nairda
Member of DD Central
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Post by nairda on Jul 22, 2018 20:23:39 GMT
Because fees are not tax deductable BM is not competitive for higher rate taxpayers. Shame thats how they built the business model, but paying tax on the GROSS return is just plain daft. I might reconsider if ISAble, just for diversification. Fortunately I am not a higher rate tax payer, but the fees are still a significant amount. Had there been an ISA option I may well have decided to remain with BondMason.
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Post by portlandbill on Jul 23, 2018 10:43:15 GMT
Out of curiosity - with the dearth of high-rate loans recently, how is Bondmason corner these days for existing investors? This forum seems very quiet about them, and there seems to have been only one trustpilot review about them in the last 8 months. From their front page, it looks like they're very much more focused on direct lending these days. What sort of loans has that resulted in, do we know? Being a black box type scheme, there's very little anyone can monitor other than the not-too-helpful updates (which aren't dated and show no history) of what's in the watchlist and recoveries (which are getting to the worrying stage in my case, although no write-offs yet). I'm still holding on with my small investment (was going to be bigger depending on how things went) and I'm not a higher rate taxpayer now (low income now, but more when I decide to retire and draw on my pensions). I'm also down to 93% invested (with a target of 8.34%) which suggests new loans are becoming harder to obtain.
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Post by df on Jul 24, 2018 14:18:34 GMT
Out of curiosity - with the dearth of high-rate loans recently, how is Bondmason corner these days for existing investors? This forum seems very quiet about them, and there seems to have been only one trustpilot review about them in the last 8 months. From their front page, it looks like they're very much more focused on direct lending these days. What sort of loans has that resulted in, do we know? Being a black box type scheme, there's very little anyone can monitor other than the not-too-helpful updates (which aren't dated and show no history) of what's in the watchlist and recoveries (which are getting to the worrying stage in my case, although no write-offs yet). I'm still holding on with my small investment (was going to be bigger depending on how things went) and I'm not a higher rate taxpayer now (low income now, but more when I decide to retire and draw on my pensions). I'm also down to 93% invested (with a target of 8.34%) which suggests new loans are becoming harder to obtain. I was down to 90% invested for several weeks. Made a withdrawal leaving the minimum requirement for running the account and still have some cash left, enough to get invested in 5-6 loans. Looks like you say, BM is experiencing a shortage of loans.
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ashtondav
Member of DD Central
Posts: 1,805
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Post by ashtondav on Jul 24, 2018 18:20:35 GMT
Might as well issue a bond and end this nonsense of the non tax deductable fee which renders the product uncompetititve (as p2p) for any 40%+ taxpayer. Plus ISA.
I would be happy with a return 6% tax free. As long as the muppets don't go down the Collateral "due dilligence" route again....
BM. Sort the business model. Now.
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Post by stevefindlay on Jul 24, 2018 20:52:22 GMT
Out of curiosity - with the dearth of high-rate loans recently, how is Bondmason corner these days for existing investors? This forum seems very quiet about them, and there seems to have been only one trustpilot review about them in the last 8 months. From their front page, it looks like they're very much more focused on direct lending these days. What sort of loans has that resulted in, do we know? We are seeing rates come down across the industry, and at a faster rate on P2P platforms. Our average rate is still above 8%, but it has dropped from 9% from about 18-24 months ago.
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Post by stevefindlay on Jul 24, 2018 20:56:03 GMT
My headline rate says 8.1% before fees and bad debt. Unfortunately a few bad debts and quite a few 'in recovery' including a number of Col loans (apparently). With a minimum 1% diversification defaults are a real problem. My recent loans seem to be predominantly invoice discounting and bridging with some business, working capital and development, no idea who to. A bit disillusioned with the concept, but not selling off yet. After much thought I have just liquidated my holdings, though I still have about 16% of my total investment tied up in Recovery (19 loans), Watchlist (9 loans) and Write offs (1 loan). I am hoping most of these come good in the fullness of time, but there will probably be a few more write offs and that will rapidly dent the returns to the point where there are better offerings elsewhere. The fees at 1.5%, and not tax deductible meaning a "real" fee of 1.875%, makes a very big hole in the returns too. The Collateral problems constitute 7 of the 19 loans in recovery, a ridiculously high percentage, and accounting for roughly half the amount of money in recovery too. Oh well. nairda Your portfolio is consistent with the expectation we have across the platform, with 15% of loans going onto our Watchlist (or worse) during their life, yet losses have been less than 0.4% since starting. Please see this post for details: p2pindependentforum.com/thread/12820/life-bondmason-watchlist-recovery-default
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bugs4me
Member of DD Central
Posts: 1,841
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Post by bugs4me on Jul 25, 2018 11:20:27 GMT
Might as well issue a bond and end this nonsense of the non tax deductable fee which renders the product uncompetititve (as p2p) for any 40%+ taxpayer. Plus ISA.
I would be happy with a return 6% tax free. As long as the muppets don't go down the Collateral "due dilligence" route again....
BM. Sort the business model. Now.
Nice idea but doubt if BM could make it work. My headline rate 7.93% but actual IRR shows 5.05%. Has been hovering in the lower 5's for a couple of months so cash drag now taken out of the equation (mainly). No doubt potential non-paying defaults are now hitting the return.
So the reality is BM (for me) exists for diversification only. Investment will not be increasing and I'll probably start withdrawing soon. Sad as even though the tax position is not good, the black box BM idea is good. It's the actual net returns that are questionable.
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Post by sayyestocress on Jul 25, 2018 11:46:13 GMT
Might as well issue a bond <snip> Plus ISA. I got the impression a few months back that something like this was already in the works.
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garfield
Member of DD Central
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Post by garfield on Jul 25, 2018 12:07:14 GMT
Well I'm sticking with BM (as a non-taxpayer). I like their approach and you can't get this kind of diversification elsewhere. After investing with BM for 9 months and becoming disillusioned with P2P, I've decided I don't want to spend time researching loans and and I'm more than happy to pay a fee to someone else who has the expertise I lack. It takes the worry out of investing. I'm also buffering myself against the next recession.
For the record, my current rate of return is 8.22%. I seem to have just one COLL Loan for £50. My OH's a/c is held in a SIPP (opened January of this year) and is showing a current return of 8.38%. We're in it for the long haul!
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Post by sayyestocress on Aug 2, 2018 12:35:27 GMT
So it seems the ifisa-able bonds are launching in September; 3.35% and 3.85% for 1 and 3 year terms respectively, which is about the same as a normal ~8% account after 40% tax and the fee, so doesn't seem worth it unless they have a lower risk profile? I was anticipating something more like 5%.
Also seems like a brand new company has been incorporated to offer these products; Chiltern Bondco.
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Post by stevefindlay on Aug 2, 2018 14:49:00 GMT
So it seems the ifisa-able bonds are launching in September; 3.35% and 3.85% for 1 and 3 year terms respectively, which is about the same as a normal ~8% account after 40% tax and the fee, so doesn't seem worth it unless they have a lower risk profile? I was anticipating something more like 5%. Also seems like a brand new company has been incorporated to offer these products; Chiltern Bondco. They will benefit from an equity buffer (similar to a provision fund). Feedback we received was that ISA clients preferred a more certain outcome, with the loss buffer / protection. More details to follow in the coming weeks...
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keystone
Member of DD Central
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Post by keystone on Aug 2, 2018 17:59:35 GMT
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