number5
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Post by number5 on Mar 19, 2019 22:12:37 GMT
Really appreciate all your help! I have asigned several K in £100's for last few hours but so far nothing has been lent. I have set my rate range to 10-15% Is that too high from experience? Not too high, 10-15% is how I usually set my new investments. If nothing or very little is invested in 12-24 hours, I lower the rate. I'm not scared of setting the rate low, I've opened the gate to full width few times and the proportion of lower end rate/risk loans was very small. Have a look at it tomorrow. If there's no progress, try lowering rates on some or all of them and see how it goes. On thing I am confused about is the auto diversify function within each assignment. At 10% it says £10. But I thought the minimum you have to invest is £100
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Post by Ace on Mar 19, 2019 22:13:40 GMT
Yes, you will have to assign £100 20 times. This can take a couple of minutes, but the benefit is - you can do partial withdrawals in future if you need to. I use auto diversify. Normally keep it at 10%, but occasionally increase if investment is stuck or return is larger than my 10% allowance. However, I don't think maximum diversification matters that much because PF will cover the loss anyway. In theory, if you set diversification at 20% you shouldn't be at more risk than setting it at 10%. It can be confusing, particularly with WL - mechanics are quite different from other platforms. But it shouldn't take too long to get some hang of it. Really appreciate all your help! I have asigned several K in £100's for last few hours but so far nothing has been lent. I have set my rate range to 10-15% Is that too high from experience? That's roughly the same range that I use. I'm currently 96% lent out (4% queued). Was ~100% lent out yesterday, but 3 loans were purchased by the PF last night. It often takes a couple of days to get started, but new money usually gets lent out quickly once lending starts. I've changed my diversification settings to 20%, as I don't see any advantage in diversification while the PF is still compensating for lost interest up to the point of repurchase. My hope is that it will mean I get less cash drag as I'll potentially get a larger chunk of any loan that I'm allocated (can't be sure that the allocation algorithm doesn't take account of this though, since we're not told how it works). Good luck.
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number5
Member of DD Central
Posts: 449
Likes: 98
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Post by number5 on Mar 19, 2019 22:20:58 GMT
Really appreciate all your help! I have asigned several K in £100's for last few hours but so far nothing has been lent. I have set my rate range to 10-15% Is that too high from experience? That's roughly the same range that I use. I'm currently 96% lent out (4% queued). Was ~100% lent out yesterday, but 3 loans were purchased by the PF last night. It often takes a couple of days to get started, but new money usually gets lent out quickly once lending starts. I've changed my diversification settings to 20%, as I don't see any advantage in diversification while the PF is still compensating for lost interest up to the point of repurchase. My hope is that it will mean I get less cash drag as I'll potentially get a larger chunk of any loan that I'm allocated (can't be sure that the allocation algorithm doesn't take account of this though, since we're not told how it works). Good luck. Can't say I am aware of what being purchased by the PF actually means and triggers it? I don't think I fully understand the auto diversification part of the platform. Setting at 10/20% of say £100...what is it doing?
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Post by Ace on Mar 19, 2019 22:38:58 GMT
That's roughly the same range that I use. I'm currently 96% lent out (4% queued). Was ~100% lent out yesterday, but 3 loans were purchased by the PF last night. It often takes a couple of days to get started, but new money usually gets lent out quickly once lending starts. I've changed my diversification settings to 20%, as I don't see any advantage in diversification while the PF is still compensating for lost interest up to the point of repurchase. My hope is that it will mean I get less cash drag as I'll potentially get a larger chunk of any loan that I'm allocated (can't be sure that the allocation algorithm doesn't take account of this though, since we're not told how it works). Good luck. Can't say I am aware of what being purchased by the PF actually means and triggers it? I don't think I fully understand the auto diversification part of the platform. Setting at 10/20% of say £100...what is it doing? The PF (Protection Fund) buys loans back off of you if payments are late buy 35 days. This is not guaranteed, but has always been payed so far. It also currently compensates you for any lost interest up to the point that it buys the loan back. This interest compensation is payed as Additional Payments near the beginning of the following month. Again this isn't guaranteed, but has been payed so far. The Auto diversification setting is the maximum percentage of a single investment that can be allocated to a single loan. So, if you have a £100 investment with a 20% diversification setting, it will be split in to at least 5 loans: each to a maximum of £20. Beware though, if you are concerned about diversification, because each investment is treated separately as though it has no knowledge of the others. So, each investment could be allocated a chunk of the same loan. I do have several investments with chunks of the same loan. Therefore, if you set all of your twenty £100 investments to 20% diversification, you could, in theory, be allocated £400 in the same loan! (obviously very unlikely though).
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number5
Member of DD Central
Posts: 449
Likes: 98
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Post by number5 on Mar 19, 2019 22:54:47 GMT
Can't say I am aware of what being purchased by the PF actually means and triggers it? I don't think I fully understand the auto diversification part of the platform. Setting at 10/20% of say £100...what is it doing? The PF (Protection Fund) buys loans back off of you if payments are late buy 35 days. This is not guaranteed, but has always been payed so far. It also currently compensates you for any lost interest up to the point that it buys the loan back. This interest compensation is payed as Additional Payments near the beginning of the following month. Again this isn't guaranteed, but has been payed so far. The Auto diversification setting is the maximum percentage of a single investment that can be allocated to a single loan. So, if you have a £100 investment with a 20% diversification setting, it will be split in to at least 5 loans: each to a maximum of £20. Beware though, if you are concerned about diversification, because each investment is treated separately as though it has no knowledge of the others. So, each investment could be allocated a chunk of the same loan. I do have several investments with chunks of the same loan. Therefore, if you set all of your twenty £100 investments to 20% diversification, you could, in theory, be allocated £400 in the same loan! (obviously very unlikely though). Oh okkkk....I thought me asigning £100 was instructing to allocate that £100 to one single loan that meets my rate range. But that assignement at 10% will actually be split into further 10 £10 loan parts?
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Post by Ace on Mar 19, 2019 23:02:23 GMT
The PF (Protection Fund) buys loans back off of you if payments are late buy 35 days. This is not guaranteed, but has always been payed so far. It also currently compensates you for any lost interest up to the point that it buys the loan back. This interest compensation is payed as Additional Payments near the beginning of the following month. Again this isn't guaranteed, but has been payed so far. The Auto diversification setting is the maximum percentage of a single investment that can be allocated to a single loan. So, if you have a £100 investment with a 20% diversification setting, it will be split in to at least 5 loans: each to a maximum of £20. Beware though, if you are concerned about diversification, because each investment is treated separately as though it has no knowledge of the others. So, each investment could be allocated a chunk of the same loan. I do have several investments with chunks of the same loan. Therefore, if you set all of your twenty £100 investments to 20% diversification, you could, in theory, be allocated £400 in the same loan! (obviously very unlikely though). Oh okkkk....I thought me asigning £100 was instructing to allocate that £100 to one single loan that meets my rate range. But that assignement at 10% will actually be split into further 10 £10 loan parts? Yep. Your maximum loan size will be £10. Could be much smaller though. I have many loans between £1 and £2.
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Post by df on Mar 19, 2019 23:06:47 GMT
Not too high, 10-15% is how I usually set my new investments. If nothing or very little is invested in 12-24 hours, I lower the rate. I'm not scared of setting the rate low, I've opened the gate to full width few times and the proportion of lower end rate/risk loans was very small. Have a look at it tomorrow. If there's no progress, try lowering rates on some or all of them and see how it goes. On thing I am confused about is the auto diversify function within each assignment. At 10% it says £10. But I thought the minimum you have to invest is £100 In WL language your £100 is one "investment". By selecting 10% you split your investment into £10 parts, so you will have it spread across 10 different loans. When it comes to returns, your money can be lent in smaller chunks, but still be part of that particular investment. If everything goes well, each of your £100 investments will grow and your minimum 10% diversification will be above £10.
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number5
Member of DD Central
Posts: 449
Likes: 98
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Post by number5 on Mar 19, 2019 23:06:50 GMT
Oh okkkk....I thought me asigning £100 was instructing to allocate that £100 to one single loan that meets my rate range. But that assignement at 10% will actually be split into further 10 £10 loan parts? Yep. Your maximum loan size will be £10. Could be much smaller though. I have many loans between £1 and £2. How do you manage to do that?....I thought I read somewhere £100 was the min you have to invest/asign?
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number5
Member of DD Central
Posts: 449
Likes: 98
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Post by number5 on Mar 19, 2019 23:12:22 GMT
On thing I am confused about is the auto diversify function within each assignment. At 10% it says £10. But I thought the minimum you have to invest is £100 In WL language your £100 is one "investment". By selecting 10% you split your investment into £10 parts, so you will have it spread across 10 different loans. When it comes to returns, your money can be lent in smaller chunks, but still be part of that particular investment. If everything goes well, each of your £100 investments will grow and your minimum 10% diversification will be above £10. When you withdraw an investment you lose the accrued interest not paid from what I have read. So then - 1. Who purchases this loan to free your funds? 2. What happens to the accrued interes?
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Post by df on Mar 19, 2019 23:17:56 GMT
Can't say I am aware of what being purchased by the PF actually means and triggers it? I don't think I fully understand the auto diversification part of the platform. Setting at 10/20% of say £100...what is it doing? The PF (Protection Fund) buys loans back off of you if payments are late buy 35 days. This is not guaranteed, but has always been payed so far. It also currently compensates you for any lost interest up to the point that it buys the loan back. This interest compensation is payed as Additional Payments near the beginning of the following month. Again this isn't guaranteed, but has been payed so far.
The Auto diversification setting is the maximum percentage of a single investment that can be allocated to a single loan. So, if you have a £100 investment with a 20% diversification setting, it will be split in to at least 5 loans: each to a maximum of £20. Beware though, if you are concerned about diversification, because each investment is treated separately as though it has no knowledge of the others. So, each investment could be allocated a chunk of the same loan. I do have several investments with chunks of the same loan. Therefore, if you set all of your twenty £100 investments to 20% diversification, you could, in theory, be allocated £400 in the same loan! (obviously very unlikely though). I'm a little concerned about PF bonus, it usually arrives earlier than 19th of the month. I haven't received any in March yet.
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Post by Ace on Mar 19, 2019 23:33:49 GMT
The PF (Protection Fund) buys loans back off of you if payments are late buy 35 days. This is not guaranteed, but has always been payed so far. It also currently compensates you for any lost interest up to the point that it buys the loan back. This interest compensation is payed as Additional Payments near the beginning of the following month. Again this isn't guaranteed, but has been payed so far.
The Auto diversification setting is the maximum percentage of a single investment that can be allocated to a single loan. So, if you have a £100 investment with a 20% diversification setting, it will be split in to at least 5 loans: each to a maximum of £20. Beware though, if you are concerned about diversification, because each investment is treated separately as though it has no knowledge of the others. So, each investment could be allocated a chunk of the same loan. I do have several investments with chunks of the same loan. Therefore, if you set all of your twenty £100 investments to 20% diversification, you could, in theory, be allocated £400 in the same loan! (obviously very unlikely though). I'm a little concerned about PF bonus, it usually arrives earlier than 19th of the month. I haven't received any in March yet. Was paid on the 6th this month.
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Post by Ace on Mar 19, 2019 23:53:38 GMT
In WL language your £100 is one "investment". By selecting 10% you split your investment into £10 parts, so you will have it spread across 10 different loans. When it comes to returns, your money can be lent in smaller chunks, but still be part of that particular investment. If everything goes well, each of your £100 investments will grow and your minimum 10% diversification will be above £10. When you withdraw an investment you lose the accrued interest not paid from what I have read. So then - 1. Who purchases this loan to free your funds? 2. What happens to the accrued interes? The loans are sold to other investors (if there were no investor funds queued to buy at the rates of the loans you want to sell, you could be stuck with them. Not a problem at the moment as there are currently funds queued to buy). According to the T&Cs (sections 15.3 & 15.4) , you do get the accrued interest, but you have to pay a "loan part sale fee" (which appears to be undefined). EDIT: There is also a mention of "relocation costs" (which also appear to be undefined). nsiam ?
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Post by df on Mar 20, 2019 8:33:31 GMT
I'm a little concerned about PF bonus, it usually arrives earlier than 19th of the month. I haven't received any in March yet. Was paid on the 6th this month. Thank you, I'm lost in time, feels like it was more than a month ago.
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Post by nsiam on Mar 21, 2019 21:22:24 GMT
When you withdraw an investment you lose the accrued interest not paid from what I have read. So then - 1. Who purchases this loan to free your funds? 2. What happens to the accrued interes? The loans are sold to other investors (if there were no investor funds queued to buy at the rates of the loans you want to sell, you could be stuck with them. Not a problem at the moment as there are currently funds queued to buy). According to the T&Cs (sections 15.3 & 15.4) , you do get the accrued interest, but you have to pay a "loan part sale fee" (which appears to be undefined). EDIT: There is also a mention of "relocation costs" (which also appear to be undefined). nsiam ? Ace you are correct explaining the process. number5, all earned interest from repayments made is earned. Exist fees and costs are zero. When withdrawing, you will only lose due interest on future/unpaid repayments.
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number5
Member of DD Central
Posts: 449
Likes: 98
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Post by number5 on Mar 25, 2019 16:45:33 GMT
The loans are sold to other investors (if there were no investor funds queued to buy at the rates of the loans you want to sell, you could be stuck with them. Not a problem at the moment as there are currently funds queued to buy). According to the T&Cs (sections 15.3 & 15.4) , you do get the accrued interest, but you have to pay a "loan part sale fee" (which appears to be undefined). EDIT: There is also a mention of "relocation costs" (which also appear to be undefined). nsiam ? Ace you are correct explaining the process. number5 , all earned interest from repayments made is earned. Exist fees and costs are zero. When withdrawing, you will only lose due interest on future/unpaid repayments. Thanks nsiam Is there a way of knowing how much accrued interest there is in an investment prior to making the decision to withdraw? For example if I have 10 x £250 investments and I need to withdraw 1 x £250 to my bank account. Is it possible for me to view which investment I will lose the least interest on future/unpaid repayments prior to withdrawing?
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