Les
Reply: 1.1.1.1.1
From: Mike .
Re: Asset Based Finance - to Stuart and Jane P
From: Les
Date: 6/25/00
Time: 1:21:36 PM
G'day Stuart,
API magazine (April/May99) mentions such loans as available thru some solicitors - in the case in their story, they were talking 70%. But no firms quoted - it sounds like "they're out there" though.
Also, Andrew G alluded to similar in an earlier post (March/April 00) - sorry, I don't remember the name of the posting - and in that he referred to 75% being available from "out of the square" lenders. Check any posting submitted by Darren, and replied to by Andrew G - one of them will expand greatly on Asset Based Finance.
To Jane P - from the figures, I doubt that the loan quoted would be an example of this - at 90%, it sounds like the common or garden home or Investment loan where DSR is a major issue (and stumbling block for some). What I refer to as "Asset Based" is where the lender simply offers a loan based on the valuation of the property - they ask no questions re your ability to repay, and (of course) they don't lend to 90% typically. But if St. George ARE offering "asset based" loans, I would certainly be interested in knowing more (I doubt that they would be at 90% though..)
And of course there may be other names given to these loans (I've heard one group refer to them as "asset based" loans) - I stuck to using that name as it seems to tell it like it is.
Regards, Les