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Post by pepperpot on Mar 31, 2015 13:00:02 GMT
I'm not making the same mistake twice, still waiting on cashback from NWBL. Possible drawdown delays, spelling mistake on the paperwok, and your 1% cashback soon gets eaten up. I hope to be feeding the worms instead. Oh ! I don't want to feed any worms (or vice versa). What put me off the new one is that its a bullet (all interest at the end) - I double checked this with Dominic, timing is approx. 2 weeks to repay the existing loan and launch this, subject to the usual caveats. Important details such as this ought to be in the deal description rather than having to be extracted via a phone call to Dominic. Was that just an oversight, or are AC trying to ensure that nothing is 'promised' in writing? Without that info, I was presuming the current loan would be paid off as we have been told it would be, this week. The email announcing the new loan opportunity indicates the loan hasn't been funded fully yet, which is why it isn't on the Upcoming Loans list. Since it typically takes at least a month from auction close to drawdown, I was expecting there to be a gap of a month or more between funds coming out of Loan #101 and going into the new loan. That would negate the advantage of the 1% cashback, so there's not much point in rolling an investment over. With the new loan being £750k larger than #101, I expect there will be plenty of it available on the Aftermarket for some considerable time after drawdown, especially since no interest is paid until the loan is repaid. From talking to Martin yesterday I believe they are looking at mid April for the drawdown of the new loan. From the timings highlighted above, the two might be quite close so I'm minded to take a gamble and roll. The new one does have the added advantage of offsetting some income into the 16/17 tax year, also the 1%cb is tax free so even if there is a month or so delay to drawdown the tax advantage is still present. I would have preferred to have a full CR to make the decision on though.
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agent69
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Post by agent69 on Mar 31, 2015 13:23:35 GMT
I had a few quid in the original loan, but have been running my exposure down as the repayment date drew nearer.
Don't think Ill be rushing to roll over, especially with interest paid at term. Shame because I thought 101 was a decent offering.
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oldgrumpy
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Post by oldgrumpy on Mar 31, 2015 13:30:14 GMT
I wish AC would not present us with loans where interest is rolled on to the end. We all know that "payback time" often becomes "loan extended" time so on this one it could be up to two years before the borrower even pays a penny. Then if a default occurs we take the extra risk of not even getting that! 15%, maybe, 10% - nah!!
The 1% cashback is hardly a mind-changer, especially when drawdown is "looked at" in mid-April .... as if we don't keep a good supply of salt in pinch size quantities for forecasts like that!
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ilmoro
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Post by ilmoro on Mar 31, 2015 14:46:12 GMT
Second email with full CR attached just received.
Implies that #101 wont repay this week & there will be no idle funds time
'first West Lancashire Care Home (WLCH), which AC
investors funded and which will be repaid contemporaneously with drawdown of this facility.'
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mikes1531
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Post by mikes1531 on Mar 31, 2015 15:15:59 GMT
... also the 1%cb is tax free ... : Says who? AFAIK, AC have never suggested that. Other platforms seem to have mixed opinions, with some saying it's taxable, and others saying it's not. Have I missed something definitive from HMRC?
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 31, 2015 15:23:59 GMT
Second email with full CR attached just received. Implies that #101 wont repay this week & there will be no idle funds time 'first West Lancashire Care Home (WLCH), which AC investors funded and which will be repaid contemporaneously with drawdown of this facility.' Great word, had to look that one up. Simultaneously or concurrently would imply no idle down time, contemporaneously is just vague enough to allow some leeway.
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mikes1531
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Post by mikes1531 on Mar 31, 2015 15:31:43 GMT
Implies that #101 wont repay this week & there will be no idle funds time 'first West Lancashire Care Home (WLCH), which AC investors funded and which will be repaid contemporaneously with drawdown of this facility.' The most recent entry on the Loan #101 Overview tab is... I do wish andrewholgate and AC would put a higher priority on keeping their investors informed. Those lenders who believed AC when they said the borrower of #101 would be repaying on 27/Mar unless AC told them otherwise are going to be rather disappointed to find out they haven't been told that #101 won't be repaid for another couple of weeks at best.
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Post by pepperpot on Mar 31, 2015 16:36:10 GMT
... also the 1%cb is tax free ... : Says who? AFAIK, AC have never suggested that. Other platforms seem to have mixed opinions, with some saying it's taxable, and others saying it's not. Have I missed something definitive from HMRC? I was going off the tax statement, where cashback is segregated from interest earned, but it seems they do indeed total it together as 'income earned'. I'm out of touch with AC cb's and too used to FC supplying a tax statement which (along with their T+C's) suggests cashback is considered an incentive to invest, not earnings.
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mikes1531
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Post by mikes1531 on Mar 31, 2015 17:33:27 GMT
Second email with full CR attached just received. Implies that #101 wont repay this week & there will be no idle funds time If it's going to be a couple of weeks before #101 is repaid and the new loan draws down, why was there such a rush to force us to decide whether or not to roll over our investments based on an 'teaser' Credit Report? Dominic: What's the hurry? Was it really necessary to apply so much pressure on #101 lenders?
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ilmoro
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Post by ilmoro on Mar 31, 2015 19:11:25 GMT
Implies that #101 wont repay this week & there will be no idle funds time 'first West Lancashire Care Home (WLCH), which AC investors funded and which will be repaid contemporaneously with drawdown of th facility.' The most recent entry on the Loan #101 Overview tab is... I do wish andrewholgate and AC would put a higher priority on keeping their investors informed. Those lenders who believed AC when they said the borrower of #101 would be repaying on 27/Mar unless AC told them otherwise are going to be rather disappointed to find out they haven't been told that #101 won't be repaid for another couple of weeks at best. Couple of update in Q&A informing lenders there was going to be a delay. Not actually due until July. Why they cant put this info in updates and/or send a specific email to update the previous one informing of early repayment is unclear (Should really have to wade through a CR for the vague info on repayment date)
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Post by whitmanthecat on Mar 31, 2015 20:47:31 GMT
pepperpot: Says who? AFAIK, AC have never suggested that. Other platforms seem to have mixed opinions, with some saying it's taxable, and others saying it's not. Have I missed something definitive from HMRC? I was going off the tax statement, where cashback is segregated from interest earned, but it seems they do indeed total it together as 'income earned'. I'm out of touch with AC cb's and too used to FC supplying a tax statement which (along with their T+C's) suggests cashback is considered an incentive to invest, not earnings. I'm not aware of anything definitive. I believe you're right that an inducement to invest is not necessarily taxable, while anything effectively interest is taxable, though it's still a grey area. If there was going to be a two-week drawdown delay, then the 1% might have been seen as interest. If simultaneous, then it's not interest. How HMRC see it isn't clear.
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mikes1531
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Post by mikes1531 on Mar 31, 2015 22:06:19 GMT
... like ThinCats who have a pipeline of loans and lender funds that AC can only dream of. Unfortunately, AC can only dream because their new way of operating means they can't know at an early stage how much their retail investors are prepared to invest because they've been relegated to the Aftermarket. So AC have to underwrite 100% of every loan first, rather than their previous model where they only had to underwrite the bit that the retail lenders didn't take up. And the UWs may be a bit reluctant to cover large chunks of loans because they've been left holding the bag too often -- look at how much of the MTFP or LR loans still are available now, many months after those loans went live. And the trend towards lower interest rates on loans doesn't help -- UWs are bound to be less willing to hold onto parts very long at those rates, and retail lenders are more likely to invest via other P2P platforms which might be offering greater returns. I looked at the Seedrs website earlier today and noted the description of AC as "Leading peer to peer/marketplace business lender with 300% pa growth in lending." Unless something changes very soon, that growth rate is going to need revising.
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tonyr
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Post by tonyr on Apr 1, 2015 7:19:22 GMT
Implies that #101 wont repay this week & there will be no idle funds time 'first West Lancashire Care Home (WLCH), which AC investors funded and which will be repaid contemporaneously with drawdown of this facility.' The most recent entry on the Loan #101 Overview tab is... I do wish andrewholgate and AC would put a higher priority on keeping their investors informed. Those lenders who believed AC when they said the borrower of #101 would be repaying on 27/Mar unless AC told them otherwise are going to be rather disappointed to find out they haven't been told that #101 won't be repaid for another couple of weeks at best. It's the broken promises that get me. I tell people that work for me they either do what we agreed or tell me that we have to change plans. Either is fine, what's really buggers things up is knowing things can't work out and not saying it.
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pikestaff
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Post by pikestaff on Apr 1, 2015 7:38:11 GMT
The most recent entry on the Loan #101 Overview tab is... I do wish andrewholgate and AC would put a higher priority on keeping their investors informed. Those lenders who believed AC when they said the borrower of #101 would be repaying on 27/Mar unless AC told them otherwise are going to be rather disappointed to find out they haven't been told that #101 won't be repaid for another couple of weeks at best. It's the broken promises that get me. I tell people that work for me they either do what we agreed or tell me that we have to change plans. Either is fine, what's really buggers things up is knowing things can't work out and not saying it. I cannot get worked up about small delays - especially when it's a delay in an early repayment resulting from a refinance. Completion dates regularly slip. However, AC should be more consistent about where they put updates and (as frequently noted) they need a way to push updates to lenders.
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mikes1531
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Post by mikes1531 on Apr 1, 2015 12:29:16 GMT
It's the broken promises that get me. I cannot get worked up about small delays... I don't get worked up about small delays either. It the lack of info I receive when AC know that something has changed but don't say anything about it. Or when they say they're going to do something and then don't do it. That's what bothers me. Often, actually, I can ignore the redemption delays because I have a tendency to sell down my holdings as soon as I'm told there's going to be a redemption. I'd rather redeploy those assets a bit at a time than have a big lump to deal with at the same time that others are trying to do the same. That's why I've sold most of my #101 holding already -- I was concerned what might happen when £2.55M arrived back in the platform all at once and needed to find a new home. In this case, the 'rollover' option has made a lot of that issue disappear.
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