|
|
Post by oppsididitagain on Sept 7, 2017 9:30:31 GMT
Its been said before on other threads how the returns are getting less, however the LTV seem to be going up and the % returns getting smaller .
The latest 2 'opportunity'
Loan to value: 74.53%
Annualised return: 5.00%
Is this the sign of things to come or is the market starting to over stretch itself !?
I also wonder since LI launched the retail bond at 5.25% , has this been used to fund most of the new investments hence the lower returns to the public ?
|
|
upland
Member of DD Central
Posts: 478 
Likes: 175
|
Post by upland on Sept 7, 2017 11:46:29 GMT
Indeed I think that I have noticed these loans over more than one year completing and then be re-offered at rates that I would not entertain. LTV gets higher and return gets lower. I have a number of extended loans and a declining number of decent ones. I think that it got worse with the bond offer. I dont find these rates good especially as there is no secondary market.
|
|
rick24
Member of DD Central
Posts: 244
Likes: 138
|
Post by rick24 on Sept 7, 2017 13:27:21 GMT
There was a loan recently LTV 46.42%, 5.5% to lender but gross rate of 13.8%. The LTV is very good but the interest rate spread is pushing the boundaries of what I will go for....actually, looking back it wasn't that recent but I think the point stands.
|
|
|
|
Post by p2ples on Sept 7, 2017 18:44:36 GMT
Its been said before on other threads how the returns are getting less, however the LTV seem to be going up and the % returns getting smaller . The latest 2 'opportunity' Loan to value: 74.53% Annualised return: 5.00% Is this the sign of things to come or is the market starting to over stretch itself !? I also wonder since LI launched the retail bond at 5.25% , has this been used to fund most of the new investments hence the lower returns to the public ? This one didn't float my boat but if investors continue to snap up these loans with higher LTVs and lower rates, it's difficult to see why LI would want to offer anything better.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Sept 30, 2017 20:36:37 GMT
Its been said before on other threads how the returns are getting less, however the LTV seem to be going up and the % returns getting smaller . The latest 2 'opportunity' Loan to value: 74.53% Annualised return: 5.00% Is this the sign of things to come or is the market starting to over stretch itself !? I also wonder since LI launched the retail bond at 5.25% , has this been used to fund most of the new investments hence the lower returns to the public ? This one didn't float my boat but if investors continue to snap up these loans with higher LTVs and lower rates, it's difficult to see why LI would want to offer anything better. Or turn on auto-invest.
|
|
