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Post by goldservice on Jul 21, 2014 6:09:47 GMT
If I request partial withdrawal of funds through the Sellout option, which loans will RS sell? I would prefer RS to sell the loans which have the lowest interest rate but can see no way of ensuring this.
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kermie
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Post by kermie on Jul 21, 2014 18:39:20 GMT
I cannot say for certain - but I certainly get the impression that lower-rate loans are the ones sold out first. My weighted average rate went up by 0.2% after I sold out a fair chunk.
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pikestaff
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Post by pikestaff on Jul 21, 2014 20:06:55 GMT
I seem to recall reading that it's first in, first out (which minimises penalties). Unfortunately I can't find the reference now.
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Post by westonkevRS on Jul 22, 2014 8:06:48 GMT
pikestaff is right, most recent loans sold. In theory minimise the differential in rate between the older lender and new lender, therefore minimising fees.
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spiral
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Post by spiral on Jul 22, 2014 8:29:04 GMT
Then its last in first out not first in first out!
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Post by goldservice on Jul 22, 2014 9:11:27 GMT
pikestaff is right, most recent loans sold. In theory minimise the differential in rate between the older lender and new lender, therefore minimising fees. Hmmm ... I thought that from 14 April 2014 there were no fees for lenders; and there are no fees for withdrawals. When I ask (Withdraw/Liquidate/Sellout) for the calculation for withdrawing £1,000, I'm told that there will be fees of £2.50; for £2,000 the fees will be £5.00; and for £10k the fees will be £25. So the loans being sold must be pre-14 April (the date after which loan contracts involved no fees for lenders.). I have lent over £5,000 since that date, so it can't be the most recent loans being sold. Even more confusing: if I increase the amount to be liquidated to well over what my amount lent was at 14 April, the overall fees (which should be zero after that date), should decrease but they actually increase very significantly. So whether it's LIFO or FIFO, I can't understand the fees being charged.
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pikestaff
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Post by pikestaff on Jul 22, 2014 16:44:22 GMT
I'm now well confused. Can anyone find a link to where fees/penalties are set out? I'm sure it used to be there somewhere...
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Post by oldatheist on Jul 22, 2014 17:21:19 GMT
The sell out process can be found here
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Post by goldservice on Jul 22, 2014 19:18:54 GMT
The sell out process can be found here
Thanks. That answers my original question - it's LIFO - the most recent loans are sold first.
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