duck
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Post by duck on Jun 7, 2017 5:54:30 GMT
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jonah
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Post by jonah on Jun 7, 2017 5:59:42 GMT
In addition to or as replacement for GBBA I wonder. I've been waiting for GBBA rates to drop for a while.
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j
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Penguins are very misunderstood!
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Post by j on Jun 7, 2017 6:31:42 GMT
5.5% for a more 'cautious' investor is not to be sniffed at. Depends what the max ltv will be & how good & true to value the valuations will be though!
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pikestaff
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Post by pikestaff on Jun 7, 2017 7:03:54 GMT
In addition to or as replacement for GBBA I wonder. I've been waiting for GBBA rates to drop for a while. It will be in addition. Property loans don't qualify for the GBBA (although business loans secured on property do, and there's a fine dividing line sometimes). The product will appeal to some, especially those who don't want the hassle of the MLIA, and it will help AC fill their lower rate loans. However, I will give it a miss. I think a provision fund backed property loan account is a bad idea. The provision fund won't be needed in the good times and won't be big enough if there's a real crash.
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greatmarko
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Post by greatmarko on Jun 7, 2017 7:20:31 GMT
p2pfinancenews jumping the gun again I see! I suspect AC had embargoed this news until later today
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jun 7, 2017 7:35:53 GMT
Based on past experience the LTV needs to be very low. I am aware of 2 AC property loans (#60 & #86) that have returned less than 50% of their valuation. In both cases there was reason to consider the valuation was conservative.
EDIT: Of course don't assume future experience will be as bad as past experience, it could be worse.
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greatmarko
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Post by greatmarko on Jun 7, 2017 8:41:08 GMT
The new "Property Secured Investment Account" (PSIA) is now live - but interestingly this is the only AC account to state "No fee for withdrawals, although this may change in the future"
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Post by wiseclerk on Jun 7, 2017 9:29:28 GMT
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greatmarko
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Post by greatmarko on Jun 7, 2017 9:33:09 GMT
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jun 7, 2017 9:42:33 GMT
Interesting to see that AC are marketing a brand new account with a provision fund.
There have been suggestions that the FCA don't like P2P sites with provision funds, and may not give full authorisation to sites with provision funds.
Either AC don't want full authorisation or it's fake news.
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teddy
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Post by teddy on Jun 7, 2017 10:04:18 GMT
Based on past experience the LTV needs to be very low. I am aware of 2 AC property loans (#60 & #86) that have returned less than 50% of their valuation. In both cases there was reason to consider the valuation was conservative. EDIT: Of course don't assume future experience will be as bad as past experience, it could be worse. After the recent #330 debacle, I've little confidence that AC can get property valuations reasonably correct. I know Estate Agent house valuatíons in my local area have been well wide of the mark for a few years now. I reckon there's a big downturn coming and it'll be negative equity 90s style all over again.
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Post by andrewholgate on Jun 7, 2017 10:15:55 GMT
p2pfinancenews jumping the gun again I see! I suspect AC had embargoed this news until later today 
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dermot
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Post by dermot on Jun 7, 2017 10:59:58 GMT
Now if this was an IFISA at 5.5% it would attract my serious attention. As it is, I keep "rainy day" money in a variety of places, some with guaranteed liquidity and some less so; when the 4.75% on 30DAA runs out, I'll probably shuffle much of that across, as I consider 30DAA to be for "money that I'm overwhelmingly unlikely to need for at least three months". I wonder how liquidity on the new account will match up? Of course, andrewholgate , if you implemented an automatic transfer of returned interest every month to my nominated bank account, I'd be even more interested, especially if combined with the ability to sweep returns from other accounts to it as they become available. |
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dandy
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Post by dandy on Jun 8, 2017 9:47:53 GMT
THIS INVESTMENT ACCOUNT IS PROTECTED BY A DISCRETIONARY PROVISION FUND
The Discretionary Provision Fund aims to provide protection from any missed interest or capital repayments. Read more
Discretionary Provision Fund aiming for 5% bad debt coverage.chris above is for PSIA. Does this mean a) 5% of value of all loans in the account or b) 5x expected bad debt or c) 5% of expected bad debt? So if loan values are say £100m with expected bad debt of £2m then is the PF aiming to be a) £5m b) £10m or c) £100,000. As worded it would seem c). Or possibly a). However, comparing with the format for other accounts it would be b). Please could you clarify?
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Post by chris on Jun 8, 2017 9:50:53 GMT
THIS INVESTMENT ACCOUNT IS PROTECTED BY A DISCRETIONARY PROVISION FUND
The Discretionary Provision Fund aims to provide protection from any missed interest or capital repayments. Read more
Discretionary Provision Fund aiming for 5% bad debt coverage.chris above is for PSIA. Does this mean a) 5% of value of all loans in the account or b) 5x expected bad debt or c) 5% of expected bad debt? So if loan values are say £100m with expected bad debt of £2m then is the PF aiming to be a) £5m b) £10m or c) £100,000. As worded it would seem c). Or possibly a). However, comparing with the format for other accounts it would be b). Please could you clarify? Best to talk to customer services to get clarity. I'm CTO, so this isn't my area of expertise, and on holiday from tomorrow 
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