|
|
Post by terminator on Oct 16, 2016 20:29:10 GMT
Depends - if we can use an ISA then we'll get better rate due to not paying tax on interest compared to current situation but otherwise yes will miss the extra 1%  |
|
ablender
Member of DD Central
Posts: 2,204 
Likes: 555
|
Post by ablender on Oct 16, 2016 21:49:54 GMT
Depends - if we can use an ISA then we'll get better rate due to not paying tax on interest compared to current situation but otherwise yes will miss the extra 1% ISAs are for us to get more income not for us to pass on those savings to the platform or the borrower.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 17, 2016 14:07:42 GMT
11% on all loans is going to be hard considering Lendy Ltd are now offering borrowers loans "from 0.4% per month". For 0.4% month on SS, I would expect a pretty good gold plated loan with a side plate of gold to go with it. to lend into that. Don't worry it will be loaded with a ton of fees. So they may end up paying 24% APR instead of 30%. I would think the FCA -- and the ASA -- would take a very dim view of advertising loans "from 0.4% per month" if the APRs do turn out to be more like 24%. And since I think SS need to charge APRs well into double-digits in order to keep their investors happy, I wouldn't expect the 0.4% adverts to continue very long.
|
|
|
|
Post by supernumerary on Oct 17, 2016 17:45:07 GMT
Popular 12% destinations seem to be ABL, C, FS, MT, SS, a few use BC, LC and REBS, and there are some 12% opportunities at TC. So for those that voted no to SS 11% loans, I wonder which platform would benefit. Interesting list of 12% destinations... The platform that benefits is IMHO, the one that prioritises its lenders and looks after them the best in the long term.
|
|
stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
Member is Online
|
Post by stub8535 on Oct 17, 2016 22:31:59 GMT
Polls are notoriously simplified into yes or no to a specific question. Classic example at fc when they asked about starting fixed rates on loans. Gold mine for some but detrimental to little investors. Imprecise question without caveats lead to unhappy lenders.
|
|
|
|
Post by Whitbourne on Oct 19, 2016 21:40:34 GMT
Polls are notoriously simplified into yes or no to a specific question. Classic example at fc when they asked about starting fixed rates on loans. Gold mine for some but detrimental to little investors. Imprecise question without caveats lead to unhappy lenders. Good point, well made. Can anyone else think of an important yet complex issue that was over-simplified into a binary choice without caveats, as if that were a sensible way to decide the question? I'm sure there must be a recent example...
|
|
fp
Posts: 1,008
Likes: 853
|
Post by fp on Oct 19, 2016 21:45:55 GMT
Polls are notoriously simplified into yes or no to a specific question. Classic example at fc when they asked about starting fixed rates on loans. Gold mine for some but detrimental to little investors. Imprecise question without caveats lead to unhappy lenders. Good point, well made. Can anyone else think of an important yet complex issue that was over-simplified into a binary choice without caveats, as if that were a sensible way to decide the question? I'm sure there must be a recent example... I seem to remember something around the summer time....
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Oct 29, 2016 15:48:57 GMT
I'd consider 11% loan (only) - as long as security/ltv etc was noticeably c10% less risky too.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Oct 29, 2016 18:15:34 GMT
I have a bad feeling that all sub £2m loans will be at 10%, sub £1m @ 9% and the rest will be at 11% very soon. We might start seeing 7-8% micro loans soon too.
|
|
|
|
Post by 2wolfbag2 on Oct 29, 2016 18:25:16 GMT
I think its called market demand -- if they can sell 'em at 4% then why not - if investors aren't happy they can move on - if they can't sell'em then they'll just have to up the rate - I personally like the general liquidity of SS - that's why I prefer it - the only interest SS have is selling on the original loan - the fact we all fight for scraps on the SM is mostly neither here nor there except for the effect it has on them shifting the new loans (which generally automatically will have longer loan terms and be more attractive for that reason)
|
|
|
|
Post by saraph on Oct 30, 2016 8:20:18 GMT
Luckily there seems to be great supply of 12% loans right now.
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Oct 30, 2016 10:59:03 GMT
Sub 10%
too much of a risk for me.
If one goes wrong, there can easily be losses, even if PF is taken into account as this is not guaranteed.
If this happens, I will revisit my position when I see how such loans are doing on the SM.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 30, 2016 19:32:02 GMT
Sub 10% too much of a risk for me. If one goes wrong, there can easily be losses, even if PF is taken into account as this is not guaranteed. The above raises an interesting question... Might the PF trustees decide to make more generous payouts for lower-rate loans that default than for higher-rate loans? That'd be one way to ensure that lower-rate loans really were lower risk, even if the LTV, etc., doesn't make them look any less risky.
|
|
spiral
Member of DD Central
Posts: 967
Likes: 486
|
Post by spiral on Oct 31, 2016 8:16:47 GMT
The above raises an interesting question... Might the PF trustees decide to make more generous payouts for lower-rate loans that default than for higher-rate loans? That'd be one way to ensure that lower-rate loans really were lower risk, even if the LTV, etc., doesn't make them look any less risky. I wondered if it might lead to a formal aim of the PF such as its aim is to cover the first say £100K of a loss. As you say, this would then make smaller loans more attractive as it would improve their "protected" LTV. A £350K loan on a valuation of 500K then becomes 50% LTV with PF rather than 70% without.
|
|
