cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Jun 11, 2016 15:00:32 GMT
I just had an e-mail from SS to confirm that they are considering offering lower rates on certain future loans. So what you think of that folks? Edit : Yes... of course I added a poll  |
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Post by pepperpot on Jun 11, 2016 15:08:09 GMT
Depends on the quality, would have to be much better imo. I'm happy in double figure territory - if I see an attractive 10%er, I'll bite, sometimes quite a big bite. (for me)
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jcb208
Member of DD Central
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Post by jcb208 on Jun 11, 2016 15:14:36 GMT
I Would be happy to invest in good quality lower LTV loans at around 10%.If people don't like the lower rates them they can invest only in higher risk 12% loans or elsewhere
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Post by geraldine1210 on Jun 11, 2016 15:25:32 GMT
Slightly lower for solid, steady, secure loans is fine.
I hope they don't go the other way and decide to dabble in higher risk/reward loans.
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oldgrumpy
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Post by oldgrumpy on Jun 11, 2016 15:29:18 GMT
Good quality secured loans i.e. for borrowers with solid backing (and background), requiring sub 60% LTV (preferably 50%) on sensible valuations will still interest me at 10%-11%, as they do on MT/Broadoak and AC (though AC seem to have mainly given up on 10%+ loans - some of their 7%-8% loans are way too low). Some of the current offerings* should be nearer 15%.
* edit ....on SS !
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baldpate
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Post by baldpate on Jun 11, 2016 15:29:34 GMT
Like the posters above, down to 10% for good quality. Less than that & I'll be thinking twice & looking elsewhere.
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Post by geraldine1210 on Jun 11, 2016 15:39:11 GMT
Just checked and no email received yet.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 11, 2016 15:42:30 GMT
Just checked and no email received yet. It wasn't a mass e-mail; it was in reply to an e-mail I sent this morning...
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Post by geraldine1210 on Jun 11, 2016 15:44:10 GMT
Just checked and no email received yet. It wasn't a mass e-mail; it was in reply to an e-mail I sent this morning... Thanks CD. As soon as I posted, I wondered if this might be the case.
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Balder
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Post by Balder on Jun 11, 2016 15:44:58 GMT
let us see what gets offered. I expect it will be the same at a lower rate and SS are doing it to achieve the growth that they want. This is the start of the diluting of their so far winning model. Shame but it was always going to happen!
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Post by GSV3MIaC on Jun 11, 2016 16:06:54 GMT
Yep, I'd object to <12% on the current stock .. I mean why would I, when there are 12% plus offering elsewhere with LTVs which are no less sane than the SS ones? Over on ABLRATE at the moment I see there is a 14% loan still not filled, and another (slightly less exciting IMO) not even off the blocks yet. Then there's MT .. OK, there are some sub 12% loans there too, but those look a bit less gung-ho than the SS pipeline (with some DFL exceptions at SS). Even Faintly Cheerful occasionally accidentally releases something halfway sensible for 14% (less fee!), or more.
I'd rather lose the somewhat opaque 'discretionary' PF, thanks, and stick with the 12% (or more).
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Post by dualinvestor on Jun 11, 2016 16:07:09 GMT
It would be interesting to know their REAL reasons (rather than the inevitable PR flummery that will come with the formal announcement). Will it be that they seem to get more than adequate demand at 12% so let's see what the floor is that we can get away with? Or are they are going to try and originate better quality propositions? On the evidence of PBL 20 and the graveyard I know where my money is, or rather isn't  |
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adrianc
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Post by adrianc on Jun 11, 2016 16:09:29 GMT
For me, SS would have to up their game. There's nothing in the current pipeline I'd take 10% on. And that's the whole reason, isn't it? They need to balance supply and demand. Currently, there's lots of demand from lenders. They're clearly having problems finding sufficient supply of borrowers willing to pay high enough interest, so quality's dropping slightly.
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sam i am
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Post by sam i am on Jun 11, 2016 16:25:30 GMT
If this means significantly increasing the supply of loans by additionally offering better quality loans where SS can't currently attract borrowers, then great.
If this means an increase in similar quality loans as now but some are at lower interest rates, then I'll probably rebalance my portfolio more towards MT.
10% is the least I would be interested in and these would have to be low LTV loans secured against assets which can be valued objectively.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jun 11, 2016 16:36:27 GMT
It stands to reason that the risk on every loan cannot be equal, so it makes sense to have variable interest rates. (SS may do this already by varying their margin.) The question is: Is SS's DD adequate to assess the relative risk, or will they offer lower rates just to undercut the competition?
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