j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188 
Likes: 540
|
Post by j on Apr 30, 2014 13:28:08 GMT
New loan @ 11% pa 2 yrs!
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Apr 30, 2014 15:26:45 GMT
... with a 20-year amortisation profile. Why bother to do that? It's effectively an interest-only loan. Why not make it one officially? Do people generally shy away from interest-only loans? I know I do. If it's being done for that reason, then I think that's a bit much.
|
|
|
|
Post by Ton ⓉⓞⓃ on Apr 30, 2014 15:39:53 GMT
Congrats j you've done it again. But there's no twinkling... Loans with this sort of profile remind me of stoozing where you move your balance from credit card to credit card as each zero percent offers end. I still need to actually read the write up so this is no comment on the loan itself, there's every chance I'll be invested but at the moment I'm just putting the axe to the sofa. |
|
alison
Member of DD Central
Sanctuary!!
Posts: 356 
Likes: 99
|
Post by alison on Apr 30, 2014 15:44:32 GMT
... with a 20-year amortisation profile. Why bother to do that? It's effectively an interest-only loan. Why not make it one officially? Do people generally shy away from interest-only loans? I know I do. If it's being done for that reason, then I think that's a bit much. I shy away from 20 year amortisation profiles too!!
|
|
|
|
Post by andrewholgate on Apr 30, 2014 16:35:53 GMT
I shy away from badgers. Riddled with TB apparently.
|
|
|
|
Post by jevans4949 on Apr 30, 2014 17:33:36 GMT
It's really just a long bridging loan. Depends whether the security is sufficient.
However, I just blew my balance on the aftermarket to get the cashback.
|
|
|
|
Post by batchoy on Apr 30, 2014 17:45:55 GMT
... with a 20-year amortisation profile. Why bother to do that? It's effectively an interest-only loan. Why not make it one officially? Do people generally shy away from interest-only loans? I know I do. If it's being done for that reason, then I think that's a bit much. It does not worry me, and I understand the reasoning. The borrower obviously would prefer to have conventional finance with a 20 year amortisation but cannot get it at the moment, they still want to continue paying off the capital during this short loan but can't afford to do it over just 2 years, so AC are modelling the loan suit. Where I do get uncomfortable is loans where the capital and interest are only paid at term
|
|
|
|
Post by Ton ⓉⓞⓃ on Apr 30, 2014 18:18:17 GMT
As jevans4949 said it's more a bridging loan. The term isn't completely clear to me, I imagine they can pay it off at any time? |
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Apr 30, 2014 18:31:36 GMT
Congrats j you've done it again. But there's no twinkling...  Thank you Sir!
|
|
|
|
Post by Ton ⓉⓞⓃ on Apr 30, 2014 18:35:07 GMT
As jevans4949 said it's more a bridging loan. The term isn't completely clear to me, I imagine they can pay it off at any time? I'm assuming six months minimum there after two months notice? andrewholgate...
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Apr 30, 2014 18:35:26 GMT
We all have different outlooks on loans & investment & that's fine if it individually suits our strategy. I personally don't mind the amortization length provided there is a monthly payment as opposed to a lump sum at loan end, it makes cash flow so much better.
Having had a quick read of report, my only concern here is if the borrowers garage business suddenly stopped trading, the repayments will be suddenly dependent on rents only which is a much closer shave than the two incomes combined together. Will have another thorough look later & see what's what
|
|
andy2001
Member of DD Central
Posts: 361
Likes: 34
|
Post by andy2001 on Apr 30, 2014 19:02:06 GMT
I personally don't mind the amortization length provided there is a monthly payment as opposed to a lump sum at loan end, it makes cash flow so much better. Monthly payment loans on Assetz Capital increase the effective interest rate. 1% a month for example if paid monthly and with the interest reinvested at the same rate with no delay ends up at about 12.68% per year.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Apr 30, 2014 21:52:41 GMT
I personally don't mind the amortization length provided there is a monthly payment as opposed to a lump sum at loan end, it makes cash flow so much better. Monthly payment loans on Assetz Capital increase the effective interest rate. 1% a month for example if paid monthly and with the interest reinvested at the same rate with no delay ends up at about 12.68% per year. Even better 
|
|
|
|
Post by mrclondon on Apr 30, 2014 22:21:28 GMT
The closing date / time has been amended to 23:55 today (in 35 mins time !) with the following explanation timestamped 23:55:
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on Apr 30, 2014 22:25:06 GMT
One miute this had over 6 days left to run, the next it was 30-odd minutes?! Has this been shortened on purpose?! If so, why?
|
|
Thank you Sir!
