jonah
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Post by jonah on Jan 15, 2017 10:28:52 GMT
Could someone please guide me through the procedure of cashing in loans. Providing the penalty is not too high I would like to raise some money I have in 1 year loans that I've had for a couple of months. They are at 4%, so would I take a hit on my capital or just on a reduced interest return. Thanks. Select withdraw from the left menu. select sellout from the lower right. type the amounts in whichever markets you want. Select the review option. CHECK ALL THE NUMBERS INCLUDING ANY FEES. Click confirm. I believe that this process can take a while to complete, i.e. Minutes or hours. if you want to take the cash off platform then click withdraw from the left menu, one off withdrawal in the top left, type in the number you want, click next, click confirm.
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Post by caveman38 on Jan 15, 2017 10:57:30 GMT
Thanks for the reply. Can you cancel request ie. not confirm if the penalties are too high?
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adrianc
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Post by adrianc on Jan 15, 2017 13:17:03 GMT
Thanks for the reply. Can you cancel request ie. not confirm if the penalties are too high? Yes.
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am
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Post by am on Jan 15, 2017 17:29:43 GMT
Thanks for the reply. Can you cancel request ie. not confirm if the penalties are too high? Removing money from the one year market shouldn't be too bad. The difference in rates is around 1% or less, and the clawback will be reduced proportionately to how long you have been invested. The LIFO nature of sellout minimises the cost if you're not withdrawing everything. The general trends in rates has been downwards, so there shouldn't be an assignment fee, which is the potential kicker in sellout. I'd guess that you'd get away with 0.3%, but you can get a no-obligation quote from RS anyway, as people have described.
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Post by caveman38 on Jan 16, 2017 5:47:02 GMT
Thanks all for the info and advice.
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Post by rarrar on Jan 17, 2017 9:47:28 GMT
If you don't need to withdraw all the money in 1 market you may find the %cost is much lower if only a proportion of the money on loan is cashed in. I found the sellout tool easy to use to keep trying different amounts to sellout and see the costs. Found the 3 year market had the highest % costs for me, though I understand this depends a lot on how long the loans have to run.
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nairda
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Post by nairda on Feb 1, 2017 21:41:47 GMT
I have just been playing around with selling out from the 5 year market and I have just noticed something that can't be a coincidence. If I try and sell any multiple of £1000 I always get the amount closest and above the requested figure, which is fair enough, plus any outstanding interest. The fee is ALWAYS exactly an amount that will reduce the final repayment to the requested figure. As an example, if I request £6000, the sellout details are:
Capital returned £6,124.45 Outstanding Interest £12.51 Exit Value £6,136.96 Fees (£136.96) Total £6,000.00.
As I said this happens for any multiple of £1000. I wonder why I smell a rat here.
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adrianc
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Post by adrianc on Feb 1, 2017 21:50:24 GMT
I have just been playing around with selling out from the 5 year market and I have just noticed something that can't be a coincidence. If I try and sell any multiple of £1000 I always get the amount closest and above the requested figure, which is fair enough, plus any outstanding interest. The fee is ALWAYS exactly an amount that will reduce the final repayment to the requested figure. As an example, if I request £6000, the sellout details are: Capital returned £6,124.45 Outstanding Interest £12.51 Exit Value £6,136.96 Fees (£136.96) Total £6,000.00. As I said this happens for any multiple of £1000. I wonder why I smell a rat here. No rat. You want to take £6k out, so it works out how much you need to sell out so that you've got £6k available to take out. It'll do it for any number, not just a round £k.
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nairda
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Post by nairda on Feb 1, 2017 22:43:34 GMT
OK, so the algorithm sort of works backwards from the desired sum to determine how much you need to withdraw. I had assumed it initially took as many loans as necessary to exceed the requested amount then calculated the fees etc. Thanks for the clarification.
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Post by ruralres66 on Feb 28, 2017 21:46:26 GMT
New average?........The average Sell Out fee (across our 1 and 5 year markets) is 1.31%
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Post by GSV3MIaC on Mar 1, 2017 7:40:52 GMT
But % of what? I suspect that it might be % of initial contact? My 5 year sellout came in over 6% of amount sold.
Of course the number quoted may be 'those who chose to sell'?
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am
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Post by am on Mar 1, 2017 12:44:47 GMT
But % of what? I suspect that it might be % of initial contact? My 5 year sellout came in over 6% of amount sold. Of course the number quoted may be 'those who chose to sell'? I had assumed that - that the average sell out fee was the average sell out fee charged (weighted by transaction or weighted by value?) on actual withdrawals rather than the average sell out fee to clear all current accounts.
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Post by GSV3MIaC on Mar 1, 2017 15:16:28 GMT
Yes, I suspect it is 'actual withdrawals' (thus ignoring the people who said "I ain't paying THAT much!"), but even then, is it % of what was withdrawn, or % of the original loan contracts? .. no difference if you withdraw on day one, but 4 years into a 5 year contract it's make a heck of a lot of difference whether you divide by amount remaining, or original loan size.
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