IFISAcava
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Post by IFISAcava on Oct 10, 2018 12:24:38 GMT
I am coming to the conclusion that the Moneything ISA is not sustainable for me. When the new loans were coming, I transferred in a couple of tranches, and could use the non-ISA account as a "holding" position prior to transferring investments (sorry - selling and rebuying on the SM) into the ISA. However, repayments and lack of new loans means that I now have well over 50% non-invested, and have had so for many months, meaning massive and unacceptably high cash drag. 50% of 12% is 6% interest, and I can get that with less risk, and less input/DD/FFF, elsewhere. Sure, it's a flexible ISA so I could withdraw the cash balance and earn interest elsewhere, but then it's taxable and defeats the purpose of the ISA. So in the absence of any indication of a decent pipeline I am thinking of taking the £50 transfer hit and saying a somewhat reluctant goodbye to MT.
EDIT: and of course the £50 fee is a massive disincentive to transfer only part of the ISA - it makes it an all or nothing decision without foregoing too high a proportion of interest earned to date (since I am only talking a high 5 figure sum here - really not easy to get any more than that invested on MT with the bid limits on new loans).
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Post by MoneyThing on Oct 10, 2018 12:38:34 GMT
I am coming to the conclusion that the Moneything ISA is not sustainable for me. When the new loans were coming, I transferred in a couple of tranches, and could use the non-ISA account as a "holding" position prior to transferring investments (sorry - selling and rebuying on the SM) into the ISA. However, repayments and lack of new loans means that I now have well over 50% non-invested, and have had so for many months, meaning massive and unacceptably high cash drag. 50% of 12% is 6% interest, and I can get that with less risk, and less input/DD/FFF, elsewhere. Sure, it's a flexible ISA so I could withdraw the cash balance and earn interest elsewhere, but then it's taxable and defeats the purpose of the ISA. So in the absence of any indication of a decent pipeline I am thinking of taking the £50 transfer hit and saying a somewhat reluctant goodbye to MT. EDIT: and of course the £50 fee is a massive disincentive to transfer only part of the ISA - it makes it an all or nothing decision without foregoing too high a proportion of interest earned to date (since I am only talking a high 5 figure sum here - really not easy to get any more than that invested on MT with the bid limits on new loans). Acknowledged. Can I suggest that you might wish to hold on a little while longer. With our new sales person on board we are seeing a significant increase in deals coming in at the top of the funnel which some will start to trickle down on to the platform soon. Kind regards, Ed.
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robski
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Post by robski on Oct 10, 2018 15:51:30 GMT
Sounds promising.
Really hope this turns into a flood of decent loans. Not just for personal reasons, but also because I believe MT deserve to grow, and get over this short term issue they have with loans and switching from too many property loans.
I couldn't wait for MT so this year I am elsewhere, I hope that by April next the situation is fluid enough that I can see at least 50% of the ISA allowance meeting my personal requirements for max loan, diversity etc
Less than 50% just wont cut it and i will again have to go elsewhere, but if I can feel reasonably certain I can get 50% as I would want then I will be into a MT ISA. (The rest would be in the ISA but unlent, its the depositing that matters of course)
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james21
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Post by james21 on Oct 10, 2018 18:19:31 GMT
I would take the £50 transfer fee and get out, its a measure of this company that they charge to exit, most dont, their pipeline is a wish list and they are minnow in a big pond, just look at the default list and queue to sell
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gt94sss2
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Post by gt94sss2 on Oct 10, 2018 18:35:52 GMT
I opened a MT ISA earlier this year but never got around to funding it. This was partly because of the (lack of) loan flow but also as I object to paying to transfer an ISA away, should the need arise.
I have, however, increased my non ISA exposure to MT..
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justme
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Post by justme on Oct 10, 2018 18:55:50 GMT
I would take the £50 transfer fee and get out, its a measure of this company that they charge to exit, most dont, their pipeline is a wish list and they are minnow in a big pond, just look at the default list and queue to sell I believe ablrate charge as well for transfer - correct me if I am wrong
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toast
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Post by toast on Oct 10, 2018 22:02:36 GMT
I believe ablrate charge as well for transfer - correct me if I am wrong Yep, they have a £100 transfer-out fee.
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averageguy
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Post by averageguy on Oct 11, 2018 9:01:24 GMT
I believe ablrate charge as well for transfer - correct me if I am wrong Yep, they have a £100 transfer-out fee. Oh dear James21 won't like that ...after all its twice what this 'minow' is charging
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Post by mattygroves on Oct 12, 2018 8:45:59 GMT
I believe ablrate charge as well for transfer - correct me if I am wrong Yep, they have a £100 transfer-out fee. It's also difficult to get invested at ABL sensibly given the number of connected borrowers.
Free transfers only apply to cash ISAs it is standard to expect them for S&S ISAs.
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Post by wiseclerk on Oct 12, 2018 9:54:10 GMT
Free transfers out are pretty standard in p2p lending too. 23 (of 41) in my database comparison have them
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james21
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Post by james21 on Oct 12, 2018 18:26:59 GMT
I believe ablrate charge as well for transfer - correct me if I am wrong Yep, they have a £100 transfer-out fee. £100, you must be joking! shame on ablrate
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withnell
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Post by withnell on Oct 15, 2018 14:51:28 GMT
Yep, they have a £100 transfer-out fee. £100, you must be joking! shame on ablrate They only pass on what they're charged by the ISA manager Alternative is for them to take a higher cut of the interest, I'd rather higher returns and transparent fees (as and when I choose to incur them)
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dh1
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Post by dh1 on Oct 16, 2018 10:34:50 GMT
My MT IFISA seems to be working well enough; it has err absorbed a chunk of non-ISA loans and when it has funds available, it will collect some more. Of course in the medium term (6 months or so) much will depend on suitable loan availability which is looking a bit uncertain at the moment.
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