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Post by Deleted on Oct 25, 2016 12:48:15 GMT
The interest rate for investors have been cut by 25%, are saving stream also taking a 25% cut in fee's and interest? Now let me think........ There will also be introducers, lawyers, estate agents and surveyors somewhere in the deal is it likely?
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adrianc
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Post by adrianc on Oct 25, 2016 12:50:38 GMT
Is the owner of the BTL and less likely to run off into the sunset with the money then any other loan? Perhaps - but there's security in the form of the house. No, there's no guarantee of house prices in the future at all... Residential property is easier for many people to wrap their heads around, and something like this is fairly easy to value with a reasonable degree of certainty. Much easier than, say, a garden centre or pig farm... If you're looking at business assets, then they're markedly affected by whether you're looking at a going concern or not. Not quite so simple. The BoE base rate was cut by 25 basis points - from 0.5% to 0.25%. Many financial institutions have cut their rates. SS are extending their offering - in a way that they've been talking about for a very long while. There was even a poll here on cutting their rate, over a year ago... p2pindependentforum.com/thread/3149/far-savingstream-cut-interest-rates
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Post by 2wolfbag2 on Oct 25, 2016 13:05:24 GMT
9% on this platform appears derisory - I must admit when they were talking of introducing lower rate loans I figured there'd be a couple at 11% then maybe 10% and so on and so forth - if it had been pitched at 11% I personally would have been more tempted as instinctively I'd have figured that it MUST be 11% because it was a safer risk as well as there being a certain attraction about the lower value loans.
At 9% I gotta say this is a NO for me too but as the big red juicy pictured loan has proved - there'll always be takers and I have little doubt this'll be filled PDQ
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sam i am
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Post by sam i am on Oct 25, 2016 13:07:33 GMT
One could argue that residential BTL is lower risk than many of the other loans we see on SS. . . . Somewhere (I think in this forum) I read that disposing of residential buildings as a security can be more problematic. I am not sure if this is true. Can someone confirm or deny please? If it is so, then saying that it is lower risk might not take into consideration this. I was referring to the value that might be obtained rather than the process. In respect of the process I suspect that it would be more problematic if it was owner-occupied. Vacant or tenanted should be easier. But I'm no expert.
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treeman
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Post by treeman on Oct 25, 2016 13:12:18 GMT
Not for me just now .............
As a tiddler this will fill quite easily I imagine - quite possibly by some who have a default PF setting and haven't been paying attention !
A much bigger loan at lower %pa would be far more of an appetite test.
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dovap
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Post by dovap on Oct 25, 2016 13:14:45 GMT
new lower rate deilvered much as expected in terms of 'improved quality'
tbh
will still be snapped up obv.
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ianj
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Post by ianj on Oct 25, 2016 13:20:49 GMT
Perhaps detractors haven't noticed this in the VR..... " The borrower is an individual that has owned properties in the past." ....well that improves the security, doesn't it? Maybe not!  |
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sam i am
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Post by sam i am on Oct 25, 2016 13:22:56 GMT
One could argue that residential BTL is lower risk than many of the other loans we see on SS. While the LTV is still at 70%, the value should be known with a greater degree of confidence, so there is less chance that an enforced sale would not be able to repay the loan. And from Savingstream's perspective, this is a tiny loan so there is still likely to be demand even at 9%. Personally though, I believe I can find a better return on my money (10-11%) for similar risk. Hello MT. I'm not expert in this, not by a long shot, infact many would probably recommend I didn't invest in P2P going by the very little knowledge I have with this kind of thing. Is the owner of the BTL and less likely to run off into the sunset with the money then any other loan? Is the value of the BTL guaranteed to at least stay the same over the value of the loan? If I'm missing the reason why this Ian less risk can some one please let me know? To me, less risk mean less LTV meaning if the loan does default I am more likely to get my investment back. The interest rate for investors have been cut by 25%, are saving stream also taking a 25% cut in fee's and interest? In statistical terms I perceive the risk to be lower because the standard deviation of the potential sale price is lower than with an unusual and less easily valued property. Let's assume that the valuation is reasonable. Then it's probably quite unlikely (although obviously not impossible) that a forced sale would achieve less than 70% of the valuation. Reduce the price a bit below the true market level and there is bound to be good interest. Now consider an unusual property such as a disused quarry, an undeveloped site, maybe a garden centre. If the market turns bad, expected planning has been turned down, finance is difficult to obtain, local priorities have changed, national regulations are tougher, then it may be difficult to achieve any sensible price for the property.
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ilmoro
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Post by ilmoro on Oct 25, 2016 13:34:31 GMT
Havent read details but a Btl type loan would be 6-7% on AC & elsewhere
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Post by ladywhitenap on Oct 25, 2016 13:43:47 GMT
9% seriously...? top paying current accounts are giving 5%. That's my prefunding set at £0! Perhaps SS are planning to offer 1% cashback if it doesn't fill (effective 11% P/A) with a tax advantage. Please could you let us know where "top paying current accounts are giving 5%." LW
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Post by dualinvestor on Oct 25, 2016 13:45:26 GMT
Havent read details but a Btl type loan would be 6-7% on AC & elsewhere Whist that may be correct I think the sentiment here is that SS promised "better value" loan at a lower rate of interest and as far as most people can tell this is no different from previous loans that have traditionally offered 12% i.e. the new rate is a 25% discount for something substantially the same not better.
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izigor
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Post by izigor on Oct 25, 2016 13:45:38 GMT
The interest rate for investors have been cut by 25%, are saving stream also taking a 25% cut in fee's and interest? That is a good question. What is the deal here, Is SS trying to close demand with supply or are they being greedy? I'd prefer it's the latter because then I can hope there are or will be competition I can move or diversify with. If its the former, then it could be more work to find better places to move money to.
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ianj
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Post by ianj on Oct 25, 2016 13:46:22 GMT
9% seriously...? top paying current accounts are giving 5%. That's my prefunding set at £0! Perhaps SS are planning to offer 1% cashback if it doesn't fill (effective 11% P/A) with a tax advantage. Please could you let us know where "top paying current accounts are giving 5%." LW TSB for one, but not for much longer, I'm afraid.
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Post by ladywhitenap on Oct 25, 2016 13:54:26 GMT
Please could you let us know where "top paying current accounts are giving 5%." LW TSB for one, but not for much longer, I'm afraid. Yes Ian I was aware of TSB and their kind but not only are they due to be cut, they only paid out on pifflingly small balances. Lloyds, TSB, Halifax and Santander are all cutting drastically now or in the next few months. Several credit cards are cutting their cash rewards schemes too. Maybe 9% on SS does not look so bad after all.... LW
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dan83
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Post by dan83 on Oct 25, 2016 14:01:18 GMT
Please could you let us know where "top paying current accounts are giving 5%." LW TSB for one, but not for much longer, I'm afraid. Nationwide will give you 5% for 12 months on balances upto £2500 with a min pay in of £1000 per month. After 12 months it drops to 1%.
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