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Post by wilberforce on Oct 1, 2014 18:49:34 GMT
Would someone who has been on this platform longer than me be good enough to explain the relationship between accrued interest as shown alongside each of my loan parts and the interest shown on my statement. In other words, when does one morph in to the other.
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bigfoot12
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Post by bigfoot12 on Oct 1, 2014 19:07:30 GMT
Sort of never, sort of at the end of the month. (unit payment month nor calendar month)
The accrued interest shown alongside your loan part is that interest to date since the last payment, which will become payable to you at the next payment date, but only in relation to the units you still hold. If you sell no units it will increase each day until the payment day when it goes back to zero and your account will then show the payment for the full month. If you have sold some part way through the month the interest on those units will be paid to you at the same time.
Imagine a £100 unit @ 12%, the accrued will go up by about 3p per day (can't remember what happens at the weekend - perhaps 9p on a Monday). On the day before the payment day the accrued will be roughly 97p. The day after it will be 0p, but you should see £1 on your statement.
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Post by wilberforce on Oct 1, 2014 19:38:55 GMT
Does each loan have a different payment date and if so does it relate to drawdown or investment date? I ask because on TC all interest payments are made on the same day each month (in theory)and it is therefor easy to check who has or has not paid.
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ianb
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Post by ianb on Oct 1, 2014 19:44:06 GMT
yup. You can see the repayment dates for each loan on a specific tab for that loan, so that they will be spread throughout the month. Exception to this is bullet loans like W**x*am which only pay interest at loan maturity. These ones accrue month after month.
personally I keep a spreadsheet with a row per loan, including the repayment day and other stuff like my target amount.
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mikes1531
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Post by mikes1531 on Oct 1, 2014 20:42:54 GMT
Does each loan have a different payment date and if so does it relate to drawdown or investment date? If a loan makes monthly payments then it will pay on the same day of the month that the loan drew down. i.e. if a loan is drawn down on the 12th of the month then the repayments will be due on the 12th of each following month. As ianb said, you can see this on the Repayments tab of each loan.
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Post by gingergent on Oct 2, 2014 4:55:23 GMT
The accrued interest shown alongside your loan part is that interest to date since the last payment, which will become payable to you at the next payment date, but only in relation to the units you still hold. ... If you have sold some part way through the month the interest on those units will be paid to you at the same time. I thought with AC accrued interest wasn't paid at time of sale; that it was retained by the seller and paid when the next loan payment came in? I'm not sure if the website yet lets you view accrued interest on sold loan parts.
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Post by chris on Oct 2, 2014 6:03:54 GMT
The accrued interest shown alongside your loan part is that interest to date since the last payment, which will become payable to you at the next payment date, but only in relation to the units you still hold. ... If you have sold some part way through the month the interest on those units will be paid to you at the same time. I thought with AC accrued interest wasn't paid at time of sale; that it was retained by the seller and paid when the next loan payment came in? I'm not sure if the website yet lets you view accrued interest on sold loan parts. It isn't paid at point of sale. All interest is settled when received or recovered from the borrower.
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bigfoot12
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Post by bigfoot12 on Oct 2, 2014 7:44:48 GMT
I thought with AC accrued interest wasn't paid at time of sale; that it was retained by the seller and paid when the next loan payment came in? I'm not sure if the website yet lets you view accrued interest on sold loan parts. It isn't paid at point of sale. All interest is settled when received or recovered from the borrower. Sorry, that is what I was trying to say. My point was that the accrued interest you see on the screen relates to only those units you still hold. You will be credited with additional interest on any sold units at the usual monthly point.
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mikeb
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Post by mikeb on Oct 2, 2014 17:10:35 GMT
Imagine a £100 unit @ 12%, the accrued will go up by about 3p per day (can't remember what happens at the weekend - perhaps 9p on a Monday). Weekends are not special. It still accrues per day, just like in the week.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 3, 2014 0:31:19 GMT
Chris, the accrued interest doesn't look right for the extended loan 132 that I hold. The amount of accrued interest has dropped significantly since I last looked about a week ago.
For loan units bought 20th July, I have accrued interest of £1.45 which equates to 7% p.a. not 18%p.a.
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Post by chris on Oct 3, 2014 7:05:37 GMT
Chris, the accrued interest doesn't look right for the extended loan 132 that I hold. The amount of accrued interest has dropped significantly since I last looked about a week ago. For loan units bought 20th July, I have accrued interest of £1.45 which equates to 7% p.a. not 18%p.a. Should be resolved. There was a bug with historic loans where a loan drawdown had been back dated to before the loan unit was created. This has been corrected and will be reflected on the site in a couple of minutes.
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mikeb
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Post by mikeb on Oct 3, 2014 16:46:20 GMT
chris -- I can tell someone's been doing stuff behind the scenes today  So Finest Unmentionables Ltd seems to have fixed the accrued interest vs. partial recovery situation (after accrued interest dropped by 400/700ths a while back). Thumbs up! Ipswich has done something wacky. The accrued interest has slightly more than doubled overnight. Can you check what's up there? A few accrued interests went backward a few pence, rounding errors coming out I guess? (Where there's multiple parts in same loan) Otherwise .... everything that paid interest today has paid up correctly, but the accrued interest is still there. For me, LTL Mortgage 1, 2 and 6, Central London Bridge Loan, Manchester Commercial Property and Spondon all affected. Presumably this will be affecting everything?
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Post by chris on Oct 3, 2014 16:49:22 GMT
chris -- I can tell someone's been doing stuff behind the scenes today So Finest Unmentionables Ltd seems to have fixed the accrued interest vs. partial recovery situation (after accrued interest dropped by 400/700ths a while back). Thumbs up! Ipswich has done something wacky. The accrued interest has slightly more than doubled overnight. Can you check what's up there? A few accrued interests went backward a few pence, rounding errors coming out I guess? (Where there's multiple parts in same loan) Otherwise .... everything that paid interest today has paid up correctly, but the accrued interest is still there. For me, LTL Mortgage 1, 2 and 6, Central London Bridge Loan, Manchester Commercial Property and Spondon all affected. Presumably this will be affecting everything? Yeah there's a bug at the moment preventing the system from triggering the recalculation of accrued interest after a payment has been made (as the system now supports accrued interest across multiple due payments it's not as simple as setting it to zero). That's easily resolvable but was lower priority as it wouldn't actually affect a pay out and will self correct with each nightly update to the DB. Should have it fixed this evening though. Will check with Ipswich, could be either the conversion to the new model we awry or someone's done something silly when updating the model to reflect the current situation with that loan.
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mikeb
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Post by mikeb on Oct 3, 2014 17:08:32 GMT
chris Leicester care home -- I'm seeing double on the repayments tab. Do they really have to pay 2 interest payments every month, with the capital paid back twice at redemption? If so, I'm in (Any others suffering from this?)
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Post by chris on Oct 3, 2014 17:27:42 GMT
chris Leicester care home -- I'm seeing double on the repayments tab. Do they really have to pay 2 interest payments every month, with the capital paid back twice at redemption? If so, I'm in (Any others suffering from this?) I've double checked the actual repayment plan and that looks fine. So this is a display issue where a due date has yet to be set for each repayment. Will be fixed on Monday.
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