Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Mar 22, 2016 13:08:34 GMT
I sold out about £800 (3.7%) yesterday when lender offers were up at 4.2% or higher.... the proceeds to go into my holding account. No charges of any kind were imposed. It took about four hours to do, then I received a mailing confirming the transaction. All the principal was realised. The accrued interest was not, but is still listed to be paid on the date the original loan was to mature. oldgrumpy,, I did similar thing few weeks back when rate was at 4.0% and I sold a loan at 3.7%. Although it appeared there were no fees actually there were or will be. It is just they were not explicitly stated on that page. It was explained to me on one of the previous threads, can't remember the details. But as it was said above you'll have to compensate the difference to the lender that bought your part. And it is all in "terms and conditions". I can't wrap my head around all the details and intricacies of it but basically the lesson I learned is: selling loans of lower rates to get higher rate is NO GO. And of course that makes sense and RS must have build something in place to prevent it or make the deal fair to both parties.
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oldgrumpy
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Post by oldgrumpy on Mar 22, 2016 13:28:20 GMT
OK. westonkevRS Where will I see (in my above example) the amount I have to pay to compensate the buyer of my loan? The interest still shows as due on the 29 March. The principal has been repaid. No other figures are shown.
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am
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Post by am on Mar 22, 2016 13:41:26 GMT
I sold out about £800 (3.7%) yesterday when lender offers were up at 4.2% or higher.... the proceeds to go into my holding account. No charges of any kind were imposed. It took about four hours to do, then I received a mailing confirming the transaction. All the principal was realised. The accrued interest was not, but is still listed to be paid on the date the original loan was to mature. I sold an experimental £250 (3.9%) when lender offers were at 4.2%. This was not a complete contract. After several hours they gave me the quoted £249.90 capital and the £0.10 accrued interest. There seems to be an inconsistency between my experience and yours.
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spiral
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Post by spiral on Mar 22, 2016 14:05:52 GMT
am Do you know roughly how old these contracts were when you sold them? A quick calculation using the rates you mentioned would seem to imply (assuming I've got it right) that they would have been about 3 4 days old if no assignment fee was paid or about 18 days old if an assignment fee was paid. 3 4 days interest on 249.90 ~ 10p 18 days interest is ~47p less 13 days at higher rate ~37p = ~10p
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am
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Post by am on Mar 22, 2016 14:10:04 GMT
am Do you know roughly how old these contracts were when you sold them? A quick calculation using the rates you mentioned would seem to imply (assuming I've got it right) that they would have been about 3 days old if no assignment fee was paid or about 18 days old if an assignment fee was paid. 3 4 days interest on 249.90 ~ 10p 18 days interest is ~47p less 13 days at higher rate ~37p = ~10p They've reset the date on the remnants of the contract, so I don't have a definite number, but they were 4 or 5 days old. So, based on your arithmetic, 4 days old.
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spiral
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Post by spiral on Mar 22, 2016 14:23:25 GMT
They've reset the date on the remnants of the contract, so I don't have a definite number, but they were 4 or 5 days old. So, based on your arithmetic, 4 days old. So unless they matched at your original rate, it seems the isn't an assignment fee. My head hurts.
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am
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Post by am on Mar 22, 2016 14:33:01 GMT
They've reset the date on the remnants of the contract, so I don't have a definite number, but they were 4 or 5 days old. So, based on your arithmetic, 4 days old. So unless they matched at your original rate, it seems the isn't an assignment fee. My head hurts. As mentioned in an earlier message, I think that they waited until there were lender offers at my original rate, and matched at my original rate. This suggests that RS delay "sell outs" to avoid the need for assignment fees. What we don't know for sure is that there are never assignment fees for sell outs from the monthly market. What we are looking for ( westonkevRS ) is a explicit statement that there are never assignment fees when cashing in funds from the monthly market (and an explanation as to how RS avoids the need for them).
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Post by westonkevRS on Mar 22, 2016 16:23:52 GMT
Comrades,
I can't provide specific answers here on fees because (a) I don't know the process well enough, Customer Services are the experts, and (b) Customer Services will be able to see your account and the quote and therefore provide an exact answer.
This isn't the right location for official "statements" on sell-out fees, or assignment fees. But I'll raise this internally and ask that the FAQs are more explicit.
Kevin.
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james
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Post by james on Mar 22, 2016 17:05:42 GMT
I asked sometime ago and got the following response from customer services if that is of any help. Obviously, some of this is simplified for the monthly market now but we all know things are never quite what they seem with RS. That part is different from other discussions here where it was said to accrue to the Provision Fund. I don't know which is right, if either. At a minimum I expect all of those different fees to be itemised pre-sale and in account statements.
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Mar 22, 2016 17:19:05 GMT
Comrades, I can't provide specific answers here on fees because (a) I don't know the process well enough, Customer Services are the experts, and (b) Customer Services will be able to see your account and the quote and therefore provide an exact answer. This isn't the right location for official "statements" on sell-out fees, or assignment fees. But I'll raise this internally and ask that the FAQs are more explicit. Kevin. Some FAQ/wiki with few examples would be nice.
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Post by profunder on Mar 25, 2016 2:05:18 GMT
Comrades, I can't provide specific answers here on fees because (a) I don't know the process well enough, Customer Services are the experts, and (b) Customer Services will be able to see your account and the quote and therefore provide an exact answer. This isn't the right location for official "statements" on sell-out fees, or assignment fees. But I'll raise this internally and ask that the FAQs are more explicit. Kevin. I don't think there are any borrowers in the monthly and yearly markets. My understanding is these are simply fake markets where rate setter borrow money to finance loans which would otherwise go to the 3 year or 5 year market. So as long as they lend at 6.4% on the 5 year market for example as long as they are always borrowing cheaper in the short term market they are making additional profit for themselves. If the liquidity dries up in the 1 month market they can force you to roll over do they don't lose. That perfectly explains why no assignment fee would ever be needed - they are earning >6% anyway, plus their usual fees to the borrower. You are merely assigned temporary to an already know existing loan they have funded. When your contract expires ratesetter finds someone else the next day to take it over.
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Post by westonkevRS on Mar 25, 2016 7:21:01 GMT
Hi profunder, I'm afraid most of your message is wrong. A negligible amount of monthly money is used to fund loans over 2 years. It is typically used for loans up to 2 years. And monthly money is never used to fill a gap between the going rate in the longer market. So RateSetter doesn't "trouser" any difference between the monthly and 5-year market rates. In fact this monthly is never mixed in a loan with other market money. The interest paid by the customer is the market rate of that market, it's never mixed or differences trousered. Our fee is a separate service fee. So neither market is "fake", in fact the one year money is used directly in 1 year loans. Kevin.
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Post by p2plender on Mar 25, 2016 7:29:55 GMT
I don't think there are any borrowers in the monthly and yearly markets. My understanding is these are simply fake markets where rate setter borrow money to finance loans which would otherwise go to the 3 year or 5 year market. So as long as they lend at 6.4% on the 5 year market for example as long as they are always borrowing cheaper in the short term market they are making additional profit for themselves. If the liquidity dries up in the 1 month market they can force you to roll over do they don't lose. That perfectly explains why no assignment fee would ever be needed - they are earning >6% anyway, plus their usual fees to the borrower. You are merely assigned temporary to an already know existing loan they have funded. When your contract expires ratesetter finds someone else the next day to take it over. It's very good though that you can average 3.8% in the monthly because of the above do you not think? It may bring the 5 year rate down but again 6.3% and sometimes higher has easily been available the last couple of months. 5 years investing and not a penny lost in RS for me now. Meanwhile I have had several 5yr bonds maturing this year that have been paying me between 4.4 and 5.05%. They've given me an option to renew the bonds and for good measure, kindly offered me between 1.8% and 2.2%. It's very tempting..
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Post by profunder on Mar 25, 2016 21:49:57 GMT
Hi profunder, I'm afraid most of your message is wrong. A negligible amount of monthly money is used to fund loans over 2 years. It is typically used for loans up to 2 years. And monthly money is never used to fill a gap between the going rate in the longer market. So RateSetter doesn't "trouser" any difference between the monthly and 5-year market rates. In fact this monthly is never mixed in a loan with other market money. The interest paid by the customer is the market rate of that market, it's never mixed or differences trousered. Our fee is a separate service fee. So neither market is "fake", in fact the one year money is used directly in 1 year loans. Kevin. well it's good to know, but just makes it more confusing. I'm sure ratesetter said this market was managed by their treasury. So as a business then, how would I go around getting a loan at the monthly market rate, plus fees of course. If it's true - I might apply for a £1m loan, I have the security.
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Post by webbski9 on Apr 18, 2016 11:06:43 GMT
Has the Monthly Market been replaced by the Rolling Market ?
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