amwinv
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Post by amwinv on Jul 12, 2018 11:49:05 GMT
I've just been allocated a 6 month A+ loan paying only 1.9% (!!!!!!)
For the risk of my £20 allocation, my best case scenario is I earn about 19p interest. Actually, it's amortising so not even that little!
Is this staggeringly low rate normal now? I've never had anything under about 5% on FC before.
A very quick Google search with my limited knowledge of interpreting Companies House records (and their non existent web presence anywhere else) doesn't fill me with joy about this one, so I don't understand what criteria is used to justify this. Has anyone worked out how to sell specific loans? Or can I demand FC remove a new purchase that I have severe worries about? Or do I just have to suck it up and wait for it to hopefully not default?
Any advice would be super appreciated!
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rogerthat
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Post by rogerthat on Jul 12, 2018 12:19:41 GMT
I've just been allocated a 6 month A+ loan paying only 1.9% (!!!!!!) For the risk of my £20 allocation, my best case scenario is I earn about 19p interest. Actually, it's amortising so not even that little! Is this staggeringly low rate normal now? I've never had anything under about 5% on FC before. A very quick Google search with my limited knowledge of interpreting Companies House records (and their non existent web presence anywhere else) doesn't fill me with joy about this one, so I don't understand what criteria is used to justify this. Has anyone worked out how to sell specific loans? Or can I demand FC remove a new purchase that I have severe worries about? Or do I just have to suck it up and wait for it to hopefully not default? Any advice would be super appreciated! Don't spend it all at once ? 
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r00lish67
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Post by r00lish67 on Jul 12, 2018 12:52:09 GMT
I've just been allocated a 6 month A+ loan paying only 1.9% (!!!!!!) For the risk of my £20 allocation, my best case scenario is I earn about 19p interest. Actually, it's amortising so not even that little! Is this staggeringly low rate normal now? I've never had anything under about 5% on FC before. A very quick Google search with my limited knowledge of interpreting Companies House records (and their non existent web presence anywhere else) doesn't fill me with joy about this one, so I don't understand what criteria is used to justify this. Has anyone worked out how to sell specific loans? Or can I demand FC remove a new purchase that I have severe worries about? Or do I just have to suck it up and wait for it to hopefully not default? Any advice would be super appreciated! I think the system chooses the loan parts that are closest to their next repayment date (someone correct me if I'm wrong), so you could try selling £20 on the day before this one's next repayment. Is that 1.9% before or after FC's 1% servicing fee btw? Is it actually 0.9% before tax?
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Stonk
Stonking
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Post by Stonk on Jul 12, 2018 14:06:08 GMT
I think the system chooses the loan parts that are closest to their next repayment date (someone correct me if I'm wrong), so you could try selling £20 on the day before this one's next repayment. This cannot be true, sorry!
My next repayments are on the 16th, 19th, 24th, 27th, 29th, 1st and 4th, none of which have a round £20 principal remaining (all my freshly-minted loans are clustered around the 9th). On the Sell page, for almost any amount I enter, FC offers to sell a round £20-multiple. It cannot possibly be the loans nearest to repayment date. There are occasional amounts I can chose which result in FC offering a non-round sale, which gives me insight into which loans it has chosen, but even then it's not the nearest repayers.
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Stonk
Stonking
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Post by Stonk on Jul 12, 2018 14:31:33 GMT
Haha, I received a part of it too. My £20 piece will repay as follows: Date
| Principal | Interest | Fee | 11 Aug 18
| £3.32 | £0.03 | £0.02 | 11 Sep 18
| £3.32 | £0.02 | £0.02 | 11 Oct 18
| £3.33
| £0.02 | £0.01 | 11 Nov 18
| £3.34 | £0.02 | £0.01 | 11 Dec 18
| £3.34 | £0.01 | £0.00 | 11 Jan 19
| £3.35 | £0.01 | £0.00 |
That's a total of 11p interest and 6p fees -- for a profit of 5p.
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rogerthat
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Post by rogerthat on Jul 12, 2018 14:40:49 GMT
Haha, I received a part of it too. My £20 piece will repay as follows: Date
| Principal | Interest | Fee | 11 Aug 18
| £3.32 | £0.03 | £0.02 | 11 Sep 18
| £3.32 | £0.02 | £0.02 | 11 Oct 18
| £3.33
| £0.02 | £0.01 | 11 Nov 18
| £3.34 | £0.02 | £0.01 | 11 Dec 18
| £3.34 | £0.01 | £0.00 | 11 Jan 19
| £3.35 | £0.01 | £0.00 |
That's a total of 11p interest and 6p fees -- for a profit of 5p. Less tax ?
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benaj
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Post by benaj on Jul 12, 2018 14:45:30 GMT
 I notice FC does advertise unsecured business loans from 1.9% - Unsecured loans £5k – £500k - Borrow over 6 mths – 5 yrs - Rates from 1.9% per annum - Get a decision typically in 24 hrs - No early repayment fees We probably have to wait and see if this reduce the default rate in FC loanbook.
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r00lish67
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Post by r00lish67 on Jul 12, 2018 15:23:45 GMT
I think the system chooses the loan parts that are closest to their next repayment date (someone correct me if I'm wrong), so you could try selling £20 on the day before this one's next repayment. This cannot be true, sorry!
My next repayments are on the 16th, 19th, 24th, 27th, 29th, 1st and 4th, none of which have a round £20 principal remaining (all my freshly-minted loans are clustered around the 9th). On the Sell page, for almost any amount I enter, FC offers to sell a round £20-multiple. It cannot possibly be the loans nearest to repayment date. There are occasional amounts I can chose which result in FC offering a non-round sale, which gives me insight into which loans it has chosen, but even then it's not the nearest repayers.
Hmmm.. I use this method to sell off my much-loved and very well-used property parts with 2 repayments and a day left, and it's always worked ok for me. But I'm not sure whether the number of repayments remaining makes any difference I must admit.
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Stonk
Stonking
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Post by Stonk on Jul 12, 2018 15:35:29 GMT
Haha, I received a part of it too. My £20 piece will repay as follows: Date
| Principal | Interest | Fee | 11 Aug 18
| £3.32 | £0.03 | £0.02 | 11 Sep 18
| £3.32 | £0.02 | £0.02 | 11 Oct 18
| £3.33
| £0.02 | £0.01 | 11 Nov 18
| £3.34 | £0.02 | £0.01 | 11 Dec 18
| £3.34 | £0.01 | £0.00 | 11 Jan 19
| £3.35 | £0.01 | £0.00 |
That's a total of 11p interest and 6p fees -- for a profit of 5p. Less tax ? Yes, there's tax to pay on the 5p (or is it the 11p?).
If I'm lucky, the 5p extra will not actually affect the income declared on my tax return, because incomes are rounded down to the pound below. But if that 5p happens to push my income figure up by a pound, then I'll have to pay 40p tax on it.
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rogerthat
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Post by rogerthat on Jul 12, 2018 15:50:31 GMT
Yes, there's tax to pay on the 5p (or is it the 11p?).
If I'm lucky, the 5p extra will not actually affect the income declared on my tax return, because incomes are rounded down to the pound below. But if that 5p happens to push my income figure up by a pound, then I'll have to pay 40p tax on it.
Its the 11p...and if you slip into the 40% tax bracket (if you are not already there) because of one single loan on Funding Circle, then I suggest you get an accountant or else it could turn out to be the most expensive 11p (less tax ) ever
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benaj
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Post by benaj on Jul 13, 2018 7:37:40 GMT
This cannot be true, sorry!
My next repayments are on the 16th, 19th, 24th, 27th, 29th, 1st and 4th, none of which have a round £20 principal remaining (all my freshly-minted loans are clustered around the 9th). On the Sell page, for almost any amount I enter, FC offers to sell a round £20-multiple. It cannot possibly be the loans nearest to repayment date. There are occasional amounts I can chose which result in FC offering a non-round sale, which gives me insight into which loans it has chosen, but even then it's not the nearest repayers.
Hmmm.. I use this method to sell off my much-loved and very well-used property parts with 2 repayments and a day left, and it's always worked ok for me. But I'm not sure whether the number of repayments remaining makes any difference I must admit. Good for you r00lish67, I can’t pick and choose the sell the ones I have
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blender
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Post by blender on Jul 13, 2018 8:08:54 GMT
I just did not believe that FC would lend our cash unsecured at 0.9% net of servicing fees, and would make more out of it that we do for no risk. Now I am just stunned. They must be desperate to puff up the loan book at any cost, to us. Clearly what FC do with my cash is just none of my business and I have to take what I am given. I remember a thing called peer to peer lending - it lives on elsewhere.
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amwinv
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Post by amwinv on Jul 13, 2018 9:44:04 GMT
I'm sure someone said yesterday to contact them and check as it may be a mistake, but that post seems to be gone now?!?!
Anyway, I have emailed them. So let's see what they say.
(I also pointed out that if the rate is correct, I want it removing from my account immediately. This could be interesting.)
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amwinv
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Post by amwinv on Jul 13, 2018 10:00:49 GMT
Aaaaaaand received standard patronising reply, explaining how FC works.
*Flexes fingers for long angry email back*
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blender
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Post by blender on Jul 13, 2018 13:10:31 GMT
I'm sure someone said yesterday to contact them and check as it may be a mistake, but that post seems to be gone now?!?! Anyway, I have emailed them. So let's see what they say. (I also pointed out that if the rate is correct, I want it removing from my account immediately. This could be interesting.) I said it could be a mistake, but then read benaj's post confirming 1.9% loans. My post was misleading and was removed, my account may follow.
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I notice FC does advertise unsecured business loans from 1.9%