Investor
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Post by Investor on Sept 1, 2014 21:26:01 GMT
This one was upfront only with no option for monthly according to the quote from savingstream below. Wonder how they will deal with paying 6 months interest upfront when the minimum term is only 3 months and the borrower has the option to repay in 3 months "This is a 6 month loan with a minimum term of 3 months. The property valuation is available above. The loan has not gone live yet, however Lendy will guarantee to cover all interest accrued, should the loan not go live for any reason. All investors will earn 12%pa immediately upon commitment to this loan. Upfront interest will be paid upon go live of the loan."
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Investor
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Post by Investor on Aug 26, 2014 14:22:44 GMT
My point is that the cashback is presumably designed to attract new ££ onto the platform - if a lot of it is just flipped money that would seem to defeat the object. In order to flip money from an older loan into the new PBL, there has to be an investor willing to pick up the loan parts offered for sale. To a large extent, the money for those purchases probably is 'new' money that wouldn't be invested in SS if it weren't for the availability of the parts for sale. So SS still win to the extent that the fees due to their underwriters are reduced. Maybe cashback should only be offered on new money not old money. and then it could be more generous at 0.75% or 1%. Old money/new money restrictions on cashback offers probably don't achieve the desired effect. They alienate old money investors, and they're often circumventable -- such as by bringing in 'new' money first and then selling old parts and withdrawing funds later so as to be prepared for the next 'new' money cashback offer. Adding more Ts&Cs to the offer just complicates things and puts off more potential investors. PS. Must learn to type faster, as others have said it first! Well said Mike. Not forgetting that we also used to regularly compliment savingstream on their KISS interface and procedures.
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Investor
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Post by Investor on Aug 25, 2014 20:53:41 GMT
Paid monthly. Most property loans also have an "upfront" interest payment option where all interest is paid in advance at drawdown. Sold loan part interest is paid at the end of the loan term. Thanks. I Have a few upfront interest loans. What date is interest paid on monthly loans? 31st? If memory serves it is the last day of the month
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Investor
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Post by Investor on Aug 25, 2014 18:28:16 GMT
When is interest on property loans paid? Is this the same for sold loan parts? Paid monthly. Most property loans also have an "upfront" interest payment option where all interest is paid in advance at drawdown. Sold loan part interest is paid at the end of the loan term.
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Investor
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Post by Investor on Aug 22, 2014 8:56:58 GMT
Yep. Zopa used to have a good forum (now hidden) and back in the early days a more fun lending system. The whole safeguard thing has been a big step back .. Especially the way they incrementally killed off the old system. They are now, IMO, Santander lite .. Better rate but, no fscs backstop. They do have a better early sellout option, which is probably working against them. Even their name is now a liability, if you look up where it came from. Not at all. Simply change it to Zone of Pre-set Agreement
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Investor
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Post by Investor on Aug 21, 2014 12:56:39 GMT
Thanks for the response guys. I guess though the clear advantage of RS over Zopa is that it doesn't charge a lender fee, so you don't have to pay tax on that. Ill be moving all my funds from Zopa to RS unless someone tells me Im wrong! Think you might have a long wait before someone tells you that. General consensus of opinion on here shows a movement from Zopa to RS
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Investor
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Post by Investor on Aug 21, 2014 10:37:28 GMT
Always start with a nice evocative thread title I have now completed my ZP to RS migration and found an unexpected by-product. Having been with ZP for some time, a number of my loans pre-date the 'Safeguard' offer and are therefore generally at a significantly higher rate (7%-13.5%). I have now rapid returned every possible loan, taken the 1% hit on all these and this has left me with a five figure sum which has now been reinvested in my RS account (well obviously a few boaty loans got serviced too). Anticipation was that some dregs would be left in ZP as they do not allow any loans through rapid return if they have ever missed a payment. I assume Zopa believes these people to be so incapable of managing their finances that they are too high risk to pass over to an alternate lender. So now all I have is a few dozen loans left which give me an excellent blended rate of 7.4% (6.4% after ongoing admin fee) When I checked, the vast majority (screen shot attached) of my retained loans had made 1 failed payment, normally within the first couple of months a few years ago. All these payments had been caught up within a day or two of the failed payment. So now my new position is that my Zopa account is giving me a higher rate of return than my RS account. Interesting that the only way that a lender can get Zopa rates to exceed RS rates is by leaving.
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Investor
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Post by Investor on Aug 19, 2014 10:24:30 GMT
The Property Bridging deal is with legals at the moment and we hope to go live in next 7 days. Once completed the boat loan will be repaid. savingstream. Is this PBL currently listed in the pipeline loans, or will this be an additional loan? If in pipeline could you let the forum know which one
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Post by Investor on Aug 18, 2014 21:55:30 GMT
Agree Spockie. We have asked savingstream to sort out these 'orphaned' amounts to ensure the last part of a loan on SM is taken in full. I still own a 1p loan from clearing up last time. No interest paid on that one yet!
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Investor
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Post by Investor on Aug 18, 2014 12:38:25 GMT
For reaching the 1000 lenders achievement.
Any guesses for 2000?
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Investor
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Post by Investor on Aug 15, 2014 18:07:04 GMT
This is the chat board, if you want on-topic, look elsewhere. If I were you I'd ignore the whole chat board. To answer the OP, minimum wage makes as much sense (or not) as minimum/maximum bid rates on funding circle. Tax credits to get people to a living wage level - yeah maybe, although 'living' may not cover everything you could aspire to. GSV, just for your info this thread was created in the REBS thread hence the reason Jack 'politely' asked for it to be moved. The mods have since moved it correctly here to the Chat area which seems to be a very suitable place for it.
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Investor
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Post by Investor on Aug 11, 2014 20:08:20 GMT
Little bit about them in the MarketInvoice piece in the Other p2p sites. Worth a read
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Post by Investor on Aug 10, 2014 10:19:52 GMT
Q1 Yes, about 38k I reckon Q2 How much will we see of the loan on the SM following drawdown. Here's hoping SS is the land of investors not flippers. Well, it's supposedly over at a smidge over £30K left, but the loan doesn't actually say so yet, so maybe there's still chance for the last few.......... But there are two more in the pipeline at stage 4 now, so latecomers might not miss out. Interesting that although cash back closed at 30k, the remainder has still flown out with only 2.5k left now. Even one 10k purchase went through today. Bodes well with the 4 in the pipeline, can't wait to see if savingstream offer different cash-back percentages on these based on the loan value to try to fill the higher loan value ones.
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Investor
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Post by Investor on Aug 8, 2014 14:48:03 GMT
So, the question is, will there be any of the loan left unfilled by the 5pm cashback cut off? Less than £50K left with just over 2 and a half hours to go. Q1 Yes, about 38k I reckon Q2 How much will we see of the loan on the SM following drawdown. Here's hoping SS is the land of investors not flippers.
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Investor
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Post by Investor on Aug 7, 2014 13:27:55 GMT
Less than 6% for 5 years isn’t a good investment strategy in my book irrespective of the BoE saying the new “norm” is 3%. Better to settle for higher rates on AC or SS for the next year or so and review your tactics in light of the election result, whether the “recovery” is for real, the state of the housing market, Ukraine, the Middle East etc., etc.
It's all about risk. 3.0% is just about available in an FSCS protected account 4.5 to 6.0% from higher risk equity income/bond products 5.0 to 6.0% from Zopa & Ratesetter Now if you have sleepless nights worrying about not getting your money back you should stop here. I have settled on All of the above, but will be pulling out of Saving Stream (too much property) and Funding Secure (Too few loans). Similarly Funding Circle is becoming over propertied and very inept (too few staff?), also incompetent in dealing with late payments, so my modest investment will not be topped up. Assetz looks fine, but out of my league, and I do not trust property loans. Next stop will be £15k in an RS ISA once the red tape machine has created a thousand pages of nonsensically restrictive rules. So the big question now is whether the red tape will allow us to 'transfer in' from an existing N/(ISA) into a p2x wrapped ISA. If you started your ISA nice and early as some of us did and have used full allowance since the £3k launch in 1999, you would now have 71k + 14 years compounded interest to invest in a new p2x ISA wrapped vehicle. Not sure any of the other platforms can compete with risk/reward for a 6.x% tax free savings plan, especially for those who have a high rate patient/leech relationship with the jolly men from HMRC. Of course that said when (if) the wider savings community become aware of this we could see a very substantial capital load going into some of the p2x platforms as ISA's begin to be transferred, this will obviously have an effect on rates on the platforms, unless the High Street Banks start to provide favourable NISA rates. So to answer the question "How low will it go" in the 5yr market my prediction is an annual average of 5.0%, dipping down to 2% on the 6th April each year.
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