aju
Member of DD Central
Posts: 3,500 
Likes: 924
|
Post by aju on Jan 24, 2019 0:14:07 GMT
It's not the interest rate that reduces on an amortizing loan. It's the amount lent that reduces. Every time there is a capital repayment the amount of interest earned reduces because you are lending less money. As soon as you receive a capital repayment, the original amount of the loan becomes irrelevant. You are no longer lending that amount. The interest rate (AER) stays the same. There is a potential cash drag if you don't reinvest but that's true of all repayments. I agree with all that you say, it's not the interest rate that reduces, its the actual return that reduces if you stop relending. So its the overall rate that I am flagging not the headline rate when running down an investment. Of course if you are moving the returned money to another product then that return may not be the same as the one on RS/Zopa etc. (I'm starting to wish i'd never mentioned it but I'm happy with how I view it as I'm working from returns not from headline interest rates - on RS its not as important as it is on non Safe guarded investments).
|
|
|
|
Post by fatbritabroad on Jan 26, 2019 17:01:46 GMT
Interesting. I've done things slightly differently by opening new ifisas every tax year and splitting my investment 1/4 ifisa and 3/4standard s and s isa. Keeps me from being greedy on the higher risk platforms like ablrate and I don't really want more than 5k initially on each platform
Currently use
Lending works 6.5% ifisa
Assetz capital 30 day account ifisa
Ablrate around 12% and well diversified among borrowers ifisa
Ratesetter 5.6% none isa
Bits in Kufflink to get the bonuses and assetz and lending works outside of isas.
Debating which platform to open my next account in April any thoughts? Considering Kufflink or possibly going for property crowd funding like british pearl
|
|
|
|
Post by britishpearl on Feb 1, 2019 14:09:02 GMT
Interesting. I've done things slightly differently by opening new ifisas every tax year and splitting my investment 1/4 ifisa and 3/4standard s and s isa. Keeps me from being greedy on the higher risk platforms like ablrate and I don't really want more than 5k initially on each platform Currently use Lending works 6.5% ifisa Assetz capital 30 day account ifisa Ablrate around 12% and well diversified among borrowers ifisa Ratesetter 5.6% none isa Bits in Kufflink to get the bonuses and assetz and lending works outside of isas. Debating which platform to open my next account in April any thoughts? Considering Kufflink or possibly going for property crowd funding like british pearl Dear fatbritabroad Thank you for considering using our platform. If you have any questions or want to speak to us directly on 0203 004 6252 please feel free to get in touch and we would be happy to assist you. Kind regards The British Pearl team.
|
|
