rscal
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Post by rscal on Jan 13, 2019 9:54:33 GMT
Can I tap ppl's knowledge of how reutrns are being calculated by LC themselves in your account summary (I'm entirely in the auto invested 'growth' account)?
Their figure for 'Total Rate of Return' includes any promotion 'earned' to date - which is a prorata adjustment I assume - if you've been invested for 36 days approx they'll have added 10% (more or less) but unseen to your balance, no? I know that the bonus isn't paid until the 'lock in' of 12 months by which time adding to your actual balance would finally justify its percentage inclusion in the TRR. Is this assumption along the right lines?
Also regarding fees, they seem to be taking '1%' but not of the interest repayment itself, nor of the interest plus principal repayments (it would appear) but of the interest plus remaining principal(?) Example £100 loan part pays (say) 1.6% or £1.60 in principal plus (say) 80p interest so that's £2.40 and the fee is then ... what... 100p[1% of £100]/12mth (of capital) plus 100p[1% of £100]/12mth (1% of interest reduction from the nominal IR) = 18p/mth?
(THANKS FOR ANY LIGHT YOU CAN SHED)
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r00lish67
Member of DD Central
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Post by r00lish67 on Jan 13, 2019 10:53:57 GMT
Can I tap ppl's knowledge of how reutrns are being calculated by LC themselves in your account summary (I'm entirely in the auto invested 'growth' account)? Their figure for 'Total Rate of Return' includes any promotion 'earned' to date - which is a prorata adjustment I assume - if you've been invested for 36 days approx they'll have added 10% (more or less) but unseen to your balance, no? I know that the bonus isn't paid until the 'lock in' of 12 months by which time adding to your actual balance would finally justify its percentage inclusion in the TRR. Is this assumption along the right lines? Also regarding fees, they seem to be taking '1%' but not of the interest repayment itself, nor of the interest plus principal repayments (it would appear) but of the interest plus remaining principal(?) Example £100 loan part pays (say) 1.6% or £1.60 in principal plus (say) 80p interest so that's £2.40 and the fee is then ... what... 100p[1% of £100]/12mth (of capital) plus 100p[1% of £100]/12mth (1% of interest reduction from the nominal IR) = 18p/mth? (THANKS FOR ANY LIGHT YOU CAN SHED) Man, heavy stuff for a Sunday morning. I won't pretend that I follow your fees calculation exactly, but I hope it suffices to say that it's simpler than that. As per here, the LC ongoing fee is 1 percentage point of the interest you receive. " For example, if you lend at a rate of 9%, you’ll receive 8% after this repayment fee". Exactly the same as FC, if that helps. Some of that may be hidden from you as an auto-investor but as stated too " The ongoing repayment fee is included in the target rate for the Growth Account, Growth ISA, Income Account and Income ISA"I'm a manual investor, so i won't attempt to wrestle with their dashboard returns figures. As with the notorious FC stats, I choose to politely ignore them - I scribble down my total funds on one date of the month, then check what the new figure is 1 month later and check it a typical 7% growth (defaults notwithstanding). Rough/ready, but works for me! Others may have been more keen than me in trying to wrangle truth from the dashboard.
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rscal
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Post by rscal on Jan 13, 2019 14:20:18 GMT
Whilst away from the computer mulling this myself, I formed a plan and found the transaction statement download feature. In a spreadsheet I could then total all fees, interest payments and principal payments:
Interest paid of 46.16, Fees of - 4.81 (about 1/9.6) which corresponds roughly with 1% from the likely gross rate of interest
Principal repaid 121.72 (on 10k) this seems a bit 'light' although @ 2.63 x interest paid corresponds exactly to five year 'new' loans
After 1.1 months one would expect to see nearer to 1% in interest repaid rather than 0.5% so I imagine there is a bit of a drag already and the increase over the NEXT month will (as you point out) be much closer to the expected for that period - albeit with a bit more drag also.
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