ukinvestor
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Post by ukinvestor on Jan 20, 2023 22:11:02 GMT
First time the proceeds from an auction (Rolex Oyster Perpeptual) are insufficient to repay the lenders Strangely enough, the amount credited consists of a capital repayment (which is less than the invested amount) and an interest repayment. I would have thought that interest would only be paid after the capital has been repaid. There is also a positive Unbolted Contribution, but I am not clear what this means? Any thoughts?
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Post by Ace on Jan 20, 2023 23:00:54 GMT
Yes, I also had 2 other watches that had an interest loss, but no capital loss today.
Did you just happen to check, or was the loss brought to your attention some other way. If it wasn't for your post I wouldn't have known until it showed up in the tax statement.
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Post by redpete on Jan 20, 2023 23:58:39 GMT
I had two loans today shown as paid off by auction of the asset and both had a shortfall.
I too was confused by the way UB split the payment between capital and interest. In one case the proceeds were sufficient to cover the loan plus fees but not the full interest. In the other case the proceeds were significantly short on covering the loan but UB still showed an allocation of the payment to interest.
I discovered it when I checked the transactions tab (which I do rigorously - to keep my tracking spreadsheet up to date as is my over-geeky habit).
These were the first two loans I've seen paid of by selling the assets, so disappointing that both were left with a shortfall. I've got another 7 loans in my portfolio due to go to auctions so it will be interesting to see how they go towards covering the loans.
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ukinvestor
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Post by ukinvestor on Jan 21, 2023 10:56:21 GMT
Yes, I also had 2 other watches that had an interest loss, but no capital loss today. Did you just happen to check, or was the loss brought to your attention some other way. If it wasn't for your post I wouldn't have known until it showed up in the tax statement. I always check auction sales.
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Post by Ace on Jan 21, 2023 11:08:45 GMT
Obviously, a single loss on 1 watch is nothing much to worry about, but coupled with 2 others that didn't fetch enough to cover the interest on the same day does make one wonder if its a valuation issue or a turn down in the market.
It also came the day after I posted an ISA transfer form to UB, so probably my fault!
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registerme
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Post by registerme on Jan 21, 2023 13:14:49 GMT
hmm, roughly a 24% loss on 2DFDCA3ED. Worth keeping an eye on...
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Post by redpete on Jan 21, 2023 13:34:42 GMT
hmm, roughly a 24% loss on 2DFDCA3ED. Worth keeping an eye on... And I don't know if it is normal for 24% of loans that should have been paid by now being overdue, and a further 27% paid off but late.
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dave4
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Post by dave4 on Jan 21, 2023 16:38:16 GMT
Kinda thinking its more the economic situation, less money floating about, less bidders at auctions, bidders wanting bargains ect..
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Post by redpete on Feb 1, 2023 12:33:17 GMT
And another one. Loan 6225, auction proceeds 4675. And again the money handed to investors has a proportion allocated to interest despite the shortfall in capital returned.
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easynow
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Popcorn anyone?
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Post by easynow on Feb 1, 2023 12:51:52 GMT
And yet again, as I noticed on another recent loan to repay at a loss to investors, this borrower was given more cash whilst having overdue loans.
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jonno
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nil satis nisi optimum
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Post by jonno on Feb 1, 2023 13:17:07 GMT
And another one. Loan 6225, auction proceeds 4675. And again the money handed to investors has a proportion allocated to interest despite the shortfall in capital returned. I have asked Unbolted directly this question. I will post their reply here when (if) I get it.
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Post by jono75 on Feb 1, 2023 17:47:09 GMT
And yet again, as I noticed on another recent loan to repay at a loss to investors, this borrower was given more cash whilst having overdue loans. Yes, I noticed that too, that's bad form.
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keitha
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Post by keitha on Feb 1, 2023 18:10:52 GMT
First time the proceeds from an auction (Rolex Oyster Perpeptual) are insufficient to repay the lenders Honestly I would not be surprised. Lets say I have a watch valued at £5,000 and borrow £3,000 against it at auction it has to go sell for at least £3,400 to cover Auction fees. now the Auctions I buy at tend to be selling business assets but the general form is selling price plus VAT (20%), plus Commission(15%), plus VAT(3%) on the Commission a total of 38% So to get a £5,000 watch at value I would not be bidding more than £3,700 even with no VAT I would only be bidding a maximum of £4,200, but this is if want it for me, as a trader I'd want it a good deal less and of course auctions rely on multiple bidders being interested
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Post by redpete on Feb 1, 2023 20:47:37 GMT
First time the proceeds from an auction (Rolex Oyster Perpeptual) are insufficient to repay the lenders Honestly I would not be surprised. Lets say I have a watch valued at £5,000 and borrow £3,000 against it at auction it has to go sell for at least £3,400 to cover Auction fees. now the Auctions I buy at tend to be selling business assets but the general form is selling price plus VAT (20%), plus Commission(15%), plus VAT(3%) on the Commission a total of 38% So to get a £5,000 watch at value I would not be bidding more than £3,700 even with no VAT I would only be bidding a maximum of £4,200, but this is if want it for me, as a trader I'd want it a good deal less and of course auctions rely on multiple bidders being interested I'm sure that's all correct, but UB would be well-aware of all this and I'd expect them to use the lower value on the assets they hold as security. I wonder if UB still include the following statement on their welcome emails: " We have robust valuation and recovery processes, and a record to be proud of with a 100% plus recovery rate."
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jonno
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Post by jonno on Feb 2, 2023 9:51:58 GMT
And another one. Loan 6225, auction proceeds 4675. And again the money handed to investors has a proportion allocated to interest despite the shortfall in capital returned. redpete (or Ace ) could you give me some example loan ref numbers of this phenomenon please.
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