how long to sell loans

Hi benaj



Accrued interest in the Flexible product will be paid to the investor(s) purchasing your loan chunks on the next loan repayment. We may look at changing this in the future e.g. the incoming investor buys the chunks at a premium to account for this, but it's not currently in the roadmap.



Accrued interest in the Growth product works slightly differently (although the same as the legacy products). The fee for selling loans is 0.5% of the amount sold, plus a discount to reflect any projected interest shortfall for the remainder of the loan terms, where the interest rates on your chunks are lower than the current market rates (as advertised on our website at the time). This is to prevent investors losing out by picking up loan chunks below the advertised rates. Where an interest shortfall is payable (to the incoming investor(s)), this is reduced to reflect any accrued interest at the point of sale. The reduction is capped at the amount of any interest shortfall.



Brief example:



Sell £1,000 of loans

Pay 0.5% fee = £5.00

Discount of £2.50 to reflect interest shortfall (say the rate on your loans is 6.0% versus 6.5% current Growth rate)

Accrued interest of £2.00

Total fee payable = £5.00 + £2.50 - £2.00 = £5.50



If accrued interest was instead £3.00:



Total fee payable = £5.00 + £2.50 - £2.50 (capped at the interest shortfall value) = £5.00



Hope this helps, but any questions please let me know.