kaya
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Post by kaya on Jan 23, 2016 12:54:29 GMT
Safer? On paper, yes, but if a property crash comes along...
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adrianc
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Post by adrianc on Jan 23, 2016 13:15:59 GMT
Safer? On paper, yes, but if a property crash comes along... ...then the loan is still secured on an asset, albeit one that might now have a smaller value than the loan. Compared against the value of an unsecured personal guarantee from the director of a firm that's just gone into liquidation? Yes, I'd say safer was a reasonable word to use.
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blender
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Post by blender on Jan 23, 2016 14:03:49 GMT
Yes safer in that the interest payments are guaranteed - any problems will be related to the final repayment.
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tomtom
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Post by tomtom on Feb 7, 2016 9:02:58 GMT
Service Fee. I brought £20.00 in loan 18783 and have just received £0.16 interest and been charged £0.02 for service fee. How is this service fee calculated as £0.02 is 12.5% of interest received.?
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am
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Post by am on Feb 7, 2016 9:28:22 GMT
Service Fee. I brought £20.00 in loan 18783 and have just received £0.16 interest and been charged £0.02 for service fee. How is this service fee calculated as £0.02 is 12.5% of interest received.? Service fee is 1% annualised of outstanding capital. So, if you ignore amortisation, over the 1st year the loan fee on a £20 loan part is 20p, which after rounding ends up at 0.02p or 0.01p per month. (For a loan at 8% the service fee is 12.5% of interest received; it is more for lower rate loans, and less for higher rate loans.)
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tomtom
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Post by tomtom on Feb 7, 2016 9:47:16 GMT
Service Fee. I brought £20.00 in loan 18783 and have just received £0.16 interest and been charged £0.02 for service fee. How is this service fee calculated as £0.02 is 12.5% of interest received.? Service fee is 1% annualised of outstanding capital. So, if you ignore amortisation, over the 1st year the loan fee on a £20 loan part is 20p, which after rounding ends up at 0.02p or 0.01p per month. (For a loan at 8% the service fee is 12.5% of interest received; it is more for lower rate loans, and less for higher rate loans.) Thanks can now see how it is worked out, confusing when they say service fee is 1% but in actual fact the service fee is a much higher % of the income returned.
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Post by goldservice on Feb 7, 2016 9:48:36 GMT
This gives rise to a perverse incentive viz that if you sell before the first repayment date, there is no service fee to pay (tho' your buyer will have to pay it).
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bigfoot12
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Post by bigfoot12 on Feb 7, 2016 10:00:34 GMT
This gives rise to a perverse incentive viz that if you sell before the first repayment date, there is no service fee to pay (tho' your buyer will have to pay it). But the fee to sell is much higher than one month's service fee! (5p vs 2p on £20 loan). But if you are thinking of selling soon anyway it is worth thinking about.
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tomtom
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Post by tomtom on Feb 10, 2016 9:20:53 GMT
How can I see if a loan bid I made has been withdrawn for some reason ?
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bigfoot12
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Post by bigfoot12 on Feb 10, 2016 10:17:05 GMT
How can I see if a loan bid I made has been withdrawn for some reason ? I've only just learnt this myself and happy to pass it on. Add it to your watchlist. If it is withdrawn it is still in your watchlist, but the %filled goes down to 0%. You can click on it there and see why it was withdrawn in the comments.
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min
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Post by min on Feb 10, 2016 10:20:21 GMT
How can I see if a loan bid I made has been withdrawn for some reason ? I've only just learnt this myself and happy to pass it on. Add it to your watchlist. If it is withdrawn it is still in your watchlist, but the %filled goes down to 0%. You can click on it there and see why it was withdrawn in the comments. Info is under repayments tab. Just had an E that dropped out - paperwork not done on time i.e. they didn't want it at that rate
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Post by carpecyprinidae on Feb 17, 2016 19:04:58 GMT
The amount of bot activity on the SM is interesting
Thinking ahead to the FCISA I want my portfolio to be as saleable, and loss-insulated as possible as i expect a lot of people will be selling loan parts around early April, so I've been slowly selling off everything that isn't A+ rated, all at 0.3%/0.4% markup, and buying asset-secured / property A+ parts with the revenue.
A lot of it gets snapped up within a second of being offered. Didn't expect that.
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SteveT
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Post by SteveT on Feb 17, 2016 21:36:06 GMT
That presumably means your parts are priced well below the "best available" rate on that loan. Try looking at what others are selling the same loan for on the SM and then pricing your part just 0.1% better. You're leaving money on the table otherwise!
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