Post by ianf2014 on May 11, 2014 14:00:43 GMT
I was checking my latest loan offer of £100 which was accepted at 4.8% (3 year income market) on Friday and the interest applied looked lower than usual. I checked the 'Loan Contract Details and Schedule of Payments' page and 'Contract Document' of similar loans to try and understand why - but this one just looks wrong to me.
I checked that this loan and those I am comparing with had same number of repayments (36) and first payment was a month (within a couple of days) after the contract date.
One thing I have noticed is that on my other loans the 'Contract Interest Rate'(Borrowers rate) is usually 0.4% to 0.42% higher than the 'Contract Return' (the interest rate I get) but on this one it is less than the 'Contract Return' !
Details of loan that appears incorrect:-
Contract Date 9th May 2014.
Original Loan amount £100.
Contract Return 4.8%.
36 monthly payments. First 11th June 2014. Last 11th May 2017.
Total repaid 107.46.
Contract interest rate 4.7%.
Details of another loan for same amount, term and interest rate:-
Contract Date 31st March 2014.
Original Loan amount £100.
Contract Return 4.8%.
36 monthly payments. First 30th April 2014. Last 30th March 2017.
Total repaid 108.28.
Contract interest rate 5.22%.
I have other similar loaned amounts at 4.4% to 4.7% and they all give me higher returns.
I appear to be getting around 4.3% instead of 4.8%.
Have I misunderstood something?
Have RateSetter made a mistake?
Are these details provisional over the weekend and corrected on Mondays?
Are RateSetter lending at different rates and hoping we don't notice?
Any helpful suggestions appreciated.
I checked that this loan and those I am comparing with had same number of repayments (36) and first payment was a month (within a couple of days) after the contract date.
One thing I have noticed is that on my other loans the 'Contract Interest Rate'(Borrowers rate) is usually 0.4% to 0.42% higher than the 'Contract Return' (the interest rate I get) but on this one it is less than the 'Contract Return' !
Details of loan that appears incorrect:-
Contract Date 9th May 2014.
Original Loan amount £100.
Contract Return 4.8%.
36 monthly payments. First 11th June 2014. Last 11th May 2017.
Total repaid 107.46.
Contract interest rate 4.7%.
Details of another loan for same amount, term and interest rate:-
Contract Date 31st March 2014.
Original Loan amount £100.
Contract Return 4.8%.
36 monthly payments. First 30th April 2014. Last 30th March 2017.
Total repaid 108.28.
Contract interest rate 5.22%.
I have other similar loaned amounts at 4.4% to 4.7% and they all give me higher returns.
I appear to be getting around 4.3% instead of 4.8%.
Have I misunderstood something?
Have RateSetter made a mistake?
Are these details provisional over the weekend and corrected on Mondays?
Are RateSetter lending at different rates and hoping we don't notice?
Any helpful suggestions appreciated.
