coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Aug 24, 2020 11:08:22 GMT
(I was going to hide this away in a reply to a post on my 'Milestone' thread but decided it worthy of a thread of its own!
I noticed recently that my ISA contains 3 'New Contracts' in Access, all of which are non-amortising property loans, one of which stems from August last year and not due to repay a penny until July 2021! Just to rub salt into the wounds, I note that my rate on said loan is 3.9% - What on earth was I thinking of? Although that was probably a decent rate for Access at the time, I feel it serves to highlight some of the smoke and mirrors going on behind the scenes!
(also proof if needed that even experienced investors can make mistakes / fall into traps)
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Aug 24, 2020 11:40:51 GMT
(I was going to hide this away in a reply to a post on my 'Milestone' thread but decided it worthy of a thread of its own!
I noticed recently that my ISA contains 3 'New Contracts' in Access, all of which are non-amortising property loans, one of which stems from August last year and not due to repay a penny until July 2021! Just to rub salt into the wounds, I note that my rate on said loan is 3.9% - What on earth was I thinking of? Although that was probably a decent rate for Access at the time, I feel it serves to highlight some of the smoke and mirrors going on behind the scenes!
(also proof if needed that even experienced investors can make mistakes / fall into traps)
How do you mean smoke and mirrors...
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Post by scepticalinvestor on Aug 24, 2020 12:24:01 GMT
Ugh. property loans, one of which stems from August last year and not due to repay a penny until July 2021! Just to rub salt into the wounds, I note that my rate on said loan is 3.9%
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
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Post by coogaruk on Aug 24, 2020 15:35:54 GMT
How do you mean smoke and mirrors... Well if my memory serves me correctly around that time RS had for a while been regularly messing around with certain terms and /or how accounts operated and only introducing them 'by blog'. The changes were usually communicated only via a link in the monthly lender statements. Lenders who merely used these statements to check upon the interest their account(s) had earned in the previous month could have been forgiven for overlooking those changes. Many moaned about it on this forum - myself probably included - even though at the time I decided to stick with it.
The Access loan that I refer to here pre-dates Access so must have started life as a Rolling contract. I've done a bit of further research to try and refresh my memory and have come across two blog posts relative to what I have set out above: One from July 2018 headed "Rate-setting in the Rolling market" (a short time after any actual 'Rolling' had ceased) and another from January 2019 "Managing supply and demand" (allowing property loans to be funded by Rolling).
That's what I mean by smoke and mirrors.
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gmd78
Posts: 57
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Post by gmd78 on Sept 18, 2020 12:46:24 GMT
Quote: Lenders who merely used these statements to check upon the interest their account(s) had earned in the previous month could have been forgiven for overlooking those changes. :Unquote
Count me in on that one, you’ve probably noticed I’ve been on the warpath just recently. Witness, some of my recent loans that exceed 100k at 2.8% to ostensibly wealthy property developers, show no repayment until 2022!
Looking back, the way these “cheap as chips” loans were deftly transferred from the rolling market to access, is in my view, nothing short of subterfuge.
Subsequently quoting T&C’s as the underlying raison d'être for those furtive manoeuvres doesn’t cut any ice with me.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Sept 18, 2020 12:54:29 GMT
Quote: Lenders who merely used these statements to check upon the interest their account(s) had earned in the previous month could have been forgiven for overlooking those changes. :Unquote Count me in on that one, you’ve probably noticed I’ve been on the warpath just recently. Witness, some of my recent loans that exceed 100k at 2.8% to ostensibly wealthy property developers, show no repayment until 2022! Looking back, the way these “cheap as chips” loans were deftly transferred from the rolling market to access, is in my view, nothing short of subterfuge. Subsequently quoting T&C’s as the underlying raison d'être for those furtive manoeuvres doesn’t cut any ice with me. well then... make a complaint
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gmd78
Posts: 57
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Post by gmd78 on Sept 18, 2020 13:05:51 GMT
Quote: Lenders who merely used these statements to check upon the interest their account(s) had earned in the previous month could have been forgiven for overlooking those changes. :Unquote Count me in on that one, you’ve probably noticed I’ve been on the warpath just recently. Witness, some of my recent loans that exceed 100k at 2.8% to ostensibly wealthy property developers, show no repayment until 2022! Looking back, the way these “cheap as chips” loans were deftly transferred from the rolling market to access, is in my view, nothing short of subterfuge. Subsequently quoting T&C’s as the underlying raison d'être for those furtive manoeuvres doesn’t cut any ice with me. well then... make a complaint You can be well assured that will come at the right time and place, in the meantime, I'll be keeping a close eye on any other developments that affect capital repayments on my account - forget the interest at 1.5% I've already written that off.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Sept 18, 2020 13:58:09 GMT
well then... make a complaint You can be well assured that will come at the right time and place, in the meantime, I'll be keeping a close eye on any other developments that affect capital repayments on my account - forget the interest at 1.5% I've already written that off. why wait... there is nothing to gain from waiting
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gmd78
Posts: 57
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Post by gmd78 on Sept 18, 2020 14:33:04 GMT
You can be well assured that will come at the right time and place and not at the urging of any third party. In the meantime, I'll be keeping a close eye on any other developments that affect capital repayments on my account - forget the interest at 1.5% I've already written that off.
Edited to suit - apologies, I should have made my response clearer.
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