mw
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Post by mw on Jul 31, 2020 6:30:44 GMT
Update provided,mildly optimistic with 50% interest being paid, lets hope time lines are kept to. When they say 50% interest do they mean the ongoing monthly payment being 50% or is there backpay they owe us of lost months interest? I've lost the plot with MT loans!
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Post by queenvictoria on Jul 31, 2020 10:08:50 GMT
Update provided,mildly optimistic with 50% interest being paid, lets hope time lines are kept to. When they say 50% interest do they mean the ongoing monthly payment being 50% or is there backpay they owe us of lost months interest? I've lost the plot with MT loans! I have presumed that the remaining 50% of interest will accrue and then become payable on refinance. What amazes me is that borrowers like this, who are unable to meet current finance payments, are acceptable to new lenders. The new lender will surely expect that 100% of interest payments are made 100% of the time. I suppose it is possible that the rate charged will be lower on the new finance but I would have thought that mainstream lenders would be unlikely to entertain such a borrower meaning it must be a non-mainstream lender offering to lend at mainstream rates but on non-mainstream lending conditions. Doesn't stack up for me.
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Jaydee
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Post by Jaydee on Jul 31, 2020 10:12:15 GMT
Don't get your hopes up. MT like the Scotland football team have a record of snatching defeat out of the jaws of victory.  |
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criston
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Post by criston on Jul 31, 2020 12:59:23 GMT
When they say 50% interest do they mean the ongoing monthly payment being 50% or is there backpay they owe us of lost months interest? I've lost the plot with MT loans! I have presumed that the remaining 50% of interest will accrue and then become payable on refinance. What amazes me is that borrowers like this, who are unable to meet current finance payments, are acceptable to new lenders. The new lender will surely expect that 100% of interest payments are made 100% of the time. I suppose it is possible that the rate charged will be lower on the new finance but I would have thought that mainstream lenders would be unlikely to entertain such a borrower meaning it must be a non-mainstream lender offering to lend at mainstream rates but on non-mainstream lending conditions. Doesn't stack up for me. That point makes me sceptical. If you are serious about refinancing, keep up your payments. Get it auctioned off pronto.
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picnicman
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Post by picnicman on Jul 31, 2020 13:19:46 GMT
When they say 50% interest do they mean the ongoing monthly payment being 50% or is there backpay they owe us of lost months interest? I've lost the plot with MT loans! I have presumed that the remaining 50% of interest will accrue and then become payable on refinance. What amazes me is that borrowers like this, who are unable to meet current finance payments, are acceptable to new lenders. The new lender will surely expect that 100% of interest payments are made 100% of the time. I suppose it is possible that the rate charged will be lower on the new finance but I would have thought that mainstream lenders would be unlikely to entertain such a borrower meaning it must be a non-mainstream lender offering to lend at mainstream rates but on non-mainstream lending conditions. Doesn't stack up for me. - you may be right and the update could be written more clearly, but just my take in that this is the same as the last payment of interest to lenders, i.e. the borrower is paying 50% of the monthly interest each month and as MT's system cannot cope with this, lenders will get paid one month's interest every two months. Falling into more arrears yes and all arrears owing to be all paid at refinance. We do not know what the party doing the refinance is? They may well be a developer who is simply buying out the existing borrower and then providing/sourcing the development capital and therefore the performance of the existing borrower is irrelevant. As I say, just my take for what it is worth!! Cheers P
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Post by queenvictoria on Jul 31, 2020 13:24:38 GMT
I have presumed that the remaining 50% of interest will accrue and then become payable on refinance. What amazes me is that borrowers like this, who are unable to meet current finance payments, are acceptable to new lenders. The new lender will surely expect that 100% of interest payments are made 100% of the time. I suppose it is possible that the rate charged will be lower on the new finance but I would have thought that mainstream lenders would be unlikely to entertain such a borrower meaning it must be a non-mainstream lender offering to lend at mainstream rates but on non-mainstream lending conditions. Doesn't stack up for me. - you may be right and the update could be written more clearly, but just my take in that this is the same as the last payment of interest to lenders, i.e. the borrower is paying 50% of the monthly interest each month and as MT's system cannot cope with this, lenders will get paid one month's interest every two months. Falling into more arrears yes and all arrears owing to be all paid at refinance. We do not know what the party doing the refinance is? They may well be a developer who is simply buying out the existing borrower and then providing/sourcing the development capital and therefore the performance of the existing borrower is irrelevant. As I say, just my take for what it is worth!! Cheers P Yes, picnicman, a buy-out rather than a re-refinance would make more sense but the update does say 'refinance' and it says '...a new lender has agreed to refinance the loan and provide the development finance for the whole project'. Beats me who might offer this and how they can do it on terms the borrower can afford to repay when there is no mention of his income increasing, or at least not until the project is built out.
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criston
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Post by criston on Jul 31, 2020 13:51:35 GMT
If they had not gone into administration, I would have bet on a refinance with Funding Secure. They always managed to dupe lenders.
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tommo
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Post by tommo on Jul 31, 2020 20:19:11 GMT
why are we speculating why the new lender is refinancing or whether the borrower can afford the new payments? lets keep schtum and let the refinance happen so we can get repaid.
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criston
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Post by criston on Jul 31, 2020 20:36:01 GMT
why are we speculating why the new lender is refinancing or whether the borrower can afford the new payments? lets keep schtum and let the refinance happen so we can get repaid.
Get it auctioned off & don't let it go on & on
'04/10/2019
Over the last couple of weeks we have been in direct communication with the bond provider themselves rather than liaising with the buyer/borrower.
These discussions have proved positive and whilst is has been clear that the bond provider is not yet in a position to advance the funding, they are keen to do so. Through negotiations, the loan will be extended to the 15th November subject to the following terms:
1) A contribution to the arrears is advanced by the bond provider representing two-months’ worth of interest no later than Friday next week (11th). This allows them sufficient time to have the legal paperwork in place to cover this advance.
2) A further contribution to the arrears is advanced by the bond provider representing two-months’ worth of interest no later than Friday 25th October.
3) A further contribution to the arrears is advanced by the bond provider representing one-months’ worth of interest to bring all the arrears up to date no later than Friday 8th November.
4) Completion by the 15th November.
'
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tommo
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Post by tommo on Jul 31, 2020 20:51:21 GMT
yeah, but we are not in control here. MT will keep this going as long as they feel there is a credible refinance option. if they feel it is credible, why should we post messages that would dissuade this financier? we gain nothing by posting negative posts during this period and we lose nothing by not posting.
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Post by queenvictoria on Aug 1, 2020 8:46:26 GMT
yeah, but we are not in control here. MT will keep this going as long as they feel there is a credible refinance option. if they feel it is credible, why should we post messages that would dissuade this financier? we gain nothing by posting negative posts during this period and we lose nothing by not posting. I remember us having this conversation with the N-U-L loan a year or so ago. There were no interest payments, little evidence of real progress on site, suggestions that the value was in fact increasing and multiple 'offers' of new money / refinance etc. Many said we should keep quiet and let MT do their job, others wanted more regular, more accurate, more precise updates so we could monitor. Of course, MT did it their way and ultimately, after around 2 years of procastination, the loan was called in. The site was sold at around 20% of the valuation and after fees and costs lenders saw around half that. There is still some prospect of further recovery via the personal guarantee and action against the valuer but success must be a remote prospect. There is little we lenders can do to effect any change but we can at least talk to each other
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criston
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Post by criston on Aug 1, 2020 8:54:25 GMT
I posted the following here on March 7th & still say there is plenty of money to play with
Let's have a go at rough costings. Ex surveyor here, out of touch.
10520 sqm floor area @ build cost of £1500 sqm. (Valuation suggests £1323 sqm)
Build cost £15,780,000. (Valuation suggests £21,000,000 inclusive of professional fees, extracted from a tendering process)
Finance average over 4 years, £4million to £20 million @ 12% £5.76m, (Valuation suggests £1,278,023 )
Developer profit say 25% of sales value £9.5m (Valuation suggests less at £7,623,650)
2017 Sales value or GDV £38,118,250
Leaves £7 million for the land & any other sundry costs. (Valuation suggests £13000 per dwelling, hence £4m security)
What are we waiting for? What is the difficulty with refinancing or selling on?
Note. I picked up the valuation figures after I did my own, as I did not realise they were already available.
The finance appears too low, but it is as broad as it is long. The profit figure is certainly some buffer.
If & when arrears are paid, the borrower would have paid approaching £1 million in interest payments.
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Post by Badly Drawn Stickman on Aug 1, 2020 8:59:31 GMT
yeah, but we are not in control here. MT will keep this going as long as they feel there is a credible refinance option. if they feel it is credible, why should we post messages that would dissuade this financier? we gain nothing by posting negative posts during this period and we lose nothing by not posting. I remember us having this conversation with the N-U-L loan a year or so ago. There were no interest payments, little evidence of real progress on site, suggestions that the value was in fact increasing and multiple 'offers' of new money / refinance etc. Many said we should keep quiet and let MT do their job, others wanted more regular, more accurate, more precise updates so we could monitor. Of course, MT did it their way and ultimately, after around 2 years of procastination, the loan was called in. The site was sold at around 20% of the valuation and after fees and costs lenders saw around half that. There is still some prospect of further recovery via the personal guarantee and action against the valuer but success must be a remote prospect. There is little we lenders can do to effect any change but we can at least talk to each other The problem with a public forum is that it is sometimes like playing poker with your cards picture side up. I am by nature against 'secret groups', but sometimes conversations are more productive when held that way. Given the well known and documented problems in setting one up, maybe it is time to see if the administrators would facilitate one for you?
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eeyore
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Post by eeyore on Aug 1, 2020 9:00:49 GMT
........ There is little we lenders can do to effect any change but we can at least talk to each other Totally agree, but confine the speculation to DD Central perhaps?
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averageguy
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Post by averageguy on Aug 26, 2020 13:08:23 GMT
........and this months interest payment?
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