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Post by overthehill on Jul 28, 2020 17:27:29 GMT
Despite the lender fee of 0.9% pa, I still seem to be getting very close to the target capped rate every month for GBBA 2.
Is this being seen across all the products ? I'm not sure if this is intentional, arbitrary or loan book dependent. The lender fee appears to be getting offset by any available surplus borrower interest in an attempt to maintain the target capped rate. Is this what is happening, I've no idea?
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dead-money
Rocket to the Moon
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Post by dead-money on Jul 28, 2020 19:26:51 GMT
The lender fee is only directly deducted from Manual Lending Accounts. (It is calculated at month end and then deducted from the first incoming interest payments received in the subsequent month)
For Access accounts and closed black box accounts, it's reflected in the reduced target, variable, definitely not guaranteed, 'we'll pay it if we can', interest rate.
NB there is no lender fee applied to loans in default or recovery, which is the majority of the stinky stuff left in PSA & GBBA !
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Post by overthehill on Jul 29, 2020 19:29:22 GMT
The target rate for my GBBA 2 a/c hasn't changed though and is still 6.25% and this is what I've been receiving the past few months according to my dashboard, I haven't manually added the interest up. I'm not going to raise a complaint!
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dead-money
Rocket to the Moon
Posts: 746
Likes: 654
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Post by dead-money on Jul 29, 2020 21:38:50 GMT
Do you have many holdings left in GBBA2? How many are loans which are still performing rather than suspended or deliquent?
Suspended & defaulted loans aren't liable for the lender fee and all are paying high rates of interest to AC, (assuming they are still making interest payments),
otherwise default interest is building up and AC is covering the account interest payouts from the 'magic money tree'...
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