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Post by lolly88 on Oct 25, 2016 19:04:55 GMT
I think it's smart for SS to put out a 9% loan now. During a time where they have unleashed a huge loan and the secondary market is flooded with overdue loans and undesirables that people don't want. A lower percentage might encourage people to panic buy.
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SteveT
Member of DD Central
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Post by SteveT on Oct 25, 2016 19:14:45 GMT
Realistically, a loan of that size is likely to fill instantly on SS, even at 9%. But I've no interest (!) in loans like this on AC so I'm not about to start lending on them here either. I suspect they may prove rather harder to shift later via the SM too, for those that do partake.
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fasty
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Post by fasty on Oct 25, 2016 19:17:10 GMT
I think it's smart for SS to put out a 9% loan now. During a time where they have unleashed a huge loan and the secondary market is flooded with overdue loans and undesirables that people don't want. A lower percentage might encourage people to panic buy. ... or potter off back to Fumbling Circus who have had a choice of property loans at 10% recently
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Post by lolly88 on Oct 25, 2016 19:26:39 GMT
I think it's smart for SS to put out a 9% loan now. During a time where they have unleashed a huge loan and the secondary market is flooded with overdue loans and undesirables that people don't want. A lower percentage might encourage people to panic buy. ... or potter off back to Fumbling Circus who have had a choice of property loans at 10% recently Possibly but people are creatures of habit and undoubtedly...(well from anecdotal evidence) SS seems to be one of the most popular platforms so I doubt people will venture off elsewhere over this. Particularly when other platforms have been offering both lower and higher interest loans for a while. Most people will be using multiple platforms anyway and as others have pointed out 9% is still considerably better than offered by banks.
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dandy
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Post by dandy on Oct 25, 2016 19:30:54 GMT
I do love this forum but all these comments re 9% seem like hyperbole. what else are SS expected to do to gain more/better borrowers??
much more concerned about the possibility of owner/occupied on this loan which would make the loan unenforceable - be nice to know why the other lender didn't proceed
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Post by Icarus Unleashed on Oct 25, 2016 19:32:20 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. Agreed. The loan is not exactly blowing my socks off. I usually lend against the asset first and foremost. The fact that the borrower is primarily taking out the loan at >9% to allow time to sell the property does not sound like a fantastic exit plan to me. Question is why loans were not available to the borrower at a lower rate and whether cashflow is so weak and constrained that a >9% bridging loan makes sense. The main saving grace is that the property is in London which, I suspect, means that a buyer will be found eventually...
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ablender
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Post by ablender on Oct 25, 2016 19:40:43 GMT
I hope that savingstream read this thread to get a feel of the reactions for this loan. How many regular posters are there here? 50? How many are often in each loan? Just Shy of 2000? Are we reflective of the average invester or just a noisy minority? Most people, I would think, don't have the time or the inclination to read through all the whining, dad jokes or banana references to find the occasional nugget of information. (To be clear I like the dad jokes and banana references) ((and nuggets. I like nuggets too)) Excuse me, whining for you perhaps. Jokes, . . . of course
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Post by Icarus Unleashed on Oct 25, 2016 19:41:40 GMT
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.I certainly get excited about £125 a year! But then again, I like to chase every penny  I think there is quite an important point that is being touched upon here. If there is nothing for people to save or invest in then it will only add further risk to the entire system - that's an intended consequence of QE, pushing people out of lower risk assets such as bonds and savings accounts in the hopes that they will direct their funds towards more risky high-yielding / productive? assets (such as stocks and shares, property, investment in businesses etc...). The only danger is that the plan can end up seeming quite unfair. Those who own plenty of assets or have money to throw around taking punts left right and centre are likely to benefit. Whereas those with fewer savings probably are more concerned about capital protection and aren't so interested in dancing to the central banks' fiddles and piling on risk. *sigh* to think of the days when you could get 6% 'risk free' (or so we thought) in a savings account with Kaupthing Edge...
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Post by Icarus Unleashed on Oct 25, 2016 19:48:52 GMT
I hope that savingstream read this thread to get a feel of the reactions for this loan. How many regular posters are there here? 50? How many are often in each loan? Just Shy of 2000? Are we reflective of the average invester or just a noisy minority?Most people, I would think, don't have the time or the inclination to read through all the whining, dad jokes or banana references to find the occasional nugget of information. (To be clear I like the dad jokes and banana references) ((and nuggets. I like nuggets too)) I hate to say it but almost undoubtedly a noisy minority. Even someone with a moderate interest in P2P is unlikely to be engaging in the level of DD, analysis, scrutiny and thought leadership that I often see in this forum. Certainly not a bad thing though - if the platforms never receive any feedback other than investors voting shuffling with their feet it will take much longer to make improvements. Companies typically expend huge resources trying to work out what their customers want. Although P2P platforms are slightly different in that they essentially have two groups of customers (borrowers and investors) I'd say that the information produced on this forum is valuable and is providing the platforms with a useful service (all for free!).
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poppyland
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Post by poppyland on Oct 25, 2016 20:22:59 GMT
9% per annum works out at 9.381% p/a if it is paid and compounded monthly - a slightly cheering thought........But what a pity that the days of 12% p/a couldn't last for ever.
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Post by GSV3MIaC on Oct 25, 2016 20:26:59 GMT
much more concerned about the possibility of owner/occupied on this loan which would make the loan unenforceable - be nice to know why the other lender didn't proceed Ah but do Lendy know all about the wrinkles on that, I wonder? AC found out the hard way as I recall.
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ped
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Post by ped on Oct 25, 2016 20:35:46 GMT
With plenty on the SM it will be interesting to see how many go for this out of the box. I am going to pass.
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am
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Post by am on Oct 25, 2016 20:36:34 GMT
How many regular posters are there here? 50? How many are often in each loan? Just Shy of 2000? Are we reflective of the average invester or just a noisy minority?Most people, I would think, don't have the time or the inclination to read through all the whining, dad jokes or banana references to find the occasional nugget of information. (To be clear I like the dad jokes and banana references) ((and nuggets. I like nuggets too)) I hate to say it but almost undoubtedly a noisy minority. Even someone with a moderate interest in P2P is unlikely to be engaging in the level of DD, analysis, scrutiny and thought leadership that I often see in this forum. Certainly not a bad thing though - if the platforms never receive any feedback other than investors voting shuffling with their feet it will take much longer to make improvements. Companies typically expend huge resources trying to work out what their customers want. Although P2P platforms are slightly different in that they essentially have two groups of customers (borrowers and investors) I'd say that the information produced on this forum is valuable and is providing the platforms with a useful service (all for free!). A poll 6 months ago had 148 people indicating that they had investments in SS. (It's possible that some people were lying, but it's also possible that some forumites didn't participate in the pool.) SS seems to be running at about 2,000 lenders in each new loan. Round that up to 3,000 active lenders, as some will be picky, and others won't be rich enough to participate in each loan, and that has the forum as representing 5% of investors. That also matches my estimate from the same poll that the forum holds 5% (or more) of SavingStream's portfolio.
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Post by spareapennyor2 on Oct 25, 2016 20:41:22 GMT
i,m still trying to see how this pbl
matches the platform news 12/10
In order to increase the supply of high quality loans, we intend to begin offering investors the chance to invest in lower risk loans that will pay a lower monthly rate. This will allow us to offer lower cost finance to borrowers, which should feedback to a higher volume of even higher quality loan flow.
9% for 70% LTV
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Post by bracknellboy on Oct 25, 2016 20:46:17 GMT
much more concerned about the possibility of owner/occupied on this loan which would make the loan unenforceable - be nice to know why the other lender didn't proceed Ah but do Lendy know all about the wrinkles on that, I wonder? AC found out the hard way as I recall. Not knowing, and being caught out by 'errant' behaviour on the part of the borrower are two different things. I find it very difficult to believe that SS are not aware of the implications: that would be a huge red flag in general if they did not.
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