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Want 18% Returns? Become A Subprime Lender

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This is in the US but I suspect the article applies equally to us Brits as well.

Yanks and Brits unable to make enough for pensions from shares risking their nest-eggs on subprime lending in the US and BTL in the UK?

It has come to this. Unable to save enough for retirement with traditional investments, baby boomers in search of yield are becoming their own private Countrywide Financials.

They’re loaning cash from their deposit accounts and retirement plans and hoping for a big pay day: specifically large returns that will boost their income and maybe even allow them to pass an inheritance on to their children.

There is no official data, though it’s estimated that at least 100,000 such lenders exist — and the trend is on the rise, says Larry Muck, chairman of the American Association of Private Lenders, which represents a range of lenders including private-equity firms and individuals who are lending their own cash. “We know the number of people who are doing this is increasing dramatically — over the last year it’s grown exponentially,” he says.

http://www.marketwatch.com/story/bank-wont-give-you-a-home-loan-ask-hank-2013-11-11

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This is in the US but I suspect the article applies equally to us Brits as well.

Yanks and Brits unable to make enough for pensions from shares risking their nest-eggs on subprime lending in the US and BTL in the UK?

http://www.marketwatch.com/story/bank-wont-give-you-a-home-loan-ask-hank-2013-11-11

....it’s estimated that at least 100,000 such lenders exist,... says Larry Muck, chairman of the American Association of Private Lenders, which represents a range of lenders including private-equity firms...

Where's there's muck, there's money...

Edited by juvenal

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"You've got unsophisticated lenders and unsophisticated buyers [and] it sounds like a very risky combination,"

So they have taken over the market position formerly held by Preferred Mortgages, Mortgages PLC and the secured 2nd lenders like Swift Advances - none of whom exist as lenders now? Maybe US based now - give it 18 months and it will be big UK business too. It is just ridiculous. In 5 or less years this will be mega business for the miss-sold claims market.

:angry:

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