am
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Post by am on Mar 23, 2016 9:08:52 GMT
I think your OP did not make your strategy clear enough. Selling out from older loans can get very expensive because the adjustment is applied to the whole loan, not just the bit that is left. Suppose the only loan you've got left is the £100 balance of a loan that was £1,000 when made. If you sell out, the interest adjustment is going to be about 5 times what it would have been if had applied to just the £100. The same principle applies if you are just nibbling at your most recent loans, but the effect will be much smaller. Given all the ambiguity and confusion about how sell out works, can you quote chapter and verse on the interest adjustment applying to the whole of the loan and not just to the residue. (I took a quote on my 5 year money yesterday, which has been in on average just under a year. The quoted charge was a little under 3%, which is about what I would have expected on interest rate differentials applied to the residue of the contracts; but at the current age of the contracts the effect of that feature of your model would still be relatively small. Given that I can't plug in accurate numbers for interest rate differentials I don't think I can distinguish the models experimentally.)
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pikestaff
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Post by pikestaff on Mar 23, 2016 11:16:59 GMT
Given all the ambiguity and confusion about how sell out works, can you quote chapter and verse on the interest adjustment applying to the whole of the loan and not just to the residue. Sadly not. I think that's how it works, based on this post p2pindependentforum.com/post/67610/thread and other older posts in similar vein, some of which were more detailed. However, the slightly ambiguous T&Cs could be read otherwise. The way to test it would be to get a bunch of quotes for different amounts of a mature portfolio. You should be able to distinguish the models for the more mature loans even if it's too hard for those that are only a year or so old.
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Post by uncletone on Mar 25, 2016 22:24:21 GMT
... My instant access money earns 1% in a Building Society. It is not a rate I like but at least it is covered by FSCS. RCI Bank: 1.45%. Covered by European guarantee up to 100,000 euros. Currently the best rate, apparently. I hope so, that's where my beer money currently resides.
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alender
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Post by alender on Mar 25, 2016 23:44:40 GMT
Like you I use RCI but only after I have filled all 3% + current accounts that I can find protected by FSCS, I have now have £46,000 in these. All these give instant access via debit card and faster payments not the 1 to 4 days (if you include weekends and payments that arrive after 5pm) that I get from RS. I also have monthly saving accounts paying up to 5% which also give instant access.
This can be tripled by using another person and joint accounts. I would not commit these funds to RS as IMHO the risk and lack of access to funds are not justified by the current rates. However until I can find someone where better to balance out my property and equity investments (I have substantially more invested in each of these than P2P), I will use P2P for excess funds.
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jonah
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Post by jonah on Mar 26, 2016 8:02:51 GMT
Like you I use RCI but only after I have filled all 3% + current accounts that I can find protected by FSCS, I have now have £46,000 in these. Tsb 2000 @ 5% nationwide* 2500 @ 5% lloyds 5000 @ 4% bank of Scotland** 15000 @ 3% tesco*** 6000 @ 3% santander**** 20000 @ 3% That makes over 50k. Some of those accounts require various hoops such as money per month or direct debits so please DYOR Add in the regular savers from just the above (nw 500, tsb 250, lloyds 400, Santander 200) and that another 1350 a month in Fscs all over 4%. That doesn't count the 3 hsbc based regular savers all at 6%. So you can easily get quite a lot into Fscs accounts well over 1.x%. * for 1 year only, but the if you close the account and wait a year you can repeat. ** via 3x accounts and vantage *** via 2x accounts **** has a non avoidable £5 fee a month. But include some household bills via direct debit and this can be offset
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Post by uncletone on Mar 26, 2016 9:44:49 GMT
I gave up on putting a monthly thousand into the Nationwide regular savings account when it was over 40K and I discovered that if one dares to not pay in one month, or even draw some out, you lose the month's interest on the whole balance. I was lucky enough to get into TSB when you could open six accounts with your spouse (two each and two joint). I don't know why my pair of brain cells went straight to RCI. Probably an age thing....
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alender
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Post by alender on Mar 26, 2016 10:03:20 GMT
I gave up on putting a monthly thousand into the Nationwide regular savings account when it was over 40K and I discovered that if one dares to not pay in one month Check out the Nationwide Flexclusive Regular Saver, it is fairly new pays 5% and I believe there are no conditions on access and missing payments.
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alender
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Post by alender on Mar 26, 2016 10:26:54 GMT
Tsb 2000 @ 5% nationwide* 2500 @ 5% lloyds 5000 @ 4% bank of Scotland** 15000 @ 3% tesco*** 6000 @ 3% santander**** 20000 @ 3% That makes over 50k. Some of those accounts require various hoops such as money per month or direct debits so please DYOR Add in the regular savers from just the above (nw 500, tsb 250, lloyds 400, Santander 200) and that another 1350 a month in Fscs all over 4%. That doesn't count the 3 hsbc based regular savers all at 6%. So you can easily get quite a lot into Fscs accounts well over 1.x%. * for 1 year only, but the if you close the account and wait a year you can repeat. ** via 3x accounts and vantage *** via 2x accounts **** has a non avoidable £5 fee a month. But include some household bills via direct debit and this can be offset Just checked and I found I have £48,000 , these are the same accounts as you except for the Nationwide and the regular savers as these are only for one year and can’t be bother by teaser rates. Only the Santander requires direct debits and has a fee and but this is more than covered by the cash back on the direct debits.
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Post by brokenbiscuits on Mar 28, 2016 10:22:55 GMT
My very recent experience.
I pulled out about 5% of my total holdings and there was a charge that amounted to 0.37%.
2 weeks later I pulled out about 10% of what was left and I paid just over 1%.
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sl75
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Post by sl75 on Mar 31, 2016 10:34:16 GMT
Then I noticed I cannot liquidate it all, the amount I could withdraw is capped at around £3800 (just under actually, not a round figure). Any request for a quote for an amount over £3800 gives me the same answer. That seems unusual, because there is plenty of lender demand that looks like it could match. The amount over £3800 is probably comprised of loans individually smaller than £10, which are not allowed to be sold. These will be very common in a mature portfolio from one of the "income" markets, especially if you were using automatic re-investment of your repayments, which will have generated many small loans that (after some repayments) will be below £10 each.
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am
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Post by am on Apr 2, 2016 14:17:58 GMT
Then I noticed I cannot liquidate it all, the amount I could withdraw is capped at around £3800 (just under actually, not a round figure). Any request for a quote for an amount over £3800 gives me the same answer. That seems unusual, because there is plenty of lender demand that looks like it could match. The amount over £3800 is probably comprised of loans individually smaller than £10, which are not allowed to be sold. These will be very common in a mature portfolio from one of the "income" markets, especially if you were using automatic re-investment of your repayments, which will have generated many small loans that (after some repayments) will be below £10 each. Two questions come up. 1) How do you know that this is the case? (It's plausible, but the restriction isn't necessary.) 2) Do RS make this restriction clear in their description of "sellout?
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sl75
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Post by sl75 on Apr 2, 2016 17:39:55 GMT
The amount over £3800 is probably comprised of loans individually smaller than £10, which are not allowed to be sold. These will be very common in a mature portfolio from one of the "income" markets, especially if you were using automatic re-investment of your repayments, which will have generated many small loans that (after some repayments) will be below £10 each. Two questions come up. 1) How do you know that this is the case? (It's plausible, but the restriction isn't necessary.) 2) Do RS make this restriction clear in their description of "sellout? See note 2 on the sellout page itself.
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am
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Post by am on Apr 2, 2016 19:59:08 GMT
Two questions come up. 1) How do you know that this is the case? (It's plausible, but the restriction isn't necessary.) 2) Do RS make this restriction clear in their description of "sellout? See note 2 on the sellout page itself. Thanks. (I was looking in the wrong place - the announcement on the blog.)
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