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Post by GSV3MIaC on Jul 24, 2015 7:52:02 GMT
As long as The premium is low enough they can resell at a profit ... I don't think there are (m)any buy-to-hold bots.
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blender
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Post by blender on Jul 24, 2015 8:22:46 GMT
Thanks, I have put the first loan up for sale. (Nice avatar, Jonah) Why thank you. It seemed both apt and very inappropriate. if you don't mind me asking, why sell a loan part now when it looks very likely to be redeemed soon and is therefore lower risk? Or are you selling at a premium? I'm still trying to get my head around some of the nuances of this site. Responses above are correct. This one does not actually work because the term left is short and a premium soon decreases the buyer rate. I tried a premium of 0.5% and have sold nothing, so in this case a waste of time. It has to be at least 0.3% to cover the sale cost, and there is also the fact that when a loan is repaid it is paid up to the next repayment date. This trick can work, and of course if you have a sum in the first and wish to move it to the second, which I do, then it is the best way - rather than finding more cash temporarily. But in this case it does not work - or not for me.
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coop
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Post by coop on Jul 24, 2015 8:35:32 GMT
14505 Beaconsfield 1 (actually the 2nd tranche!) going for fixed of 12%... According to the note on the 'old' loan, the new one will be used in part to pay it. As they are both at 12% fixed.... my only comment is eh? Followed by, surely that would mean paying more FC fees etc? *confused of here* If you think that's stupid and confusing check this one out: www.fundingcircle.com/loans/71705/auctionA £52k loan at 18.2%; in part paying off the remaining £38k of a loan taken out at 9.4% As for Beaconsfield a £20 loan part sold at a premium yields a whopping 1p after fees.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 24, 2015 9:04:29 GMT
14505 Beaconsfield 1 (actually the 2nd tranche!) going for fixed of 12%... According to the note on the 'old' loan, the new one will be used in part to pay it. As they are both at 12% fixed.... my only comment is eh? Followed by, surely that would mean paying more FC fees etc? *confused of here* Based on my reading of the Q&A its something to do with a change in the proposition, variation in overdraft, so looks like it might be FC not the borrower who've requested it. Old loan never drew down (FC still have cash) so maybe they wont have to pay more fees as they never got the cash.
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blender
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Post by blender on Jul 24, 2015 9:28:14 GMT
According to the note on the 'old' loan, the new one will be used in part to pay it. As they are both at 12% fixed.... my only comment is eh? Followed by, surely that would mean paying more FC fees etc? *confused of here* Based on my reading of the Q&A its something to do with a change in the proposition, variation in overdraft, so looks like it might be FC not the borrower who've requested it. Old loan never drew down (FC still have cash) so maybe they wont have to pay more fees as they never got the cash. Well spotted. Yes FC can waive their fees even if the money was drawn down. It seems it is the lenders who have to cough up twice for one loan. No wonder they have not RBRd the first. Note that although the first fees will probably be carried forward into the replacement loan, the borrower is still responsible for the interest payments on the first loan up to the next repayment date - even if they never actually had the cash. FC will pay that and add it to the second loan. Edit: Sorry Pepperpot, missed your post. FC does not do daily rates, mainly because when a loan is set up a repayment schedule is calculated for each loan part for the term. (you can download it). Within the term and outside of default, they can distribute only full monthly repayments. (credit sl75 with my education on this).
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coop
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Post by coop on Jul 24, 2015 9:32:59 GMT
Responses above are correct. This one does not actually work because the term left is short and a premium soon decreases the buyer rate. I tried a premium of 0.5% and have sold nothing, so in this case a waste of time. It has to be at least 0.3% to cover the sale cost, and there is also the fact that when a loan is repaid it is paid up to the next repayment date. This trick can work, and of course if you have a sum in the first and wish to move it to the second, which I do, then it is the best way - rather than finding more cash temporarily. But in this case it does not work - or not for me. I'd forgotten about the paying up to the next repayment date bit, thanks. How sure are you that it's still the case on bridging loans? I'd expect in the interests of fairness to the borrower it would be calculated on a daily rate. That's how other platforms handle it. Otherwise they will be charged twice on the rolled over portion of money (till the next repayment date, 11Aug). As for Beaconsfield a £20 loan part sold at a premium yields a whopping 1p after fees. There is the selling fee but the 1% platform fee and the tax liability is incurred by the buyer. Higher rate taxpayers will see the benefit of getting half a months interest tax free. You're officially cleverer than I am then UNfortunately (fortunately?) I have no idea what it is to be a higher rate taxpayer. I'm guessing it feels warm and squishy inside.
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blender
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Post by blender on Jul 24, 2015 9:38:25 GMT
You're officially cleverer than I am then UNfortunately (fortunately?) I have no idea what it is to be a higher rate taxpayer. I'm guessing it feels warm and squishy inside.Nor I, but I do know that it is nasty and stressful trying to avoid higher rate tax - imagining what happens after the threshold must be a bit like what happens after death (the other certainty).
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coop
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Post by coop on Jul 24, 2015 9:46:27 GMT
Best to take a karmic approach to death and money then.
I dropped a fiver in the street two days ago.
It will come back around someday.
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Post by Deleted on Jul 24, 2015 11:12:07 GMT
more of a "tarmac" state of mind then
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registerme
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Post by registerme on Jul 24, 2015 12:01:51 GMT
I'm guessing it feels warm and squishy inside. Or try completely burnt out by the time you're in your 40s :/.
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coop
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Post by coop on Jul 24, 2015 12:09:22 GMT
Significantly younger than that; earning significantly less than high rate tax band; already partially dead on the inside loving my job.
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maxmarengo
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Post by maxmarengo on Jul 24, 2015 18:29:51 GMT
You're officially cleverer than I am then UNfortunately (fortunately?) I have no idea what it is to be a higher rate taxpayer. I'm guessing it feels warm and squishy inside.Nor I, but I do know that it is nasty and stressful trying to avoid higher rate tax - imagining what happens after the threshold must be a bit like what happens after death (the other certainty). One of the iniquities of the tax system is that there are many easy ways to avoid higher rate tax: a SIPP works very well and don't forget to mention all the charitable donations you made where you filled in the Gift Aid form. You get the higher rate tax back on your membership of the NT or your visit to the zoo. I even managed to get some tax relief for some junk I donated to the local charity shop. I'm pretty sure that in the last few years I worked I paid a lower percentage of Tax+NI than people earning £25k would have. Not really a progressive tax system!
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coop
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Post by coop on Jul 25, 2015 10:01:14 GMT
That's cool, I'll just keep paying you old farts' medical bills from my meagre salary. Thanks guys!
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Post by GSV3MIaC on Jul 25, 2015 15:15:48 GMT
At least we old farts no longer get a significantly higher tax free allowance than young squabs ... although we don't pay NI contributions on pensions and investment income. Doubtless the government will fix that before long, by rolling NI into the tax system, having long ago weaselled out of any 'you gets back in proportion to what you pays in' nonsense. Not sure what they can do about employers' NI though .. maybe just roll that, and corporation tax, into some sort of 'turnover tax' which Amaz-goo-pple won't be able to wriggle out from under?
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blender
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Post by blender on Jul 25, 2015 18:21:33 GMT
Despite being a superannuated old fart, I am with coop on this. I really am not sure when it became the responsibility of the state and its tax paying wealth creators to keep its elderly citizens alive and voting as long as possible at whatever the cost (prop 'em up?). In the old days the state was responsible for law and order, and for securing the territory from external threat, mostly. Democracy has a lot to answer for.
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