a debenture over the company And a means of forbidding directors loan payments I suppose I could imagine a bank asking for these additional safeguards just as a means of putting the squeeze on the business (not particularly for the loan more in the day to day operations so they can gouge more charges and so on, so they can in effect make it too painful for the customer to change banks), and yes OK you can't have too much security, but is there anyone here who can honestly say that in order to invest they would look for anything beyond the first charge at 28% ltv on a property in a good area. Why? A good working relationship with a lender (platform in this case) might be easier for the borrower than starting a new relationship from distant shores. Speculation of course. I see risk/reward anomalies all over the place, usually on the negative side. This one seems to buck that trend. I was expecting the original 8% to come back higher but still sub 10%, maybe 10% on the nose at a push. It didn't take too long to decide I was staring at the mouth of a gift horse so I'm perfectly happy with my wad of fivers in it ...can't afford tenners. But still wondering if I should have a rummage down the side of the sofa (been nothing down the back for yonks, I keep checking occasionally) while it's still available, even though I've surpassed my previous expression of interest level.
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ben
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Post by ben on Jun 3, 2016 17:02:15 GMT
Might go for a second bite the SS offering was not that impressive and MT reapid one so might have a few more pennies looking for a new home before misses gets at them.
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Post by mrclondon on Jun 3, 2016 18:27:49 GMT
Hmm ... given this outburst of positivity, it looks as if it will be filled before parag has figured out how existing lenders who supported this loan at the outset despite its relatively unattractive 8% rate can be rolled forward.
I'm assuming for now that I'll have to find a home for that money on another platform once the first loan redeems.
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Post by parag on Jun 3, 2016 19:18:05 GMT
Hmm ... given this outburst of positivity, it looks as if it will be filled before parag has figured out how existing lenders who supported this loan at the outset despite its relatively unattractive 8% rate can be rolled forward.
I'm assuming for now that I'll have to find a home for that money on another platform once the first loan redeems.
mrclondon We will be reducing the loan request amount tomorrow by the amount of capital owed to lenders after the borrowers next repayment comes in on the 8th of this month. We'll also be emailing lenders asking them to inform us if they wish to rollover their capital repayment from Loan 1 into Loan 2. The ability to buy and sell loan parts in Loan 1 will also be suspended on Monday. Hope the money will not be forced to find a new home.
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Post by parag on Jun 3, 2016 19:33:34 GMT
Just reverting to my original question, and more for educational purposes than feeding into a decision to lend first charge 28% - on other platforms (say AC) that would be sufficient to earn 7 or 8% Why would the director agree the additional: An assignment over the rent for the pub 35Kpa (where repayments are more like 27K) And a debenture over the company And a means of forbidding directors loan payments I suppose I could imagine a bank asking for these additional safeguards just as a means of putting the squeeze on the business (not particularly for the loan more in the day to day operations so they can gouge more charges and so on, so they can in effect make it too painful for the customer to change banks), and yes OK you can't have too much security, but is there anyone here who can honestly say that in order to invest they would look for anything beyond the first charge at 28% ltv on a property in a good area. Why? A good working relationship with a lender (platform in this case) might be easier for the borrower than starting a new relationship from distant shores. Speculation of course. I see risk/reward anomalies all over the place, usually on the negative side. This one seems to buck that trend. I was expecting the original 8% to come back higher but still sub 10%, maybe 10% on the nose at a push. It didn't take too long to decide I was staring at the mouth of a gift horse so I'm perfectly happy with my wad of fivers in it ...can't afford tenners. But still wondering if I should have a rummage down the side of the sofa (been nothing down the back for yonks, I keep checking occasionally) while it's still available, even though I've surpassed my previous expression of interest level. I agree, but not having asked the borrower I can't say definitely. I also strongly agree with your second point. (This is a personal view / statement and should not be construed as advice or a recommendation). Thanks for the support!
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Post by mrclondon on Jun 8, 2016 15:46:09 GMT
And its still not clear to me how the roll forward of my funds from the first loan into this one which I requested in response to FE's email on the subject is going to happen. Unless some of the earlier bids are dummy bids by FE to reserve space, there now is insufficient capacity for the majority of loan 1 lenders to roll forward.
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