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Post by pauliee on Jul 2, 2022 11:21:29 GMT
Not a good month for me
12 due to repay in June
1 repaid
11 kicked down the road
Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk.
Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds.
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scooter
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Post by scooter on Jul 2, 2022 13:16:59 GMT
They sent a survey form recently and I said exactly this. I also spoke with someone about it and they said that the penalty fees go towards keeping other costs down or nil (paraphrasing) Apart from the extortionate amount to transfer out an isa there is only the 0.25% to sell, so I guess they have a point. And there is no problem selling so.... let's just say most of us on here have experienced much worse situations at other providers.
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Post by df on Jul 2, 2022 19:51:14 GMT
Not a good month for me 12 due to repay in June 1 repaid 11 kicked down the road Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk. Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds. I've never experienced this yet because I sell prior to the expected end date. Curious how it works - do you still get the interest or does it stop when overdue and not extended?
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Post by Ace on Jul 2, 2022 21:06:27 GMT
Not a good month for me 12 due to repay in June 1 repaid 11 kicked down the road Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk. Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds. I've never experienced this yet because I sell prior to the expected end date. Curious how it works - do you still get the interest or does it stop when overdue and not extended? Normal interest continues to be paid to lenders until the date the capital is actually repaid. The issue is that Kuflink charge the borrower extra penalty interest when repayment is late, but they keep all the extra for themselves; unlike other platforms, who pay some of the extra penalty interest to lenders.
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Post by uksoul on Jul 3, 2022 2:13:45 GMT
Not a good month for me 12 due to repay in June 1 repaid 11 kicked down the road Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk. Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds. Similar situation myself but now have decided with Kuflink to sell from 1-2 mths before the loan repayment date for cashflow/reinvestment purposes. 2 of my other platforms pay penalty interest so have no prob sticking to the end with loans there.
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scooter
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Post by scooter on Jul 3, 2022 9:57:30 GMT
Not a good month for me 12 due to repay in June 1 repaid 11 kicked down the road Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk. Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds. I've never experienced this yet because I sell prior to the expected end date. Curious how it works - do you still get the interest or does it stop when overdue and not extended? Interesting tactic to sell before end date. My problem is that the older loans I have have better interest than the new ones coming through. I guess when/if rates go up there will be a flood of people doing this. It seems the challenges for p2p just keep on coming.
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Post by uksoul on Jul 3, 2022 10:07:02 GMT
I've never experienced this yet because I sell prior to the expected end date. Curious how it works - do you still get the interest or does it stop when overdue and not extended? Interesting tactic to sell before end date. My problem is that the older loans I have have better interest than the new ones coming through. I guess when/if rates go up there will be a flood of people doing this. It seems the challenges for p2p just keep on coming. The best advantage is where you can reinvest into higher interest rates. The platform is now/recently offering its` highest ever rates up to 8.83% so the timing has been very good the past couple of weeks.
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jcb208
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Post by jcb208 on Jul 4, 2022 8:26:31 GMT
Not saying for 1 minute they are any thing like Lendy as al my loans have repaid so far ,but it seems more and more are getting kicked down he road which makes you start to think, especially If your the ones caught up in Lendy and Fundingsecure
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scooter
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Post by scooter on Jul 4, 2022 11:28:20 GMT
Interesting tactic to sell before end date. My problem is that the older loans I have have better interest than the new ones coming through. I guess when/if rates go up there will be a flood of people doing this. It seems the challenges for p2p just keep on coming. The best advantage is where you can reinvest into higher interest rates. The platform is now/recently offering its` highest ever rates up to 8.83% so the timing has been very good the past couple of weeks. I had a look at doing this and have a couple of questions if I may: How long do they take to approve a sale request? If sold, do you get paid compounded interest or does it revert to monthly? Do you get interest and capital back or do you have to wait for interest? Are secondary market loans picked up by auto investors? What the heck is a mezzanine loan? It's over my head...... That's all I know about mezzanines! Thanks for any help.
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p2pfan
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Post by p2pfan on Jul 4, 2022 12:32:58 GMT
Not a good month for me 12 due to repay in June 1 repaid 11 kicked down the road Obviously you expect over runs and we are all subject to global supply chain issues and the effects of lockdowns etc but like KUF I should be compensated for the inconvenience and increased risk. Its time for Penalty Interest to be distributed to investors as I now have to sell some on the secondary market and pay the penalty as I need to realise some funds. Same experience here. Almost all my KUF loans have defaulted and not paid when they stated they would. They keep getting extended. It's very poor form on KUF's behalf. It's not fair for KUF to keep all the penalty interest for themselves. Lenders should most certainly get compensated for not getting their money back when promised and the additional risk etc. That's what happens on, for instance, CP, where lenders get 2% p.a. extra. There's risks involved with this massive ratio of 're-terms' as KUF euphemistically spin them to be. For instance, many loans hold retained interest during the initial duration of the loan. But, if the loan defaults and gets elongated, I assume KUF do not get a suitcase of money from the borrower to hold as additional liable interest for each extended period. Therefore, if the borrower completely defaults, not only will the capital be lost, but the interest for the extended period.
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Post by overthehill on Jul 4, 2022 12:35:05 GMT
The best advantage is where you can reinvest into higher interest rates. The platform is now/recently offering its` highest ever rates up to 8.83% so the timing has been very good the past couple of weeks. I had a look at doing this and have a couple of questions if I may: How long do they take to approve a sale request? If sold, do you get paid compounded interest or does it revert to monthly? Do you get interest and capital back or do you have to wait for interest? Are secondary market loans picked up by auto investors? What the heck is a mezzanine loan? It's over my head...... That's all I know about mezzanines! Thanks for any help.
can be 48 hours. based on a previous sale I would say compound interest rate.
capital and accrued interest paid at the same time. Not sure if buyer is paying accrued interest. auto investors - secondary loans - I doubt it. mezzanine means you are last to get paid. If the loan doesn't repay more than the LTV figure, you will lose all your capital and interest. All 1st,2nd,3rd charges get paid before mezzanine. The way outstanding interest is dealt with is important if your position is anywhere except 1st charge.
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Post by uksoul on Jul 4, 2022 12:52:47 GMT
The best advantage is where you can reinvest into higher interest rates. The platform is now/recently offering its` highest ever rates up to 8.83% so the timing has been very good the past couple of weeks. I had a look at doing this and have a couple of questions if I may: How long do they take to approve a sale request? 2 days min can take a few days longer occasionallyIf sold, do you get paid compounded interest or does it revert to monthly? Compounded interest Do you get interest and capital back or do you have to wait for interest? Both paid at onceAre secondary market loans picked up by auto investors? Self SelectWhat the heck is a mezzanine loan? It's over my head...... That's all I know about mezzanines! Simply it is the part of the loan that is last to be repaid -kuflink has 1st charge so that provides some comfort and also they have co invested in the Mezzaine loan they get paid last after investors. i just noticed Overhill has answered as well
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scooter
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Post by scooter on Jul 4, 2022 13:28:09 GMT
I had a look at doing this and have a couple of questions if I may: How long do they take to approve a sale request? If sold, do you get paid compounded interest or does it revert to monthly? Do you get interest and capital back or do you have to wait for interest? Are secondary market loans picked up by auto investors? What the heck is a mezzanine loan? It's over my head...... That's all I know about mezzanines! Thanks for any help.
can be 48 hours. based on a previous sale I would say compound interest rate.
capital and accrued interest paid at the same time. Not sure if buyer is paying accrued interest. auto investors - secondary loans - I doubt it. mezzanine means you are last to get paid. If the loan doesn't repay more than the LTV figure, you will lose all your capital and interest. All 1st,2nd,3rd charges get paid before mezzanine. The way outstanding interest is dealt with is important if your position is anywhere except 1st charge.
Thanks both for the answers. I am a bit risk averse so I don't think I will look into mezzanines any further. The big surprise to me is the interest. I don't think as a buyer I would want to pay out someone's 11 month plus interest payment. In all the other platforms I use you would just pay out for a portion of one month. The other problem I forsee in doing the flip towards the end of a loan, is that if it is not automated and takes 48 hours plus to even get it to show as for sale, the loan you wanted may have gone by the time it's sold.
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Post by overthehill on Jul 4, 2022 14:38:45 GMT
You only pay for the loan capital not the interest when you buy secondhand. The seller gets the accumulated interest up to the sale and then the remaining interest of the loan transfers to the buyer.
. Please learn how to use the quote feature. Now I've got someone else's comments attributed to me. Please delete your last post in this thread.
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rscal
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Post by rscal on Jul 4, 2022 16:19:02 GMT
Someone's not kidding about selling b4 the maturity of loans today. I have just checked and there are 90 loan parts totalling c.20k
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