Property Loan - Cardiff - 1849282417

phil

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Property Loan - Cardiff - 1849282417 Apr 5, 2017 18:31:26 GMT elliotn likes this

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Post by phil on Apr 5, 2017 18:31:26 GMT

At first glance this looks like one of the better offerings at the moment, 14% and just under 60% LTV

What's puzzling is that the borrower is helping Yorkshire Bank run down their loan book by going to the expense of arranging
two bridging loans. One would have thought the borrower would simply transfer direct to Cambridge and Counties as and when
he is ready, after all it seems he is doing the Yorkshire Bank a favour so why rush to transfer with the expense of two bridging loans.

I don't know how many Yorkshire Banks there are but the Yorkshire Bank in the link below seems to be expanding their loan book:

9th paragraph: www.yorkshirepost.co.uk/business/updated-yorkshire-bank-owner-on-track-to-hit-financial-targets-1-8363626

ozboy
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Mine's a Large One! (Snigger, snigger .......)

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Property Loan - Cardiff - 1849282417 Apr 5, 2017 19:36:15 GMT elliotn likes this

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Post by ozboy on Apr 5, 2017 19:36:15 GMT

Potential for 18% would normally cause a whales feeding frenzy, which it hasn't, although I saw one baby whale @ £25K. Second charge too so not for me I'm afraid.

Also not sure I agree with the LTV, but as usual what do I know?!!

mikes1531
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Property Loan - Cardiff - 1849282417 Apr 5, 2017 21:02:16 GMT elliotn and phil like this

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Post by mikes1531 on Apr 5, 2017 21:02:16 GMT

Apr 5, 2017 18:31:26 GMT phil said:

At first glance this looks like one of the better offerings at the moment, 14% and just under 60% LTV

What's puzzling is that the borrower is helping Yorkshire Bank run down their loan book by going to the expense of arranging
two bridging loans. One would have thought the borrower would simply transfer direct to Cambridge and Counties as and when
he is ready, after all it seems he is doing the Yorkshire Bank a favour so why rush to transfer with the expense of two bridging loans.

I suspect it depends on how quickly YB are trying to run down their loan book. Since the borrower has a contract with YB, I suspect YB can't decide to call in the loan unilaterally, but there could be a clause in the contract allowing them to do that. If there isn't, and they really want to get out of the loan, they offer the borrower the opportunity to pay off the loan for something less than 100p/£ and that provides the incentive for the borrower to go elsewhere in a hurry. I've seen a number of AC loans where the borrower's previous lender has made them an offer they can't refuse.

Apr 5, 2017 19:36:15 GMT ozboy said:

Also not sure I agree with the LTV, but as usual what do I know?!!

I don't know any more than ozboy, but I suspect that Bath & West think it's overvalued as well. Otherwise, why wouldn't they be willing to lend at 59% LTV?

I suppose B&W could be ultraconservative lenders, but stopping at 44% LTV does seem to be a bit OTT.