daveb4
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Post by daveb4 on Jan 19, 2016 12:26:37 GMT
Hi looking at this site as a potential as have property experience. Anyone had any recent experience please. Thanks
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Post by Invest&Fund on Aug 19, 2016 15:12:11 GMT
Invest&Fund How long does it take to credit deposits made by Faster Payments and when is interest on the loans paid. Hi Deees , We’ve been dormant on this forum for a while; in that time our product has changed significantly. May I direct you to this new thread that explains our changes in more detail, as a starting point? Regarding your questions: - Our account is checked for deposits regularly throughout the day on weekdays (excluding bank holidays). We do ask that one working day is given for deposits, however in practice, deposits are generally credited sooner. If we are notified that a deposit has been made this can be credited to your account much more quickly. - There are three types of repayment structures to our loans: 1. Fully amortising: Capital and interest is repaid monthly for the length of the repayment term. This is very unlikely to happen now that we are exclusively facilitating development and bridging loans. We do have several historical SME loans that are being run-off that repay using this model, so existing lenders to these loans will receive repayments in this way. 2. Interest only – fixed rate: Interest is repaid monthly, with the capital repaid in full at the end of the term. 3. Interest rolled up – fixed rate: Interest accrues daily and is paid in full along with the initial capital amount, at the end of the term. It’s important to note that transactions made via the Resale Marketplace can affect the way that interest is paid to Lenders.: 1. Fully amortising: The selling Lender would receive the capital sold, having received interest payments up until the date of the last loan repayment. The purchasing Lender shall acquire the capital balance and with it the right to receive all future interest payments. 2. Interest only – fixed rate: as Fully Amortising above viz. The selling Lender would receive the capital sold, having received interest payments up until the date of the last loan repayment. The purchasing Lender shall acquire the capital balance and with it the right to receive all future interest payments. 3. Interest rolled up – fixed rate: The selling lender would receive the capital sold, plus a 365-day basis calculation of the accrued interest due on that capital to the date of the sell transaction. This accrued interest is paid by the purchasing Lender, who shall receive this interest and other interest accruing during the remainder of the term. Please note that there are no early repayment fees for our Borrowers, however the minimum interest due on a loan is 91 days.
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littleoldlady
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Post by littleoldlady on Sept 8, 2016 13:49:56 GMT
When a loan of type 3 - Interest rolled up – fixed rate- is sold via the Resale Marketplace who is liable for tax on the interest accrued prior to the sale?
Does a loan on the Resale Marketplace continue to earn interest? Can the sale be cancelled - if not is there any penalty or draw back to repurchasing it?
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Post by Invest&Fund on Sept 8, 2016 17:09:41 GMT
When a loan of type 3 - Interest rolled up – fixed rate- is sold via the Resale Marketplace who is liable for tax on the interest accrued prior to the sale? Hi littleoldlady , The lender that physically receives any interest into their account is liable for the tax on that interest. An example:(Lenders assumed to be individuals) Lender A purchases a loan of £1000 (12 months, 12%) 3 months in, Lender A sells the £1000 loan part to Lender B - Lender B would pay Lender A £1030 i.e £1,000 capital repaid and £30 accrued interest paid by B at the time of sale. Lender A would be liable for tax on the £30 interest that they have received at that time in the tax year they physically received the money. If Lender B held the loan to maturity (assuming no early repayment was made by the borrower), then Lender B would received from the borrower £1120 for which he paid £1030, so Lender B would be liable for tax on the extra £90 interest. In summary, tax has been paid on the full £120 of interest, £30 by Lender A and £90 by Lender B. Yes - any loans that have been posted for sale will continue to accrue interest until sold. Yes, the posting of a loan for sale on the Resale Marketplace can be removed in the 'My Resale Offerings' tab on your main account dashboard. Once sold, the loan cannot be 'un-sold'. If you wanted to buy back into the same loan, you would have to purchase a resale offering for the loan from another lender (providing one is available at the time on the Resale Marketplace). Sellers do have the option to put a premium or discount on a sale of +/-10%, so this may have a bearing on the transaction. Any premium added by a seller is clearly identified to potential lenders. Please note there is a 0.25% resale fee, chargeable to the seller, upon the sale of a loan on the Resale Marketplace.
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littleoldlady
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Post by littleoldlady on Sept 9, 2016 7:10:56 GMT
Thanks for that comprehensive reply. All the answers were what I was hoping for, particularly the tax treatment - I am so glad you have not followed the FS route.
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oldgrumpy
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Post by oldgrumpy on Oct 26, 2017 15:29:34 GMT
Jargon explanation:
Expanding our lending metrics = lowering interest rates.
Now "from" 7.75% but the 0.75% fee is unchanged.
My feeling is that with bank rates expected to rise gradually, inflation at around 3%, taking risk for lending for 7% (-20% or -40% tax) is not adequate reward. This also applies to the AC offerings at a similar rate. I consider 8% for "safer" loans, but not 7% these days.
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ant1
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Post by ant1 on Jan 17, 2018 11:18:08 GMT
I am looking at possibly using this platform. Could anyone advise on how quickly loans are filled and how much notice do you receive ahead of a loan launching?
Many thanks.
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Steerpike
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Post by Steerpike on Jan 17, 2018 11:45:26 GMT
I tried investing with I&F last year as I was interested in investing in properly administered development loans even if they are at lower rates than those available on other P2P sites.
Eventually I gave up as I found that I&F has a comparatively poor deal flow, comparatively slow cash transfers, a fee that reduces the headline rate, no cash back or bonus rates, (almost?) all loans are roll up, there is no auto-bid or pledge system, new loans can be filled very quickly, and there is a fee for selling.
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ant1
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Post by ant1 on Jan 19, 2018 10:41:58 GMT
Thanks for that information, it is useful to know.
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oldgrumpy
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Post by oldgrumpy on Feb 22, 2018 16:32:42 GMT
I've been wasting time here. They still insist on emailing after loans have been launched, with no warning whatsoever, so there is no opportunity to transfer funds in time to participate before they are "sold out". The only way to be sure is leave money on deposit earning nothing, and loan opportunities often have several weeks between them so lowish rates compounded by fees to I & F compounded by cash-drag compounded by taking the risk .... I'm looking at at AC where there 8%ish loans on similar projects incur no fees, and my money earns 3.75% while it is waiting.
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oldgrumpy
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Post by oldgrumpy on Feb 23, 2018 10:24:55 GMT
Having been feeling grumpy and written all that, I refer to an email received on 2nd February which included:
Giving lenders 24 hours’ notice before a loan opens for bidding Many of the loans we publish to our Lending Marketplace fill in minutes and hours, which can be great for borrowers but frustrating for lenders.
To help with this, and to ensure lenders have enough time to consider a loan, we will shortly be changing the way we publish loans to our marketplace. The new process will include giving lenders 24-hour notice of a loan before bidding opens. We hope to have this ready in February and will contact you when this is in place.
Six days to go (including today).
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oldgrumpy
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Post by oldgrumpy on Mar 22, 2018 15:58:54 GMT
There was a new loan today. (They don't come very often).
So, from what I could see, I&F anounced the loan yesterday, (and sent an email), with no actual time for launch, and details were available for scrutiny. They placed its bid page on the site at 15:00 (not active), and the time started ticking down. Then at about 15:30 they put about £470K pre-bids in place (so 60%+ was already funded), then opened it up at about 15:31 with no bid limits, and it was all sold to just a very few lenders within four minutes.
An email was sent at 15:32 (went into my junk folder!) to inform lenders the loan was available. Only available, in practice, for the very vigilant, and those able to log in immediately.
I notice I&F have been asking for new lenders to sign up. Mmmm! It seems to me that the way I&F will be able to sign up more lendersd will be to ensure more lenders have the opportunity to have a slice of all new loans by adopting a moderate bid limit for at least the first four hours. That would make no difference to borrowers.
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oldgrumpy
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Post by oldgrumpy on Apr 13, 2018 20:58:39 GMT
A new loan paying 7% net will be going live on 16 April. Details (a lot of details) are on the website.
I&F are giving advance notifications of loans by email now. Very pleasing. Other assistance to existing registered lenders are also being introduced, which will help a lot, bearing in mind that loan opportunities are sporadic.
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daveb4
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Post by daveb4 on Oct 22, 2018 9:55:53 GMT
Hi any more updated info on new loan availability, how often, roughly what rates. Worth looking at? I am not interested in roll up loans. Thanks
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Post by shyinvestor on Nov 12, 2018 10:53:54 GMT
The loans do not come through thick and fast, but I seem to invest here once or twice per month. On various other sites like FS, LY and MT, decent new loans have really dried up. The loans I have on I&F used to average 9.5% but have shaded a little and now seem to average 9%, but rates are dropping everywhere.
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