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Post by nesako on Jan 10, 2019 9:54:08 GMT
Is 0.6% charged for the 3 year and 5 year ? Yes for both (plus the difference in rate if needed ) Which means that if you started investing when rates for 5 yr stood at 6%, your total exit fee will be around 1.3% (just tried on my account and quote is 1.33%) It will be even more if you started investing when rates stood at less than 6%.
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Post by nesako on Jan 10, 2019 9:13:34 GMT
Someone (seems to be a single investment) dumped exactly 300K on this loan yesterday, so someone seems to be confident enough!
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Post by nesako on Jan 7, 2019 13:28:12 GMT
Hey guys,
I was going round to see whether there are any other platforms which could offer me a decent risk/reward ratio and with the joining bonus and so far a great track record, I chose to put an initial £500 to Kuflink. I could have gone with the Auto account, but I noticed that with auto-accounts, while diversification is great, there are many loans there which are not the first charge and then there is only 5% first loss guarantee vs self-select option where it is 20%. Out of 3 loans currently available, N**** S**** - RM1 seems to be quite decent as LTV (which is quite low) is on the current land value as opposed to future development value and it is a big developer. My question therefore is - is it "good enough" to risk my whole £500 to this loan alone? (Yup, never good idea to put all in one loan, but I do not like other current options, and I can wait if this takes ages to shift on default...)? If anything better comes until the end of the reservation period, I can and will switch/diversify, but if nothing else comes by end of the month... any advice would be appreciated!
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Post by nesako on Jan 2, 2019 15:27:03 GMT
Since the forum does not have a dislike button. One positive from the looming Brexit disaster might be a JC Government. Although many of his ideas are witless (eg renationalising Royal Mail), there will be a boost to incomes and spending as Austerity is replaced by fairer taxation. There should also be a major boost to housebuilding (with resulting lower house prices) and possibly to manufacturing. The North will benefit at the cost of the London elite. Another year of the Tory right really would be a nightmare in 2019. Lol at fairer taxation. I and most of my colleagues have had to cut back on hours and declining much required additional work because of tax rates 60 - 140% ( yep that is not a typo, it’s do with pension tapering on defined benefit pensions) I had recently read analysis on this... pretty much 100% tax between 118 - 170K earnings with marginal Tax rate going over 100% between £118,800 - £122,600. It is really unfair for someone working double shifts, especially NHS surgeons who are now declining to work any overtime due to there being no financial gain to do so (well, there is a higher pension in the end...) causing longer NHS wait times etc. PS. I wish I was on 118K a year though, this is really mostly affecting more senior staff
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Post by nesako on Jan 2, 2019 15:14:06 GMT
Hi Matthew , there is another suggestion above which would incur no regulatory problems. What do you think? "I prefer easylender's suggestion above which allows new money to take a voluntary rate cut in order to buy up old loans at old rates, thus getting invested more quickly and also benefitting the sellers who avoid a haircut on selling their loans." Happy to look into a cashback option - it could kick in if matching times go beyond a certain agreed level e.g. 14 days. In the normal course of business it shouldn't be needed, but it would help in times like these. The issue with the rate cut option is that it's difficult to gauge how many people on both the buying and selling side would actually use it. We could create another secondary market for both sellers (i.e. sell now and incur an X% shortfall fee or wait for buyers at your rates and don't incur a fee) and buyers (buy now at X% or wait in the queue for Y%). There is something quite appealing about this for both sides, especially the seller where I can see this being a popular option if you have a window of required access e.g. no immediate need. However, as has been mentioned here before, waiting 30 days incurs roughly a 0.1% annualised reduction on current rates, so if you had an investor holding 6% loans (versus current rate of 6.5%) you'd have to be expecting a delay of 6 months for new money before it would be worth accepting this rate reduction for getting matched instantly. We would of course be completely transparent about this fact - do you think there would still be a demand on the buying side? Interested to hear your thoughts. This is assuming: people will be actually holding all the money for the whole 5 years and there will not be any early repayments for any of the loans, all loans will have a 5-year term and rates will stay at 6.5% or will keep going up. Almost impossible scenario for most, so in reality, purchasing loans at 6% vs 6.5% may not have a big difference for some. I must be one of the few who really wanted to reduce the stake due to Brexit uncertainty / more favourable climate for S&S investment, but my current effective exit "fee" is 1.4% of the investment and I do feel sort of "stuck" now. If rates go up yet again to say 7%, then exiting would be even more painful (to those who wish to reduce the investment).
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Post by nesako on Dec 26, 2018 0:05:54 GMT
Hmm, you seem to be all against GS and all for LW recently I have money in both and both platforms have their pros and cons (LW PF/Shield coverage is not as clear as GS and defaults seem to be exceeding expectations, plus add new money cash drag and cost for early withdrawal and you can see that it is not a platform without flaws either). I believe diversifying between both still makes sense. Current GS PF coverage is now comparable with Ratesetter (if we take into account "Future Contributions" as RS do and compare against the expected future defaults), though RS is way more established and larger, making GS offering much riskier. Personally, I will not be removing existing funds just yet, but will now stop adding new funds and will be monitoring the PF coverage closely. nesako - thanks for maintaining the history of provision fund coverage. I always take note of your posts on here and wondered whether you'd be reducing your stake as the coverage ratio fell below 5%. I wasn't expecting it to fall to as low as 3.5% (or 2.8% of the total available facility) and as I'm not prepared to increase my stake for the extra 2% then the standard 5.3% is currently too low for the risk and I'm in draw down. I've yet to analyse the statistics/blog in detail but the beauty of GS is that if I decide to reinvest on the back of that then it's straightforward to reinvest. Well, almost all of my current balance is earning 5.3% + 2% bonus, so for pretty much 7% I am OK to keep the balance here, but if I was not getting the bonus I would also be reducing, just as we did with the second account in my MRS name. There is hope for another founders contribution and since the coverage is now really low it is something they really should be considering. One more default without PF topup and I will be withdawing (really hoping it does not come to it as it would mean losing the bonus as well)
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Post by nesako on Dec 23, 2018 13:30:55 GMT
Yes there provision fund looks almost non existant. And looks like 2019 will be full of market turmoil. Better to be safe than sorry Hmm, you seem to be all against GS and all for LW recently I have money in both and both platforms have their pros and cons (LW PF/Shield coverage is not as clear as GS and defaults seem to be exceeding expectations, plus add new money cash drag and cost for early withdrawal and you can see that it is not a platform without flaws either). I believe diversifying between both still makes sense. Current GS PF coverage is now comparable with Ratesetter (if we take into account "Future Contributions" as RS do and compare against the expected future defaults), though RS is way more established and larger, making GS offering much riskier. Personally, I will not be removing existing funds just yet, but will now stop adding new funds and will be monitoring the PF coverage closely.
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Growth Street
20% bonus
Dec 14, 2018 16:39:05 GMT
Post by nesako on Dec 14, 2018 16:39:05 GMT
Seems like it will be dead on 15th as today is 14th and still waiting
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Post by nesako on Dec 9, 2018 22:39:54 GMT
I am mainly invested in RS and LW but was thinking to diversify and put some funds in GS. Was wondering if anyone has feedback about investing in gs? Is it worth a punt ? I have been investing with them from almost the very start and have no complaints at all. As long as they keep the provision fund levels up, I will keep investing. Founders are still adding fresh money in, so all good so far. I have PM'ed you the details of the new investor bonus they have with a link - in summary, you need to invest £5000+ for a year to get £200 bonus.
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Post by nesako on Dec 9, 2018 10:29:22 GMT
PM sent from me off the rebound Hmm tried it doing on the phone and sent to the wrong person whoops beans for Christmas for me then lol
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Post by nesako on Dec 9, 2018 0:06:01 GMT
Also looking for a referral link/code if I'm not too late? PM sent
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Post by nesako on Dec 6, 2018 11:10:55 GMT
Talking about the PF, it is quite a shame that statistics are not available until you register, so I did register and can now see that PF coverage is 95.9% (loans over 30d late). This is way below my comfort level for unsecured lending, but I will be keeping an eye on it to see whether it will improve by the next ISA season.
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Post by nesako on Nov 22, 2018 20:13:47 GMT
Nesako, thanks for the information , can you tell me how to access the stats, are they freely available or do we have to ask. I am considering taking advantage of the new bonus offering. Latest stats are here: www.growthstreet.co.uk/investing/statisticsHave not been updated since my last update
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Post by nesako on Nov 13, 2018 8:35:21 GMT
I have some invites remaining - just drop me a message if you would like to try it...
To be honest, there is like 1% chance this will come through in those 3 years, but they only take your name and e-mail, so there is 1% chance of "free money" at some point. I have used my "alternative" e-mail, so even if I start getting spammed, it will not be to my main account (I suggest you do the same).
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Post by nesako on Nov 6, 2018 13:18:18 GMT
The last time I checked CH (early October I think) the breakdown of the Company status (go and look at the summary page of any company on CH to see what I mean) of the companies with at least one active charge was as follows... 134 Active 2 Dissolved 2 In Administration 1 Insolvency Proceedings 3 Liquidation Obviously do your own research and all that (my data may not be 100% accurate because I can't search CH directly) but some of the information on charges may be out of date and displayed incorrectly (error on manual entry, for example), some of the liquidations may be voluntary, and other reasons that I don't understand! By the way, in the last month or so there has been another claim on the Loan Loss Provision of £100,453, if my calculations are correct. In the same period additional receipts (to the Loan Loss Provision) from borrowers totaled £38,721. I'll try and post on this later but tagging nesako who has done some good work on this is the past. I noticed the additional claim as well. If you strip out founder contributions the loss provision fund would be short £45k on a year to date basis (i.e deducting claims from investor contributions and recoveries) Yes, but the year is not yet over... it may just break even by the end of December (assuming no more claims are made this year)
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