ptr120
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Post by ptr120 on Mar 9, 2018 17:16:27 GMT
Hi SophieThing I see that the loan has now been extended by a further week. I'm quite disappointed that the interest rate on this loan hasn't been increased as per another comparable loan that I previously pointed out. If the solution was 'just sell it on the SM' then I'd have a get-out, but at present that isn't an option. How are the interests of the borrower and lenders being balanced in this instance?
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keystone
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Post by keystone on Mar 9, 2018 17:44:51 GMT
The objective is to get this refinanced and funds back to lenders. I don't mind the current interest rate being charged as long as there is a genuine prospect of fulfilling the objective. Unfortunately, extension after extension doesn't instil much confidence that this won't fall through and the loan default. I think P2P platforms and borrowers have not cottoned on to the reality that lenders funds are not limitless and that having a huge proportion of lenders investments tied up in defaults is going to make the situation worse. I do wonder why rates charged to borrowers haven't increased when prospects for lenders have significantly deteriorated over the last few months?
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Post by eascogo on Mar 9, 2018 18:13:17 GMT
So basically, MT have failed to manage a simple 7 day extension. Makes you wonder how they get on with their long term loans. “It was only late in the night” on the penultimate day of the 7 day extension that they realised the loan wouldn’t complete on time. Top class loan monitoring, and another extension was given. So, here we are at the end of the next extension and MT have been surprised by another lender asking for an up to date valuation report. Quelle surprise, would MT have accepted an old VR? This is just yet another example of how poor MT are at managing property loans. You really need to get back to what you’re good at – pawn and cars. Property – you really need to do better or just get out of the market. OK, was a 1-month extension, just updated to an additional 1-week extension. MT have now to demonstrate their skill at managing recoveries. The quicker the better to reinstate trust.
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Post by MoneyThing on Mar 9, 2018 18:45:07 GMT
Evening, Thanks for your comments. hoy you’re entitled to your opinion of course, but I do think that is a little unfair. We’ve been managing this loan closely. We have been in contact with the borrower on a daily basis, asking for updates, asking for confirmation and 3rd party evidence that the re-fi is going to go ahead. We’re not in control of another lender’s decision making process and if they, during the course of their DD, decide they want more up to date information or have missed something during DD, then that is really outside of our control. In regards to extra interest on extensions, yes we take your point ( ptr120) and we’ve agreed to look at our polices on extensions. However, we’ve already agreed an extension process with this borrower. For a further week it will make £119 difference in interest based on a default rate, spread across all the lenders involved. It makes little material difference at this stage. Bear in mind lenders have already earned nearly £62,000 from this borrower on this loan and giving them a small amount of grace after an initial 18 month term is not that unreasonable. I realise that lenders are unhappy that the secondary market is not moving as fast as it usually does, but that is hardly the fault of this borrower. Much of what we do is a judgement call. It’s unlikely that all lenders will agree with every decision we make. The important point is that our decisions are considered and not random. The extensions given to this borrower are because we still believe that this refinance is the best way for us to get an exit for lenders. The other option is default and that is time consuming and expensive and to be avoided where possible. So it’s Friday night and perhaps this post is a bit longer than it should be. Regards, Ed
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Post by GSV3MIaC on Mar 9, 2018 20:25:40 GMT
But given what an Ed-thing ought to be earning, wouldn't it have been cheaper to pay the £119 from the chocolate fund, and kept the animals quiet? Just pondering out loud here ....
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Post by Badly Drawn Stickman on Mar 9, 2018 20:52:05 GMT
I suspect Moneything is not happy this loan has not repaid today themselves. Chances are that if it had the outstanding live loan would have filled before the deadline, which will probably cost them more than £119 if it doesn't and gets pulled.
Not my job to defend Moneything, but surely by now most of us know things don't always go according to plan. No winners on this one I think.
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ptr120
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Post by ptr120 on Mar 10, 2018 8:24:42 GMT
In regards to extra interest on extensions, yes we take your point ( ptr120 ) and we’ve agreed to look at our polices on extensions. However, we’ve already agreed an extension process with this borrower. For a further week it will make £119 difference in interest based on a default rate, spread across all the lenders involved. It makes little material difference at this stage. Bear in mind lenders have already earned nearly £62,000 from this borrower on this loan and giving them a small amount of grace after an initial 18 month term is not that unreasonable. I realise that lenders are unhappy that the secondary market is not moving as fast as it usually does, but that is hardly the fault of this borrower. Much of what we do is a judgement call. It’s unlikely that all lenders will agree with every decision we make. The important point is that our decisions are considered and not random. The extensions given to this borrower are because we still believe that this refinance is the best way for us to get an exit for lenders. The other option is default and that is time consuming and expensive and to be avoided where possible. So it’s Friday night and perhaps this post is a bit longer than it should be. Regards, Ed Hi Ed and thanks for the detailed reply. I'm pleased that you are looking at extension policies. As a lender, one of the things I'm looking for is certainty of repayment (and repayment date!), but accept that changes happen and it is not unreasonable for me to need to show some flexibility in terms of how long I'll be lending for. However, I think that my view on the interest rate was influenced by the handling of a previous loan in similar circumstances. The other implication of increasing the interest rate in a second or third extension is that it might help to focus the mind of the borrower, and it also might help to unblock the SM - some lenders will always chase the rate! I appreciate that some of this might be teaching you to suck eggs so I'll leave it there. Hope you have a good weekend.
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Post by MoneyThing on Mar 10, 2018 8:26:54 GMT
In regards to extra interest on extensions, yes we take your point ( ptr120 ) and we’ve agreed to look at our polices on extensions. However, we’ve already agreed an extension process with this borrower. For a further week it will make £119 difference in interest based on a default rate, spread across all the lenders involved. It makes little material difference at this stage. Bear in mind lenders have already earned nearly £62,000 from this borrower on this loan and giving them a small amount of grace after an initial 18 month term is not that unreasonable. I realise that lenders are unhappy that the secondary market is not moving as fast as it usually does, but that is hardly the fault of this borrower. Much of what we do is a judgement call. It’s unlikely that all lenders will agree with every decision we make. The important point is that our decisions are considered and not random. The extensions given to this borrower are because we still believe that this refinance is the best way for us to get an exit for lenders. The other option is default and that is time consuming and expensive and to be avoided where possible. So it’s Friday night and perhaps this post is a bit longer than it should be. Regards, Ed Hi Ed and thanks for the detailed reply. I'm pleased that you are looking at extension policies. As a lender, one of the things I'm looking for is certainty of repayment (and repayment date!), but accept that changes happen and it is not unreasonable for me to need to show some flexibility in terms of how long I'll be lending for. However, I think that my view on the interest rate was influenced by the handling of a previous loan in similar circumstances. The other implication of increasing the interest rate in a second or third extension is that it might help to focus the mind of the borrower, and it also might help to unblock the SM - some lenders will always chase the rate! I appreciate that some of this might be teaching you to suck eggs so I'll leave it there. Hope you have a good weekend. Acknowledged - we will review. Thanks ptr120. Have a good weekend. Ed.
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ptr120
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Post by ptr120 on Mar 16, 2018 12:32:48 GMT
Hi MoneyThing SophieThing Is this loan still on track to repay today? I had thought that the latest extension was due to end today but it would appear that is is in fact due to end tomorrow which would seem a little odd.
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ganymede
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Post by ganymede on Mar 16, 2018 18:39:05 GMT
Just seen an update, extended until the 21st at 18% from the 16th. See Support/Updates.
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ptr120
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Post by ptr120 on Mar 16, 2018 20:04:29 GMT
Hi MoneyThing if this drags on longer, is the intention that the borrower will continue to service the loan at the default rate on a monthly basis, or will interest continue to accrue to be repaid upon final settlement? Also thanks for listening to my previous moans about increasing the interest rate.
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Post by MoneyThing on Mar 16, 2018 20:22:36 GMT
Hi MoneyThing if this drags on longer, is the intention that the borrower will continue to service the loan at the default rate on a monthly basis, or will interest continue to accrue to be repaid upon final settlement? Also thanks for listening to my previous moans about increasing the interest rate. Evening. Whilst I really would not expect this to take any more than a few more days, if it was to go beyond the next monthly interest date (6th), then the expectation would be for the borrower to continue to service the loan on a monthly basis. Regards, Ed.
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ptr120
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Post by ptr120 on Mar 19, 2018 15:54:22 GMT
Hi MoneyThing should this loan not show the new higher interest rate? It is still showing 12%
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Post by MoneyThing on Mar 19, 2018 16:48:18 GMT
Hi. It is not currently possible from a technical perspective to simply amend the interest rate on a live loan, instead I will be adding on X number of days interest onto the loan when it redeems to equate to the higher rate of interest. Regards, Ed
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ptr120
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Post by ptr120 on Mar 20, 2018 19:31:49 GMT
Update on the site: The new lender is intending to refinance the loan tomorrow (21st). So if anyone wants to earn 18% overnight there is plenty of availability on the SM.
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