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Post by Ace on Apr 26, 2024 13:22:25 GMT
It's a real shame for us lenders that these older style loans are repaying early. The bulk of the profits on these were loaded towards the end of the loans (as the capital amortises the profit element remains fixed), so the XIRR will take a hit. Can't blame the borrowers, it makes perfect sense for them to pay as early as possible to avoid the bulk of the profit payments. My total investment in Q is sinking fast.
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trium
Member of DD Central
Posts: 384 
Likes: 304
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Post by trium on Apr 28, 2024 13:29:07 GMT
I've done my usual £300 in the plastic manufacturer following an early repayment on Friday but I wasn't paying much attention and I wasn't aware of the changes to schedules. Sadly,I think this will be my last Qardus investment
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Post by df on Apr 28, 2024 18:36:45 GMT
It's a real shame for us lenders that these older style loans are repaying early. The bulk of the profits on these were loaded towards the end of the loans (as the capital amortises the profit element remains fixed), so the XIRR will take a hit. Can't blame the borrowers, it makes perfect sense for them to pay as early as possible to avoid the bulk of the profit payments. My total investment in Q is sinking fast. My total in Q tend to stay roughly the same, no significant changes in the past year or so. I invest the same amount in every available loan (in case of multiple campaigns I only add up to my self-imposed maximum per borrower) and withdraw repayments several times a month. After these early repayments my XIRR went up by 0.11%.
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Post by Ace on Apr 28, 2024 21:46:04 GMT
It's a real shame for us lenders that these older style loans are repaying early. The bulk of the profits on these were loaded towards the end of the loans (as the capital amortises the profit element remains fixed), so the XIRR will take a hit. Can't blame the borrowers, it makes perfect sense for them to pay as early as possible to avoid the bulk of the profit payments. My total investment in Q is sinking fast. My total in Q tend to stay roughly the same, no significant changes in the past year or so. I invest the same amount in every available loan (in case of multiple campaigns I only add up to my self-imposed maximum per borrower) and withdraw repayments several times a month. After these early repayments my XIRR went up by 0.11%. Yes, the XIRR will generally rise when the older style loans make payments because they make the same profit payment that is based on a reducing outstanding balance each time. By not having to make the later payments the XIRR won't rise as much as it would have done if the loan had run to its full term. As an example, a loan that recently repaid early (after 12 months rather than 36), E*7 C*********r, has returned an XIRR of around 16.5%. Had it run to completion it would have returned an XIRR of over 25%. EDIT: corrected mistype in return figure.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
Posts: 1,055
Likes: 616
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Post by dave4 on Apr 30, 2024 16:56:02 GMT
Well I've had one........... E****ss M**s. What was your other one? S**** E*** Prop**** Just received the official q e mail notification for s.e.p . Fully repaid
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Post by df on Apr 30, 2024 17:21:54 GMT
Just received the official q e mail notification for s.e.p . Fully repaid At first I thought another two repaid earlier  , I've already withdrawn and received funds, strange that they send e-mails two days after repayment.
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firedog
Member of DD Central
Posts: 367
Likes: 461
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Post by firedog on Apr 30, 2024 17:48:25 GMT
Just received the official q e mail notification for s.e.p . Fully repaid At first I thought another two repaid earlier , I've already withdrawn and received funds, strange that they send e-mails two days after repayment. We should send someone round to speed things up and then charge them for it.
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Post by df on Apr 30, 2024 18:20:05 GMT
At first I thought another two repaid earlier , I've already withdrawn and received funds, strange that they send e-mails two days after repayment. We should send someone round to speed things up and then charge them for it. It's the first time they had early repayments (unless they had some before I signed up in July 2021) so I guess they weren't prepared and didn't have this automated.
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Post by Ace on Apr 30, 2024 18:30:31 GMT
We should send someone round to speed things up and then charge them for it. It's the first time they had early repayments (unless they had some before I signed up in July 2021) so I guess they weren't prepared and didn't have this automated. The dental loan repaid early after 15 months in April 2022. It was a real shame for me as it was my biggest loan. There may have been others, but that one particularly sticks in my mind.
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, I've already withdrawn and received funds, strange that they send e-mails two days after repayment.