dermot
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Post by dermot on Mar 16, 2016 14:10:01 GMT
At the moment, I'm happy to let repayments carry on rolling up into my GBBA account, but at some future time, I'll want to start gradually drawing down a bit.
Rather like the length of a piece of string, I'm sure there is no definitive answer to this, but I wonder what sort of time delay there is in taking modest (a few hundred to maybe 1K) withdrawals?
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Post by chris on Mar 16, 2016 14:23:10 GMT
At the moment not much - maybe 10 minutes or so depending on how busy the servers are. That's not guaranteed in the future if supply exceeds demand which is where it becomes more of a "piece of string" question.
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min
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Post by min on Mar 16, 2016 15:16:50 GMT
At the moment not much - maybe 10 minutes or so depending on how busy the servers are. That's not guaranteed in the future if supply exceeds demand which is where it becomes more of a "piece of string" question. I can concur with Chris. Put a withdrawal request in for £900 yesterday and it was withdrawn in about 10 minutes.
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dermot
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Post by dermot on Mar 16, 2016 16:37:16 GMT
Thanks for the responses, that seems fine.
In practice, I can't see that a week or two would cause any particular problem - once a sell request has been made, I assume it still accumulates interest at the GBBA rate until actually snapped up by someone?
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Post by chris on Mar 16, 2016 17:11:59 GMT
Thanks for the responses, that seems fine. In practice, I can't see that a week or two would cause any particular problem - once a sell request has been made, I assume it still accumulates interest at the GBBA rate until actually snapped up by someone? Yes, although you aren't paid that accrued interest at the point of sale as it would be unfair on the buyer to assume liability for the borrower making the next repayment. You are paid the interest when the borrower pays it.
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dermot
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Post by dermot on Mar 16, 2016 22:11:08 GMT
Ah yes, that makes sense.
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bababill
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Post by bababill on Mar 30, 2016 10:30:50 GMT
Good post. Could be useful if we somehow keep updated info..
I started a withdrawal request from GBBA on the afternoon of Feb 24 and now on the 30th at 11 am I have been able to withdraw around £8000.00 so far.
So that makes an average of approximately £1150 per day.
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Post by profunder on Mar 30, 2016 10:48:26 GMT
Good post. Could be useful if we somehow keep updated info.. I started a withdrawal request from GBBA on the afternoon of Feb 24 and now on the 30th at 11 am I have been able to withdraw around £8000.00 so far. So that makes an average of approximately £1150 per day. You are guaranteed to get payments out in line with repayments on the underlying loans. However this will be faster if someone else wants to invest in GBBA or the underlying loans directly. When liquidity is short like now this typically means the process will be much slower, but that's why there is a quick access version which keeps cash pot. If you know you'll be wanting money soon, sell from GBBA early and move to QAA. If you need money with guarantee, don't invest in long term loans in the hope you can sell them - which is what it does. The account is a great product, nothing else like it. But remember there is no guarantee other than the repayment dates of the underlying loans.
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bababill
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Post by bababill on Mar 30, 2016 10:58:51 GMT
If you know you'll be wanting money soon, sell from GBBA early and move to QAA. Agreed with everything said above. This post could be useful to help define what ' early' means as we move forwards. So for example in todays current climate if one wants say £1000 then a couple days notice should be sufficient. But if one wants £10,000 more then 8 days is needed and still counting.
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Post by profunder on Mar 30, 2016 11:07:17 GMT
If you know you'll be wanting money soon, sell from GBBA early and move to QAA. Agreed with everything said above. This post could be useful to help define what ' early' means as we move forwards. So for example in todays current climate if one wants say £1000 then a couple days notice should be sufficient. But if one wants £10,000 more then 8 days is needed and still counting. Also would depends on how much you got in the account though. As repayments would are guaranteed to be returned, which are probably about 2.5% per month of balance. But what happens when you withdraw £10k, then I withdraw £100k. A buyer comes and wants to invest £15k - this would need clarifying to see if we can estimate a daily withdraw limit.
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mikes1531
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Post by mikes1531 on Apr 15, 2016 20:30:56 GMT
The account is a great product, nothing else like it. But remember there is no guarantee other than the repayment dates of the underlying loans. Based on my AC experience, I think that the statement above should have everything after the word "guarantee" deleted!  I realise that there is a PF, but AFAIK that won't be asked to pay out as soon as a payment/maturity is missed. AIUI, the PF isn't likely to pay out until after all security has been liquidated and a loss is definite. Has AC said differently?
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Post by profunder on Apr 15, 2016 20:46:02 GMT
The account is a great product, nothing else like it. But remember there is no guarantee other than the repayment dates of the underlying loans. Based on my AC experience, I think that the statement above should have everything after the word "guarantee" deleted! I realise that there is a PF, but AFAIK that won't be asked to pay out as soon as a payment/maturity is missed. AIUI, the PF isn't likely to pay out until after all security has been liquidated and a loss is definite. Has AC said differently? That seems strange, the PF should pay out early and then assume ownership of the loan. This is how it works elsewhere, is that not accurate at AC? Otherwise the PF is going to end up paying even more in extra interest. If your right then "repayment dates of" needs changing to "repayments made on".
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mikes1531
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Post by mikes1531 on Apr 15, 2016 21:21:45 GMT
Based on my AC experience, I think that the statement above should have everything after the word "guarantee" deleted! I realise that there is a PF, but AFAIK that won't be asked to pay out as soon as a payment/maturity is missed. AIUI, the PF isn't likely to pay out until after all security has been liquidated and a loss is definite. Has AC said differently? That seems strange, the PF should pay out early and then assume ownership of the loan. This is how it works elsewhere, is that not accurate at AC? Otherwise the PF is going to end up paying even more in extra interest. If your right then "repayment dates of" needs changing to "repayments made on". I seem to need to change my understanding. According to the AC website, the PF is "...intended to help to protect investors from income delays..." so it ought to be paying out as soon as a payment is missed. Having read that, though, I don't know whether that's actually happening. Is anyone here watching their GBBA closely enough to know whether any missed payments actually are being made up promptly from the PF? (i.e. Has your GBBA received any payments that are shown as having been missed/delayed in the loan's repayment performance?) Or are loans declared to be no longer GBBA-eligible and sold out of the GBBA as soon as there's a monitoring event?
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bigfoot12
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Post by bigfoot12 on Apr 16, 2016 7:56:58 GMT
That seems strange, the PF should pay out early and then assume ownership of the loan. This is how it works elsewhere, is that not accurate at AC? Otherwise the PF is going to end up paying even more in extra interest. If your right then "repayment dates of" needs changing to "repayments made on". I seem to need to change my understanding. According to the AC website, the PF is "...intended to help to protect investors from income delays..." so it ought to be paying out as soon as a payment is missed. Having read that, though, I don't know whether that's actually happening. Is anyone here watching their GBBA closely enough to know whether any missed payments actually are being made up promptly from the PF? (i.e. Has your GBBA received any payments that are shown as having been missed/delayed in the loan's repayment performance?) Or are loans declared to be no longer GBBA-eligible and sold out of the GBBA as soon as there's a monitoring event? I have created a new thread to ask this question.
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dermot
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Post by dermot on Apr 30, 2016 12:53:07 GMT
Agreed with everything said above. This post could be useful to help define what ' early' means as we move forwards. So for example in todays current climate if one wants say £1000 then a couple days notice should be sufficient. But if one wants £10,000 more then 8 days is needed and still counting. Also would depends on how much you got in the account though. As repayments would are guaranteed to be returned, which are probably about 2.5% per month of balance. But what happens when you withdraw £10k, then I withdraw £100k. A buyer comes and wants to invest £15k - this would need clarifying to see if we can estimate a daily withdraw limit. Useful to know - and of that approx 2.5%, what sort of proportion would be interest - ie subject to tax? Just received the first bank statement (for an interest-bearing current account) of the new financial year and - as expected - no tax has been withheld under new HMRC rules in this years budget. D
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