littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Sept 28, 2017 11:11:08 GMT
proplend am I right in thinking that borrowers and lenders have the same rate and that Proplend make their money from a 'completion charge', and is this always 3% of the principle regardless of the term, and when is it levied?
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Post by proplend on Sept 28, 2017 12:27:42 GMT
proplend am I right in thinking that borrowers and lenders have the same rate and that Proplend make their money from a 'completion charge', and is this always 3% of the principle regardless of the term, and when is it levied? You're partly right littleoldlady - we do pass on the full rate of interest to Lenders that borrowers pay and then apply a 10% 'Lender Fee' each month once the interest payment(s) has been received and credited to participating Lenders. You can find out more here on our website or call us (0203 397 8290) if you'd prefer to speak to someone. We also charge an 'Arrangement Fee' to borrowers but this is distinct from the rate of interest payable on the loan itself. We hope our fees are more transparent by not including them in an adjusted rate to Lenders like you may be used to with some other platforms. Thanks, Richard
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sapphire
Member of DD Central
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Post by sapphire on Dec 21, 2017 7:46:20 GMT
I think one other potential charge for the investor (seller) and so a source of revenue for Proplend is the 0.5% fee on secondary market deals. (Some other platforms facilitate this without any charge.)
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elliotn
Member of DD Central
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Post by elliotn on Dec 21, 2017 10:58:44 GMT
Yep, headline 10% Tranche B loan for 12m would be c8.5% if you required access to your capital before term (depending on time held).
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