ilmoro
Member of DD Central
'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 Jan 21, 2016 10:13:02 GMT
At the moment I judge the optimum prefund strategy to be as follows but as other lenders adjust their strategy it will need revision If you want £x; ... £1m-£2m bid 3x £2m-£3m bid 2x ... Why? If you want £1,000, and the pre-fund allocation is £500, you'll get £500 whether you bid for £1,000 or £100,000. Loans over 1m are still on a % allocation system so if you want £1000 and you bid £1000 on a twice oversubscribed loan youll get £500, if you bid £3000 youll get £1500 and can then sell the excess on the SM.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 21, 2016 10:51:09 GMT
This a good point.... I will add however that if you do get more than you require, don't panic as you can easily sell anything that you don't want on the SM. If there's been a recent raft of launches of loans so large that £6k pre-funders have received 100%, then the SM will not be anywhere NEAR as liquid as it is currently. Even the flabbiest, most arthritic of fingers will be like Usain Bolt on a Berocca overdose. I certainly wouldn't encourage it, but it is a mistake you could land yourself into if your scenario occurs. After the events surrounding pbl73 it was my understanding (correct me if I'm wrong!) that saving stream was satisfied that you was resolving your negative balance by placing the amount on the SM (this is what SS would do anyway if the negative balance is not resolved within 48hours); this seems to be backed up by the fact that while that amount is on the SM you don’t get no interest (that interest I would presume goes to SS).
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adrianc
Member of DD Central
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Post by adrianc on Jan 21, 2016 13:13:14 GMT
No, you won't. The original pre-funding allocation process still applies on loans over £1m (unless SS decide to change their process again) so everyone receives the same % of their requested pre-funding amount. Loans over 1m are still on a % allocation system Well, well, well. I did not know that. Ta.
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ben
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Post by ben on Jan 21, 2016 20:16:39 GMT
To begin with bid what you want better to not get enough then too much and not be able to shift it
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webwiz
Posts: 1,133
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Post by webwiz on Jan 21, 2016 23:27:33 GMT
At the moment I judge the optimum prefund strategy to be as follows but as other lenders adjust their strategy it will need revision If you want £x; up to £1m bid for £x you won't get it but there is no value in bidding more £1m-£2m bid 3x £2m-£3m bid 2x >£3m bid x Use at your own risk. I should revise this to say that when bidding for more than you want to try to get what you ideally want never bid for more than you are prepared to take, and can pay for, if necessary, if in fact you get the full amount. Do not rely on being able to sell any excess on the SM.
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