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Post by ladywhitenap on Apr 1, 2021 15:45:54 GMT
Possible early repayment but the proposal says 12 months minimum interest. No wonder there is not the merest morsel on the SM
LW
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Post by Ace on Apr 1, 2021 15:54:37 GMT
Possible early repayment but the proposal says 12 months minimum interest. No wonder there is not the merest morsel on the SM LW Guilty 🙄. Sorry, couldn't resist it.
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mw
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Post by mw on Apr 1, 2021 16:05:03 GMT
I've got a fair few bob in these loans.. Does that mean the rest of the months up to the first 12 months interest might be honoured?
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Post by Ace on Apr 1, 2021 16:15:42 GMT
I've got a fair few bob in these loans.. Does that mean the rest of the months up to the first 12 months interest might be honoured? Yes, it does.
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mw
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Post by mw on Apr 1, 2021 16:24:46 GMT
I've got a fair few bob in these loans.. Does that mean the rest of the months up to the first 12 months interest might be honoured? Yes, it does. That's a fair bit of interest to pay back!
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Post by Ace on Apr 1, 2021 16:30:03 GMT
That's a fair bit of interest to pay back! Indeed. 15% interest for a 2 month loan in the case of 155 (assuming it repays towards the end of the expected 4 weeks). Pretty good business for us. Presumably they've secured new funding at a much lower rate that makes it worthwhile for them.
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criston
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Post by criston on Apr 1, 2021 17:34:03 GMT
Piled into all these tranches for long term, but to get an average of over 10% in 4 weeks time will be very nice.
AF has already paid out on 137 for early redemption.
Over £2.2m will be looking for a home shortly.
142 further tranches could mop it up.
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Post by df on Apr 1, 2021 19:11:05 GMT
Piled into all these tranches for long term, but to get an average of over 10% in 4 weeks time will be very nice. AF has already paid out on 137 for early redemption. Over £2.2m will be looking for a home shortly. 142 further tranches could mop it up. I wonder if repayment day will match the bidding date for the next FPW?
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criston
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Post by criston on Apr 2, 2021 18:50:26 GMT
Is the residual 12 month minimum interest payment classed as interest or capital gain for tax purposes.
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nick
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Post by nick on Apr 2, 2021 18:52:11 GMT
Is the residual 12 month minimum interest payment classed as interest or capital gain for tax purposes. It should be classified as interest for tax purposes.
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Post by Badly Drawn Stickman on Apr 2, 2021 20:42:45 GMT
I understand how it is possible to sell & buy across your own accounts, but how does that work in this case, where, if the maximum sell price is 100% & there are already buyers set in place for 100%. It doesn't work. I was just coming back to correct my post. Had not read the limit at 100% till just now. I am lucky that mine will be tax free. Obviously invoking the 'Investors code of honor' is the route to take. Simply state the time and amount involved and ask the other investors to remove and then reset there investments afterwards.
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blender
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Post by blender on Apr 3, 2021 8:24:35 GMT
It doesn't work. I was just coming back to correct my post. Had not read the limit at 100% till just now. I am lucky that mine will be tax free. Obviously invoking the 'Investors code of honor' is the route to take. Simply state the time and amount involved and ask the other investors to remove and then reset there investments afterwards. An excellent notion. Perhaps you might give the code in full and we could have it placed on the ASMX website, and all swear to uphold it, especially liquidity providers? Transfers in the other direction, placing the loans which will are expected to incur a tax loss in the standard account, are easier because that can usually be done at a discount.
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Balder
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Post by Balder on Apr 3, 2021 8:28:41 GMT
I don't understand why a borrower would settle early if they have to pay 12 months interest anyway. If re-financing then they have 2 lots of interest for 12 months, unless the Ablrate fees are the tipping point for the borrower to be better off. I expect some sort of deal to be struck here.
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criston
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Post by criston on Apr 3, 2021 8:43:50 GMT
I don't understand why a borrower would settle early if they have to pay 12 months interest anyway. If re-financing then they have 2 lots of interest for 12 months, unless the Ablrate fees are the tipping point for the borrower to be better off. I expect some sort of deal to be struck here. They probably secured long term finance for the whole project. Could be huge, maybe £50m - £100m, to be drawn in stages as work progresses. Must be a good deal for them pay out around £230k to us. AF has been the backbone of Ablrate for some time & I hope it continues.
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blender
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Post by blender on Apr 3, 2021 9:22:17 GMT
I don't understand why a borrower would settle early if they have to pay 12 months interest anyway. If re-financing then they have 2 lots of interest for 12 months, unless the Ablrate fees are the tipping point for the borrower to be better off. I expect some sort of deal to be struck here. Ablrate don't have the authority to strike deals in these circumstances. Just to save the borrower some cash at the expense of lenders. The 12 month minimum is in the borrowing proposals, key terms. I guess that Ablrate will be losing some considerable monthly fee income in the next few months. No Easter Egg for Bob Cratchit.
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