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Post by jackpease on Oct 25, 2016 14:24:10 GMT
I think a lot of people are comparing 9% with 12%.... which is 'the past'. The present is tumbling rates and the platform still needs to turn a profit as do we.
Even at 9% those wanting a 'good quality loan' may be disappointed - if it was a good quality loan the banks/building societies would fund it at <5%.
I am sad at the growing negativity against SS despite being far better behaved than FC, having a far better record than Rebs/FK etc and having far better returns than others.
Yeh it ain't perfect but it seems that it gets it in the neck for having a risky loan book which may well not have nice comfortable answers to questions, and that is surely why we get/got 12%.
Jack P
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michaelc
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Post by michaelc on Oct 25, 2016 14:30:18 GMT
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%. I suspect a lot of folk here are investing portions of their life savings in order to generate an income or pension. An cap of 2.5k makes that kind of investment virtually irrelevant. Appreciate not all are in that boat and some may get excited about £125 per year.
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mikes1531
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Post by mikes1531 on Oct 25, 2016 14:30:40 GMT
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? 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. I'm no expert either, but when AC take residential property as security they tend to have a clause in the loan agreement that means the borrower cannot live in the property. AIUI, that's because the process of repossessing owner-occupied property is governed by different rules/laws, and those were put in place for consumer protection reasons. This apparently slows the process considerably, which is positive for the owner-occupier and negative for the lender. Hopefully someone who knows more about the subject can provide more info for us.
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Post by dualinvestor on Oct 25, 2016 14:39:45 GMT
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. I'm no expert either, but when AC take residential property as security they tend to have a clause in the loan agreement that means the borrower cannot live in the property. AIUI, that's because the process of repossessing owner-occupied property is governed by different rules/laws, and those were put in place for consumer protection reasons. This apparently slows the process considerably, which is positive for the owner-occupier and negative for the lender. Hopefully someone who knows more about the subject can provide more info for us. Generally it is difficult to gsin possession of a property if one wants to evict the current occupier. In Insolvency law there is an added impediment that should the debtor become bankrupt there is a general prohibition from obtaining vacant possession if his/her family live with him in the property, that lasts for 12 months before procedings can be started, so usually it would take c.15-18 months with an uncooperative debtor, even longer if they play the "oppressed by a financial institution" card (eg usuorious rates and oppressive terms etc) and get a sympathetic judge.
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Post by ladywhitenap on Oct 25, 2016 14:40:49 GMT
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%. OK But they don't give that to existing account holders of which I'm one. I get 0.95% for my 15+ year loyalty account. Maybe my position is a bit unusual I'm trying to protect, if not grow, the value of my pension cash lump sum for when his Lordship and I need care in our dotage. I've got 10% in asset backed P2P like SS,MT, Ablrate etc, £60k in Santander soon to be getting 1.5% (less £180 fees) pa ( not long ago this was 3% less £72 fees) and there rest spread across the stock markets some of which I'd love to get 5% on risk free. OK I'm in a fairly fortunate position but I want to maintain that degree of fortune into older age. Sorry I'll stop winging now! LW
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ablender
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Post by ablender on Oct 25, 2016 14:45:11 GMT
The way I see it is that P2P has an inherent risk if not for anything else due to the fact that we are in an emerging system, still evolving, with FCA regulations and may be others that will come up which have not settled yet . . .
All this places a minimum interest rate that I am ready to accept to part with my money, before I even start looking at the risk of the individual loan.
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guff
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Post by guff on Oct 25, 2016 14:56:11 GMT
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%.
Maybe my position is a bit unusual I'm trying to protect, if not grow, the value of my pension cash lump sum for when his Lordship and I need care in our dotage. I've got 10% in asset backed P2P like SS,MT, Ablrate etc, £60k in Santander soon to be getting 1.5% (less £180 fees) pa ( not long ago this was 3% less £72 fees) and there rest spread across the stock markets some of which I'd love to get 5% on risk free. OK I'm in a fairly fortunate position but I want to maintain that degree of fortune into older age. Sorry I'll stop winging now! LW What price loyalty? I just had another look at their current accounts and noticed the FlexPlus account gives 3% up to a trifling £2.5k but more importantly free European breakdown which is worthwhile and essential as one of my cars is in Spain for 11 months. I tried to change my existing FlexDirect account and the computer said "Flex off".
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Post by silvermachine on Oct 25, 2016 14:59:03 GMT
Won't be going for this one at 9%
Have also set prefunding to £0 as I don't want to be caught out in the future, by a quick launch of something similar
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ablender
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Post by ablender on Oct 25, 2016 14:59:37 GMT
. . .as one of my cars is in Spain for 11 months. Did you send it there for the MOT certificate or general service?
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Post by dualinvestor on Oct 25, 2016 15:03:42 GMT
I just had another look at their current accounts and noticed the FlexPlus account gives 3% up to a trifling £2.5k but more importantly free European breakdown which is worthwhile and essential as one of my cars is in Spain for 11 months. I tried to change my existing FlexDirect account and the computer said "Flex off". You might want to change that, if the car is in Spain for more than six months a year it should be on Spanish plates anyway and insured in Spain where the insurance rates are much lower and usually include breakdown caver free of charge, road tax much lower and MOT (ITV) regulations more relaxed (eg first inspection after 4 years then every 2 years) and less chance of being pulled over 
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guff
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Post by guff on Oct 25, 2016 15:26:12 GMT
Last year was the first year and it was only there for 6 months. Ironically the ABS controller packed up just before I drove back for the MoT test (booked for the 1st April), so I drove over the Pyrenees with red lights flashing on the dashboard warning me I was about to die. It's over there (out of sight, so most likely in France or Portugal ) now but will probably be replaced by a rag top mañana. The Lotus would be better over there, but hasn't got the luggage capacity that Mrs. Guff seems to require. |
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dan83
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Post by dan83 on Oct 25, 2016 15:33:51 GMT
I appreciate to the people who are investing loads of money, £2500 in Nationwide at 5% doesn't seem worth it.
not everyone has thousands save ready to invest.
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Post by ladywhitenap on Oct 25, 2016 16:09:55 GMT
OK But they don't give that to existing account holders of which I'm one. I get 0.95% for my 15+ year loyalty account.
Maybe my position is a bit unusual I'm trying to protect, if not grow, the value of my pension cash lump sum for when his Lordship and I need care in our dotage. I've got 10% in asset backed P2P like SS,MT, Ablrate etc, £60k in Santander soon to be getting 1.5% (less £180 fees) pa ( not long ago this was 3% less £72 fees) and there rest spread across the stock markets some of which I'd love to get 5% on risk free. OK I'm in a fairly fortunate position but I want to maintain that degree of fortune into older age. Sorry I'll stop winging now! LW What price loyalty? I just had another look at their current accounts and noticed the FlexPlus account gives 3% up to a trifling £2.5k but more importantly free European breakdown which is worthwhile and essential as one of my cars is in Spain for 11 months. I tried to change my existing FlexDirect account and the computer said "Flex off". Yes I have one of these but at a fee of £10 pcm is greater than the net interest even if kept full to the brim. But it does offer low cost insurance. I've yet to make a claim though. I did a trouble free transfer on line a couple of years back - maybe ping them a message? LW
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Post by ladywhitenap on Oct 25, 2016 16:13:11 GMT
I appreciate to the people who are investing loads of money, £2500 in Nationwide at 5% doesn't seem worth it. not everyone has thousands save ready to invest. Dan, I hope I did not cause any offence. It was not my intention. LW
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grahamg
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Post by grahamg on Oct 25, 2016 16:14:06 GMT
I shall try to contain my excitement. 70% LtV over a fairly unexciting, shabby, not exactly spacious 1960s BtL 3-bed semi (with PP to extend to 5) just south of Croydon. Or is it BtL? The valuer thought it was owner-occupied. They've seen a tenancy. But the applicant says it's vacant, honest. The closest comparable (July this year sale) suggests the LtV is more like 76%. Next door but one (detached) sold in January for £350k. This property is on the market with a Croydon agent for £525k currently (listed date on RM is 30th September). At 12%, I'd not exactly be feeling the love... At 9%? Yes the The tenancy agreement that they saw was from 24.10 2014 for six months Looks occupied to me in the photo's so is someone telling porkies here!
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