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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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sydb
Member of DD Central
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Post by sydb on Jan 12, 2019 11:31:28 GMT
Each to his own, but personally I think the current system works well. I doubt that there are many lenders that want out but aren't willing to suffer the extra 0.5% fee on the few loans that they've had at the recent 6.5% rate. So, I doubt that it is contributing to the lack of available loans to any significant degree. If I'm wrong, it would be interesting to hear from anyone who is wanting out, but is unwilling to do so because of this fee. I am a lender wanting early access some of my investment. Although I get the impression I can no longer access the loan information for that comprising the withdrawal pending amount (pending for about a week now), I believe they were 6.0% loans. Equiv projected current rate is 6.5%. Total fee being charged is about 1.3% (includes the 0.6% fee). LW have changed the market price and now I have to pay more to sell my 6.0% loans. I invested in a lump sum then the rate went up. The more the rate is increased by LW, the more you pay to withdraw early. I did not understand this at the time I invested. Although penalties were mentioned in addition to a 0.6% fee, no example was given to show the effect. May I suggest LW puts some examples in place in their main literature in the 'how do I withdraw' section to clarify the situation to future investors (apologies if this is already there and I missed it)?
Please don't take this post as a whinge. It is simply a wish to educate others who did not understand the penalties of selling early, as I did not.
When the rate falls, and lenders want to sell higher rated loans early, do they get a rebate in a similar manner? So if a seller were to sell 6.5% loans when the market price had been lowered to 6.0%, does the seller effectively have no charge to sell (the 0.6% loan fee is effectively almost cancelled out by the rate difference)?
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Ukmikk
Member of DD Central
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Post by Ukmikk on Jan 12, 2019 15:42:24 GMT
Agreed sydb, I didn't understand the full potential costs of selling either although I haven't yet been in this position. I do also wonder what would happen if the market rate was below the rate of loans being sold, I assume the purchaser would have to pay a premium to the seller. ( Matthew ?) |
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Post by nesako on Jan 12, 2019 16:20:40 GMT
Agreed sydb , I didn't understand the full potential costs of selling either although I haven't yet been in this position. I do also wonder what would happen if the market rate was below the rate of loans being sold, I assume the purchaser would have to pay a premium to the seller. ( Matthew ?) This has been answered before. The purchaser would simply get your higher % loans without paying any premiums (i.e. a nice bonus for whoever gets it)
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Post by Matthew on Jan 14, 2019 9:59:31 GMT
Each to his own, but personally I think the current system works well. I doubt that there are many lenders that want out but aren't willing to suffer the extra 0.5% fee on the few loans that they've had at the recent 6.5% rate. So, I doubt that it is contributing to the lack of available loans to any significant degree. If I'm wrong, it would be interesting to hear from anyone who is wanting out, but is unwilling to do so because of this fee. I am a lender wanting early access some of my investment. Although I get the impression I can no longer access the loan information for that comprising the withdrawal pending amount (pending for about a week now), I believe they were 6.0% loans. Equiv projected current rate is 6.5%. Total fee being charged is about 1.3% (includes the 0.6% fee). LW have changed the market price and now I have to pay more to sell my 6.0% loans. I invested in a lump sum then the rate went up. The more the rate is increased by LW, the more you pay to withdraw early. I did not understand this at the time I invested. Although penalties were mentioned in addition to a 0.6% fee, no example was given to show the effect. May I suggest LW puts some examples in place in their main literature in the 'how do I withdraw' section to clarify the situation to future investors (apologies if this is already there and I missed it)?
Please don't take this post as a whinge. It is simply a wish to educate others who did not understand the penalties of selling early, as I did not.
When the rate falls, and lenders want to sell higher rated loans early, do they get a rebate in a similar manner? So if a seller were to sell 6.5% loans when the market price had been lowered to 6.0%, does the seller effectively have no charge to sell (the 0.6% loan fee is effectively almost cancelled out by the rate difference)?
Hi sydbThanks for your feedback - I fully understand your points above and think that some worked examples would help a great deal. We're actually also looking at a more flexible product with no exit fees - more on that to follow. One thing did catch my attention though - you mention that you've been waiting for a withdrawal for about a week. Please would you elaborate on this? Have you completed a Quick Withdraw and you're now waiting for the funds to arrive, or are you saying that your Quick Withdraw request is still pending (it should never take this long)? If it's the latter, please DM me your customer number and I can raise internally. Many thanks
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Post by gravitykillz on Jan 14, 2019 11:29:05 GMT
Oh how exciting a rolling market coming to lending works in 2019!! If the interest rate is 5% or above i can invest a significant sum.
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sydb
Member of DD Central
Posts: 345
Likes: 316
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Post by sydb on Jan 14, 2019 12:07:38 GMT
One thing did catch my attention though - you mention that you've been waiting for a withdrawal for about a week. Please would you elaborate on this? Have you completed a Quick Withdraw and you're now waiting for the funds to arrive, or are you saying that your Quick Withdraw request is still pending (it should never take this long)? If it's the latter, please DM me your customer number and I can raise internally. On my Classic dashboard, in the 'Withdrawn' box, my 'Withdrawal pending:' amount is shown and has been since my request on 4th Jan. Under 'account summary', various 'Chunk reassigned' took place on 4th Jan. There is nothing in my wallet yet. Is this what you are saying should not be the case?
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Post by Matthew on Jan 14, 2019 12:57:48 GMT
Yes this sounds strange to me, especially if the reassignments happened as expected. There would never normally be a delay. It's difficult to say without looking into your account though, so it's best to contact customer service (cs@lendingworks.co.uk) and we can sort that out for you.
Many thanks
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sydb
Member of DD Central
Posts: 345
Likes: 316
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Post by sydb on Jan 24, 2019 0:16:15 GMT
Account verification was required, but I had not been notified of such. Resolved now.
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