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Post by bobthebuilder on Jun 30, 2017 9:12:49 GMT
Sorry folks, but after months of sticking with market rate for reinvestments to avoid depressing the long-term rate of return I've had to conclude that their business model is so flawed (rates being able to move only downwards) that I'll take the cashback as soon as my year is up and withdraw. It makes no sense to wait up to 17 days to get matched on a one month contract so I'll aim for the best short-term return I can using the priority rate and then scarper. Maybe I'll reconsider reverting to market rate if borrowing picks up in a month's time, but I doubt it. I really can't see the point of GS running an expensive promotion to attract new investors if they're going to p**s them off so much that they leave at the earliest opportunity.
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Post by bobthebuilder on Jun 30, 2017 8:26:46 GMT
Collateral Rep This seems to have become an issue again. On this morning's bling renewals user D********p somehow managed to acquire loan parts in all of BB538, 539 and 540 and I do not see how that is humanly possible given how long the three loans were available in total. Could you investigate please?
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Post by bobthebuilder on Jun 12, 2017 21:38:36 GMT
is this account slowly emptying the other two 7% accounts. starting to look like another race to the bottom I doubt it. I think they introduced it to fill the gap for auto-investment range, I don't think property investments are eligible for GB and Green??? However, I'm not sure how successful this new account will be - investing in property loans at 5.5% is not worth the risk (even with PF 'safeguard') whilst there are plenty of property loans on the market paying twice as much. Property investments most definitely ARE eligible for the GBBA. In fact I would think that more of my GBBA positions are in property bridging or development loans than in anything else. I’ve been told by Customer Services at AC that the eligibility criteria for inclusion in the GBBA are: 1. Must have property security 2. Maximum LTV 75% 3. 8% minimum interest rate if LTV is less than 55%, or 9% minimum interest rate if LTV is in the range 55% - 75% 4. Exception is development loans where LTGDV is substituted for LTV. They cited #441 as an example. “Funds advanced Day 1 = £2.735million vs GDV of £6million, therefore the valuation ratio used by the mandate was 46%. As such, with a rate of 8% and a valuation ratio below 55%, the loan qualified for the account. When we get to the point, because further funds have been advanced, where the valuation ratio exceeds 55%, this loan will cease to qualify for the GBBA as the interest rate would need to be 9% or higher. This is unique to Development Loans because of the way the funds advanced change throughout the development period.” There’s also a target of allocating no more than 20% of your GBBA funds, including uninvested funds swept to the QAA, to a single loan. ---------------------------------------------------------------------------------------------------------------------------------------- On these criteria I can see no justification for the GBBA selling down my position in #391, and the fact that it has done so in my view lends considerable credibility to the conspiracy theory that GBBA lenders are seeing their loan diversification reduced and their average risk level increased by having their less risky loans transferred to the PSIA.
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Post by bobthebuilder on Jun 9, 2017 11:45:01 GMT
I had the same issue with the one 9.00 a.m. renewal I bid for, and queried it with Collateral. Their reply:
"We haven't noticed any issues with the platform this morning but we do occasionally notice on renewals with little rollover availability that there are a large number of investors trying to purchase the same loan parts. The system can only allocate loan parts to the investors that complete their transactions first and when there isn't sufficient availability left a pop up will show this.
Apologies for any inconvenience caused."
Doesn't really explain why the Transfer Funds pop-up box appeared though - I've never seen that before when a loan was fully filled.
It's an issue that seems only to have affected fully subscribed loans however, as I was successful in my bid for one of the 9.05 a.m. renewals.
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Post by bobthebuilder on Jun 1, 2017 15:22:50 GMT
Morning jfm , No it won't make any difference which bank you use as long as you use your Collateral reference (five digit or full ref) so we can identify the payments. Many thanks, Gordon If this is true, you might want to revisit para 10.3 of your new terms and conditions. "10.3. Before you can make a Lending Commitment you must have cleared funds in the Client Money Account. You can send funds to the Client Money Account by bank transfer only. All funds must be sent from your Nominated Account."
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MoneyThing (MT) in Administration
Renew All
May 24, 2017 11:58:34 GMT
Post by bobthebuilder on May 24, 2017 11:58:34 GMT
I agree with your concerns about the dual use of the Renew box. As things stand you can't differentiate between AE loans that are expected to repay within the next couple of months and those that are expected to be rolled over. Not good if you're happy to buy the latter but not the former. AE loans that are being rolled include the word 'stocking' in the description, the others are GALs (Yes, there are boy loans and Gal loans ) As an active reader of this forum,I know that. But there must be plenty of MT investors who don't.
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MoneyThing (MT) in Administration
Renew All
May 24, 2017 11:55:04 GMT
david42 likes this
Post by bobthebuilder on May 24, 2017 11:55:04 GMT
Just tick the box if you want to renew. Quick check ... click on the invested column to stick all the loans you have holdings in at the top ... go down the list checking anything with a box has a tick in it (or not if you dont want to renew) Thats how I ve always checked my investments renewals Useful Tip ...... BUT after clicking "Renew all" my holding in BPF705 ( Manchester Hall - 9th drawdown) is not showing a tick or a box.... whilst all my other loans have now got a tick to show they will Renew, including BPF697 (Manchester Hall - 8th drawdown). What's amiss MT ? Nothing's amiss. The 9th drawdown took place after the new T+Cs applied (24/3) (Cross-posted with Archie)
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MoneyThing (MT) in Administration
Renew All
May 24, 2017 10:06:42 GMT
Post by bobthebuilder on May 24, 2017 10:06:42 GMT
True, but read and agreed with the new Ts&Cs then I clicked the renew all button before realising the dual purpose and selected some small asset exchange type loans that I'd decided not to renew using the original meaning. It is my own fault I suppose but it caught me out. Easy enough to fix one by one. LW I agree with your concerns about the dual use of the Renew box. As things stand you can't differentiate between AE loans that are expected to repay within the next couple of months and those that are expected to be rolled over. Not good if you're happy to buy the latter but not the former.
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Post by bobthebuilder on May 19, 2017 7:29:52 GMT
Ha! That didn't take long. Barely half an hour since the loan filled, and already there's £26,500 available on the SM
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Post by bobthebuilder on May 18, 2017 15:44:23 GMT
Had a good time at the lender drinks last night, and the RS people are lovely. But how can they expect me not to withdraw my repayments with the rates on offer recently? Incidentally, it seems they are seriously considering reintroducing a representative to engage with this forum instead of merely lurking as they do at present.
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Post by bobthebuilder on Apr 27, 2017 2:41:22 GMT
No, the fees are charged only on the amount invested. There's no fee on amounts held as cash.
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Post by bobthebuilder on Apr 13, 2017 12:27:34 GMT
chris Just to be clear, I have given several notice instructions on the standard 30DAA which will expire before 11/5. When this money hits my cash account, will I be able to transfer it to the promotional 30DAA and earn the extra interest, or is that seen as gaming the system? Also, are notice instructions on the new promotional account treated on a FIFO basis? Suppose I deposit, say, £5000 today and another £5000 on the last day of the promotion. Each qualifies for interest at 4.75% for 90 days from the date of deposit. For the sake of simplicity let’s assume that the two deposits are exactly one month apart. If I give notice today on £5000, then if FIFO applies I earn one month’s interest at the higher rate on the first £5000 deposit and, assuming it is left untouched, three months’ interest on the second £5000 deposit – so a total of four months’ interest. If LIFO applies on the other hand, I’d get (virtually) no interest on the second deposit and three months’ interest on the first – a total of three months’ interest.
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Post by bobthebuilder on Apr 11, 2017 5:22:29 GMT
Raising the fees less than a year after I started, and having struggled to get my funds invested, full deployment of those funds being a very occasional rather than regular feature - I think I know where this is leading me. Good luck with deploying your £100K+ accounts, Stephen. Oh, and can you clarify on fees please. 1.5% p.a. on investment amounts up to £25,000 1.25% p.a. on investment amounts from £25,001 to £100,000 1.0% p.a. on all invested amounts over £100,000 Example: Does an account of £50K have fees of 1.5% for the first £25K + 1.25% on the second £25K, or is the 1.25% on the whole £50K? Similarly, does an account of £100,001 have fees of 1.5% on the first £25K + 1.25% on the next £75K, then 1% on the last £1? ... (Meaning basically that an account of £100K would be paying a composite fee of 1.3125%) or, is the 1% fee on the whole £100,001? Good question. I'd also like to know the answer to this! It's quite clear - the new fee structure is not a cliff edge, it's incremental. So regardless of how much you have invested you pay 1.5% on the first £25K, 1.25% on the next £75K and 1.0% on the marginal investment over £100K. That's why the new net target rate for £100K, as shown in the e-mail sent by BM, is 6.7% on £100K. Gross target rate 8.0% Fee on £25K = £25K x 1.5% = £375 Fee on £75K = £75K x 1.25% = £937.50 Total fees £1312.50 £1312.50/£100K = 1.3125% (say, 1.3%) Net target rate = 8.0% - 1.3% = 6.7% This means that there's no incentive to increase your investment beyond the £25K level. The trouble is that on your first £25K the fee affects your returns by much more than 1.5% because it can't be offset against interest. As a 40% taxpayer the so-called gross target rate of 8% for me is really 5.5% after the fee, not 6.5% as BM asserts [(8% x 60% - 1.5%)/60%], and I can get 7.0% on, for example, AC's GBBA and GEIA products with the backing of a provision fund. So apart from platform diversificaton I can't see what BM is offering me now. I don't know how fair a comparison it is, but it seemed to me that in assessing the risks of debt instruments, what BM is doing is not so very different from the manager of a corporate bond fund. I've checked out the management fees of a few of these funds, and they are nothing like 1.5%. What's more, their fees are taken before income is distributed, so it's more tax efficient. It's also worth bearing in mind that some of the platforms BM invests in themselves levy fees, and whilst these fees ARE tax deductible, in that they are taken before interest is credited to lender accounts at BM, it means that the total fees are in fact more than 1.5% - possibly even approaching those charged by active equity fund managers. I've yet to make a final decision on what to do with my BM investment, but I'm leaning heavily in the direction of thinking that it no longer represents decent value for money.
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Post by bobthebuilder on Apr 5, 2017 16:32:30 GMT
23:59. I do it regularly at this time!
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Post by bobthebuilder on Mar 31, 2017 16:06:10 GMT
Hmmm ... they seem to have realised their mistake. It's back to 3.75% now. Since I screen dumped the evidence showing that I was being offered 3.9%, I wonder if I can claim the extra? (Erm ... is that a flying ilmoro I see?)
(Crossed with Chris's post)
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