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Post by emoney on Jun 28, 2014 7:08:56 GMT
Good morning. You may have seen on P2Pmoney blog.p2pmoney.co.uk/ that we have launched our new secured loan offering to the crowd. We would really appreciate your feedback on here regarding our next stage funding options, after all without the crowds full support Peer to Peer will become dominated by institutional funds. We have a pipeline of several six figure loans about to come onto the platform, and this with very little marketing. Does the crowd feel that commercial lending participation is good for the industry or not? At our last board meeting, new additions to the top table to be announced next week, we debated our own Fixed Yield Bond issuance to deal with the big ticket deal flow in the pipeline following an approach from an FCA Investment Manager who is keen to promote us. Does the personal crowd feel that it has the pockets to satisfy a £Billion lending demand for 2015 or can the Peer to Peer borrower demand only be satisfied via institutional money?
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Post by davee39 on Jun 28, 2014 8:30:26 GMT
Commercial money is essential to allow P2P to grow to a point where it can inspire confidence in its financial stability among savers in Banks and Building Societies. A smaller new entrant will struggle to attract individual funds if it is seen as less safe than the the dominant P2P platforms, yet P2P is still so small overall there is room for huge growth if the right products are devised. Of course these plans must insure that the individual investor is not squeezed out. I hope to see many more investment trusts and other vehicles investing in P2P and creating real competition for the incompetent and dishonest Banks.
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Post by oldnick on Jun 28, 2014 11:30:15 GMT
Reluctantly I agree that institutions are needed to supply the infrastructure for growth. That means my 'profits' will be diluted along with the risk. It's just sad that, on past performance of large financial institutions, it won't be me taking healthy profits - the very reason I started investing in p2p.
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Post by emoney on Jun 30, 2014 17:06:35 GMT
Thanks guys for the feedback, we have today fully funded a £31.5K Peer to Peer 2nd Charge secured loan at 61% LTV with many more lender opportunities to follow www.emoneyunion.com/marketplace/ , so it's looking like the institutional funds working alongside the crowd is very much on the agenda with very little challenge. The big money expected to flow from the Peer to Peer NISA opportunity is some time off yet, so we have to deal with the demand here today from Peer to Peer borrowers. It's an exciting time to be involved in Peer to Peer.
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Post by mrclondon on Jun 30, 2014 21:51:57 GMT
Thanks guys for the feedback, we have today fully funded a £31.5K Peer to Peer 2nd Charge secured loan at 61% LTV It's a while since I've looked at your website, so your posts have alerted me to the fact I need to revisit soon for another evaluation. In the meantime could I be lazy and ask, a) what lender rate was achieved on this loan ? b) over what term ? and c) for confirmation that the stated 61% LTV is the combined LTV of both primary and secondary charges. Thanks.
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shimself
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Post by shimself on Jun 30, 2014 21:52:37 GMT
Can you explain F1 F2 F3 S1 S2 S3 please. Sorry if I've missed it
Steve
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Post by emoney on Jul 1, 2014 7:13:09 GMT
Thanks guys for the feedback, we have today fully funded a £31.5K Peer to Peer 2nd Charge secured loan at 61% LTV It's a while since I've looked at your website, so your posts have alerted me to the fact I need to revisit soon for another evaluation. In the meantime could I be lazy and ask, a) what lender rate was achieved on this loan ? b) over what term ? and c) for confirmation that the stated 61% LTV is the combined LTV of both primary and secondary charges. Thanks. Good morning, a) The lender rate achieved was 11% Fixed Yield. b) The loan term is 11 years. c) I can confirm that the 61% LTV is the combined original 1st mortgage and the eMoneyUnion 2nd charge Peer to Peer Secured Loan.
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Post by emoney on Jul 1, 2014 7:16:58 GMT
Can you explain F1 F2 F3 S1 S2 S3 please. Sorry if I've missed it Steve Good morning Shimself. F grade loans are for First Charge Loans and S grade loans are for Second Charge Loans. Loans are secured on residential property assets only, we will not be lending against commercial property assets as we deem these to be of a higher risk nature. Further information can be found on the Blog www.emoneyunion.com/blog/2014/06/26/peer-peer-secured-loans-now-live/#more-9916
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shimself
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Post by shimself on Jul 1, 2014 15:55:21 GMT
Can you explain F1 F2 F3 S1 S2 S3 please. Sorry if I've missed it Steve Good morning Shimself. F grade loans are for First Charge Loans and S grade loans are for Second Charge Loans. Loans are secured on residential property assets only, we will not be lending against commercial property assets as we deem these to be of a higher risk nature. Further information can be found on the Blog www.emoneyunion.com/blog/2014/06/26/peer-peer-secured-loans-now-live/#more-9916Hello, thanks for the prompt reply The further info doesn't say anywhere about the difference between 1 2 and 3. It's not even certain if 1 or 3 is best. And how much difference is there between these levels, is there a document somewhere (there has to be surely) which tells the valuer (Hometrack) what level to choose?
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Post by emoney on Jul 2, 2014 14:32:38 GMT
Good afternoon.
Borrowers who have more equity in their homes are able to borrow monies at a lower rate, the driver for the varying risk grade is LTV. As they are deemed the lower capital risk then this in turn equates to a lower yield for lenders.
The F1 and F2 Loans (F - for First Charge) that the properties are secured against are independently valued by a Chartered Surveyor as these loans are for amounts in excess of £100,000. The first charge Loan To Value is the driver for these loans and corresponding risk grade.
Hometrack is used where loan amounts are less than £100,000 or smaller second charges. We will have instances where a borrower qualifies for an S1 Risk Grade based on LTV equity calculations, however they may have a relatively low credit score and as such we feel they are not eligible for the S1 Lower Rate and we will allocate them an S2 Risk Grade. This higher risk grade in turn provides the lender with a yield commensurate with the borrowers risk profile.
The credit score is not the only determining factor and we have many other underwriting tools at our disposal, let's just call it our secret underwriting sauce and not for public disclosure.
PLease feel free to call me if you have any further questions, 01625 750027 and ask for Lee.
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shimself
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Post by shimself on Jul 2, 2014 21:57:38 GMT
Good afternoon. Borrowers who have more equity in their homes are able to borrow monies at a lower rate, the driver for the varying risk grade is LTV. As they are deemed the lower capital risk then this in turn equates to a lower yield for lenders. The F1 and F2 Loans (F - for First Charge) that the properties are secured against are independently valued by a Chartered Surveyor as these loans are for amounts in excess of £100,000. The first charge Loan To Value is the driver for these loans and corresponding risk grade. Hometrack is used where loan amounts are less than £100,000 or smaller second charges. We will have instances where a borrower qualifies for an S1 Risk Grade based on LTV equity calculations, however they may have a relatively low credit score and as such we feel they are not eligible for the S1 Lower Rate and we will allocate them an S2 Risk Grade. This higher risk grade in turn provides the lender with a yield commensurate with the borrowers risk profile. The credit score is not the only determining factor and we have many other underwriting tools at our disposal, let's just call it our secret underwriting sauce and not for public disclosure. PLease feel free to call me if you have any further questions, 01625 750027 and ask for Lee. That's good thanks, got it now
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Post by webbski9 on Jul 3, 2014 8:28:24 GMT
Morning Lee. When can we expect some more property secured loans on EMU ?
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Post by emoney on Jul 3, 2014 12:11:39 GMT
I have approved a large six figure loan from an underwriting perspective, as it's a 1st charge Loan we are introducing additional underwriting information to the www.emoneyunion.com/marketplace/ The additional information will include the region, i.e. London or North West; plus a very exciting development to be announced once approved by the legal team..
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Post by emoney on Jul 4, 2014 11:15:16 GMT
Just to let everyone know, if the secured loans are over a longer period i.e. 5- 25 years, you are still able to exit/sell the loan as and when you desire via the eMicroLoan aftermarket either for a 3% premium or dicsount, this is very liquid at the moment and we anticipate this liquidity to continue. Please note that you are only able to view and participate in the market if you are a registered lender and have funds on deposit to execute a trade.
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Post by webbski9 on Jul 4, 2014 22:18:23 GMT
Many Thanks and very good news
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